Banking in the Asia Pacific region is expected to see a surge in earnings boost due to contributions from artificial intelligence, according to a forecast by market analysis website Stocklytics.com.
By the end of 2024, the banking industry is expected to see around $164 billion added to its earnings due to artificial intelligence (AI), according to a report by Stocklytics.com, up from $143 billion in 2023.
AI contributions are forecasted to be the largest in North America ($49 billion) and Asia ($49 billion) followed by Europe ($47 billion).
Widening Gap
The regional gap is expected to widen moving forward. By 2027, APAC is projected to see the sharpest rise with AI contributing to $71 billion in earnings. North America and Europe will contribute $63 billion each.
And by 2030, APAC will hit $99 billion followed by $86 billion from Europe and $76 billion from North America. The Middle East and Africa will also add $20 billion alongside $18 billion from South America.
2024 Usage
This year, banks have been leveraging AI primarily to enhance customer experiences and operational efficiency. For example, Bank of America has launched an AI-driven chatbot, Erica, to provide customer support as well as handle queries and transactions. Barclays has also used AI technology to detect and prevent real-time fraud.
«Banks’ trial run with AI have proven successful, signaling a growing trend of AI adoption across the banking sector,» said Edith Reads, financial analyst at Stocklytics.com. «The improvements in productivity and customer experience brought about by AI have increased the attractiveness of banks, contributing to this substantial revenue growth.»
