By Roman Eloshvili
When it comes to fintech, AI is no longer just an innovation — it’s rapidly becoming a necessity, taking efficiency, compliance, and customer safety to new heights. As the adoption of this technology accelerates, AI will soon grow from a mere “upgrade” into a standard feature in financial services.
Artificial Intelligence has rapidly changed from just a novel and promising technology into a present-day necessity in the field of finance and fintech. According to market surveys, 75% of respondent companies are already using AI, and another 10% are planning to adopt it in the next three years. These numbers are a significant jump from the joint 2022 report by the Bank of England and the Financial Conduct Authority, which showcased adoption rates of 58% and 14%, respectively.
This leaves a prominent question: what will the next generation of AI applications in fintech look like?
AI as the Foundation of Future Fintech
The size of the AI market in fintech stood at roughly $17 billion in 2024, and is expected to reach over $70 billion by 2033. With growth projections like these, it is plain to see that this technology is anticipated to transform operations of financial organizations on all levels.
1. Compliance
The field where I can see artificial intelligence making a definitive change is compliance. Regulatory requirements continue to grow in strictness and complexity, making it increasingly difficult for financial companies to stay ahead using traditional methods.
AI can handle high-volume, repetitive compliance tasks with great accuracy, reducing operational costs and the strain on human workers. Juniper Research previously estimated that AI-driven automation will save banks $900 million in operational costs by 2028, becoming a game-changer for compliance teams.
And it’s not just about automation. AI-powered compliance systems can provide real-time regulatory monitoring, making sure companies can detect potential issues before they get in trouble with their local watchdogs. This is a highly useful feature, particularly for companies on the smaller side. Paying regulatory fines can cost a pretty penny, and not every business can afford to make such missteps.
2. Fraud Prevention
Fraud prevention is likely to become another prominent field of AI usage. Cybercriminals never stop improving their tactics, and AI will inevitably become a prominent tool in their arsenal. When that happens, traditional methods of detecting fraud will no longer be able to keep up, and financial organizations will have to turn to AI-based systems for more reliable protective measures.
It will become an arms race in a way, with criminals and financial organizations both deploying increasingly sophisticated AI models in an attempt to outwit the other party. The market size of AI in fraud management is expected to surpass $30 billion within the next five years.
The graph above illustrates how the market size of AI in fraud management is expected to see rapid growth over the course of 2024-2029.
3. Customer experience
Of course, we can’t ignore the role AI can play in improving the ways for businesses to interact with their customers. Providing better experiences through greater personalization of services is already the name of the game, and it will only become more crucial as we move forward.
AI-powered chatbots and virtual assistants are already proving their worth by handling increasingly complex customer inquiries. IBM previously estimated that such tools can cut expenses in this area by up to 80%.
As predictive AI models grow more sophisticated and precise, they will be able to anticipate client needs and proactively recommend products and services to satisfy those needs. In the same manner, robo-advisers will be able to offer investment advice suited to the preferences and risk tolerance of individual customers.
All of this will greatly simplify financial planning for countless people, taking the realm of financial services multiple steps above what we have now.
The Road Ahead
In 2025, I expect that AI adoption will grow easier than ever before, with pre-built solutions becoming readily available for countless companies to integrate. As a result, it likely won’t be long before we see AI support becoming a standard feature in financial service packages — possibly even offered at no additional cost.
When AI turns from a “nice to have gimmick” into a fundamental business tool, we can expect the entire global financial and business ecosystem to be brought to a new level.
By taking over the burden of tending to routine tasks, AI will play a great role in streamlining countless internal processes and driving operational efficiency. At the same time, I foresee it becoming capable of tracking regulatory changes and advising on implementing any compliance changes, ensuring that companies don’t fall into any regulatory pitfalls.
Beyond that, using AI in predictive analytics will bring about more sophisticated risk assessment methods, helping financial institutions better anticipate market trends and advise their customers. Finally, as I already mentioned, AI will come to play a key role in the field of cybersecurity, allowing companies to ensure greater safety for themselves and their clients.
That said, in order to garner more trust from the regulators, AI models themselves will have to become more transparent, providing clear explanations for their decision-making processes. I am curious to see how regulations in this area will develop going forward.
The financial landscape is changing, and AI is at the heart of this transformation. Just as mobile phones and the Internet itself have become staples in our daily lives, so too will artificial intelligence likely become a fundamental part of both fintech and industries beyond it. Businesses that see it as a strategic asset rather than just an “upgrade” will be the ones to come out ahead in this race.
About the Author
Roman Eloshvili is a C-level executive with an extensive background in developing fintech solutions for banks. He embarked on his journey in finance over 20 years ago, initially venturing into investment real estate and traditional banking. In 2023, recognizing the potential of AI to revolutionize the financial sector, Roman founded ComplyControl. Leveraging an AI-powered system, ComplyControl provides a comprehensive analysis of transactional data and account behavior, pinpointing anomalies and potential risks, and enabling users to take proactive measures.
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