TECH BUYER Oct 2020 - Tech Buyer Presentation - Doc # AP46522820
Asia/Pacific Financial Services: Artificial Intelligence Market Forecast, 2020–2024
By: Sneha KapoorSenior Research Manager, Ashutosh Bisht
This Tech Buyer Presentation presents IDC's view on the state of artificial intelligence (AI) in the financial services industry in Asia/Pacific (excluding Japan) (APEJ). The presentation briefly summarizes market forecasts, key market dynamics, and use cases. This report is the sixth in the series on automation and AI for APEJ financial services.
Enterprises are pivoting toward a future of intelligence and therefore, and the demand for AI continues to grow. "The spending on AI by the financial services sector in APEJ is estimated to grow at a compound annual growth rate (CAGR) of 22.1% in the 2019–2024 period to reach US$4.29 billion in 2024. The financial services spending in APEJ represents 15% of the worldwide spending on AI," says Ashutosh Bisht, senior research manager, IDC Asia/Pacific.
Sneha Kapoor, research manager, IDC Financial Insights, highlights, "In Asia/Pacific, the banking industry is the largest spender on AI. The People's Republic of China (PRC) continues to lead the pack in the region. With a 45% share of the total APEJ AI spending, PRC was the largest market in 2019 and will continue its dominance through 2024. We are also seeing traction and advancements in other countries, such as Australia, India, Korea, Singapore, and Hong Kong."
We also believe that the COVID-19 pandemic has pushed digital transformation (DX) at the forefront for enterprises. The crisis has accelerated two years’ worth of DX initiatives in just two months. The role of AI in the DX journey is undisputed. As enterprises continue to stride toward the next normal, they will start to invest in AI to achieve unprecedented value through greater intelligence.