Sector-Wise Trends in AI
Banking, Financial Services, Insurance (BFSI):
- In the 2022 Gartner Data and Analytics for Digital Transformation Survey, 67% of respondents from banking reported to be using AI in their current business operations.
Source: Gartner - As per reports by Global Market Insights, the global market size of AI in BFSI was $20 billion in 2022. This figure is expected to reach $100 million in 2032, rapidly growing at a CAGR of 20% from 2023 to 2032.
Source: GM Insights - As of December 2021, 32% of FinTech companies have already leveraged AI technology, including voice recognition, virtual agents, and predictive analytics.
Source: Grand View Research
- Fraud detection and prevention, risk assessment, customer care, and investment management are some of the top BFSI processes utilizing AI.
Source: Tojdel
- In fact, Juniper Research’s report AI in Financial Fraud Detection suggests that the total spending of the BFSI sector on AI-enabled financial fraud detection is likely to exceed $10 billion by 2027.
Source: Juniper Research
- Over 30% of BFSI companies leverage AI in product development.
Source: Statista - AI can potentially boost productivity in banks by 22-30%, with chances of revenue increasing by 6%.
Source: Accenture - Financial institutions could save up to $1 trillion by 2030 by adopting AI and automation.
Source: Latinia
- The market size of AI in insurance was approximately $4.59 billion in 2022. This figure is likely to reach $79.86 billion by 2032, growing at a CAGR of 33.06% from 2023 to 2032.
Source: Precedence Research - Financial institutions can save approximately $1 trillion by adopting AI and automation.
Source: Autonomous Research - A Forbes analysis suggests that banks will possibly benefit the most from GenAI than any other type of AI. The expected increase in productivity is 22-30%.
Source: Forbes
- BFSI accounts for 18% of the aggregate global machine learning market share among end-use industries.
Healthcare:
- Out of 1,081 physicians responding to an AMA survey, about two-thirds acknowledged the advantages of AI in healthcare.
Source: AMA
- Artificial Intelligence in healthcare is predicted to grow at a CAGR of 37% during the forecast period 2023-30, increasing from $15.1 billion in 2022 to $187.95 billion by 2030.
- In healthcare, AI isn’t limited to software applications. Robot-assisted surgeries, for example, have already attained a market size of $9.5 billion. By 2029, this figure will have likely reached $17.87 billion.
Source: Mordor Intelligence - In the United States, the compound annual growth rate of AI in healthcare is 36.1%.
Source: Intel - As per the Harvard School of Public Health, using AI for diagnoses can reduce treatment costs by up to 50% and enhance health results by 40%.
Source: Harvard School of Public Health - PwC reports suggest that 51% of adults in the country who perceive ethnic biases in healthcare believe that AI will reduce bias.
Source: PwC - Over 75% of radiologists surveyed by the European Society of Radiology opined that AI-based algorithmic results are reliable.
Source: Insight Imaging
- A study revealed that 64% of patients are comfortable with AI being used to facilitate 24x7 access to answers that nurses usually provide.
Source: Syneos Health Communications
- 55% of respondents in a Pew Research survey reported to believe that AI would increase the accuracy of skin cancer diagnosis. 13% responded that AI diagnosis would be less accurate than that by humans, whereas 30% said it wouldn’t make a significant difference.
Source: Pew Research
- In the same Pew Research survey, 6 in 10 respondents admitted that they would be uncomfortable if their healthcare provider relied on AI.
Source: Pew Research
- Also, only 10% of adults claim to properly understand the use of AI in healthcare.
Source: Salesforce
- 75% of adults in the U.S. believe that the healthcare industry will adopt AI too quickly, without fully understanding the risks involved for patients.
Source: Pew Research - Moreover, only 54% of respondents in a PwC survey reported that they would be comfortable answering health questions posed by an advanced AI robot or tool.
Source: PwC
Legal services:
- The current market value of AI software in the legal industry is estimated at $2.19 billion. It is expected to grow at a CAGR of 10.7%, increasing to $3.64 billion by 2029.
Source: Mordor Intelligence
- This projected growth rate corresponds to a 2023 survey by Wolters Kluwer, wherein 73% of lawyers surveyed expected to implement generative AI in their business operations, although only 36% reported to be leveraging it currently.
Source: Wolters Kluwer - A study by the Global Economics Analyst suggests that over 44% of legal tasks can be automated. Due diligence, predictive analytics, document reviews, cybersecurity, litigation analysis, and compliance are some of the business processes for which legal professionals are leveraging or expecting to leverage AI software.
Source: Global Economics Analyst
- Statista reports from 2023 suggest that for almost 36% of legal professionals, the use of AI was only out of curiosity. About 21.1% of law professionals leveraged AI to produce non-legal text.
Source: Statista
- Over 67% of legal professionals expect AI—specifically GenAI—to bring about a transformational or high-impact change in their field over the next five years.
Source: Thomas Reuters - The top priorities of law firms are found to include productivity (75%), internal efficiency (50%), and recruitment and retention (44%), all of which correspond to the areas where AI can be highly impactful.
Source: Thomas Reuters - In 2023, almost a quarter of legal respondents in a Statista survey reported using GenAI every day.
Source: Statista - Almost 29% of legal professionals view privacy and data security as the major concerns for law firms in terms of leveraging GenAI.
Source: Statista - 79% of those from the legal industry agree that GenAI would be a distinguishing factor between successful and unsuccessful law firms within the next five years.
Source: Statista - 50% of security and privacy professionals worldwide claimed that their organization explained AI’s functioning and ensured that a human was involved in the process.
Source: Statista - 34% of legal professionals believed that the practice of law on which GenAI has the strongest impact is document drafting. However, the practice of law on which they wanted GenAI to have the strongest impact was preparing summaries and analysis.
Source: Statista - 70% of the top law firms in the U.S. expect AI to facilitate value-added work for their clients. 30% believe that it would increase their firm’s revenue.
Source: Statista
Education:
- Valued at $5.44 billion in 2024, AI in education is expected to expand at a CAGR of 47.2% during the forecast period 2024-2030. By 2030, this figure will have reached $55.44 billion.
- AI-powered chatbots and teaching assistants have gained considerable momentum over the past few years. For example, Jill Watson, an AI teaching assistant developed at Georgia Tech in 2016, was a resounding success, with a 97% success rate in answering student questions.
Source: EdTech Magazine - By 2020, Jill Watson had taken about 17 classes in Georgia Tech, including graduate, undergraduate, online, and residential ones.
Source: https://pe.gatech.edu/blog/meet-jill-watson-georgia-techs-first-ai-teaching-assistant - In a survey by Quizlet, 73% of students agreed that AI technology for learning helped them understand their course material better, while 67% reported that it helped them study more efficiently.
Source: Quizlet
- 42% of the respondents agreed that AI created a more equitable learning system.
Source: Quizlet - 47% of students and 48% of teachers admitted that AI technology has impacted student learning positively.
Source: Quizlet
- Several students are also using AI voice technology to learn English as a foreign language. For example, over 800,000 students have used Edwin, an AI-powered EFL application.
Source: Business Wire - AI platforms like Gradescope have been improving grading quality and reducing grading time for teachers. In the Technology Evaluation Report by the University of British Columbia, teaching assistants with considerable double-checking experience agreed that Gradescope was accurate 95% of the time.
Source: University of British Columbia - Also, 69.2% of students felt that they received their Gradescope-graded exams/assignments more quickly than they usually did.
- In terms of language learning, Duolingo, an app that utilizes AI to assist learners to increase foreign language proficiency, had the highest monthly downloads among such apps, with 16.2 million downloads in January 2024.
Source: Statista
- In Wiley’s survey of college instructors, 58% respondents said that they or their students were already using generative AI in their classrooms.
Source: Wiley
- Similarly, in a survey by Forbes, 60% of educators admitted to be using AI in their classrooms, with those under age 26 reporting the highest rates of AI usage.
Source: Forbes
- However, 98% of these educators believed that there was a need for at least some awareness on the ethical usage of AI.
Source: Forbes
Other industries:
- Telecommunications: The global spending by telecom operators for AI network orchestration is expected to grow by 240%, from $6 billion in 2024 to $20 billion in 2028.
Source: Juniper Research - Hospitality: The market value of AI in hospitality was $90 million in 2022. By 2033, it is expected to be valued at $8.12 billion, at a CAGR of 60% during the forecast period.
Source: WeMarket Research - Real estate: Estimated at $226.71 billion in 2024, the global value of AI in real estate is expected to grow to $731.59 billion in 2028, at a CAGR of 34%.
Source: The Business Research Company - Agriculture: The AI market in agriculture generated a revenue of $1.64 billion in 2023 and is expected to reach $7.85 billion by 2030. Predictive analytics is the fastest growing AI technology in agriculture, with an expected CAGR of 25.6% from 2024 to 2030.
Source: P&S
- Supply chain: The expected CAGR for AI in the supply chain from 2024 to 2031 is 40.4%, with 70% of CEOs having witnessed immediate ROI on their AI investments.
Source: Meticulous Research