Increasing use of artificial intelligence (AI) will lead to a surge in fintech revenues over the next five years, according to a new report from Junipur.
The report claims that use of AI technology will drive a 960% increase in fintech revenues globally, reaching $17bn by 2021.
The main driving force for this dramatic rise is the decreasing cost of machine learning and AI technologies. As this continues more and more companies will be able to afford to implement the technology that was previously expensive and time-consuming to build and run.
The other important factor in increasing fintech revenues from AI is the greater access to large sets of data on which algorithms can be tested, says Juniper.
“Where Big Data analytics offered retrospective business intelligence, machine learning offers predictive and even prescriptive capabilities”, says research author Steffen Sorrell. “Data is key and industries able to draw expertise from data scientists will be the first to capitalize on the AI opportunity.”
It’s fintech’s heavy use of big data that will allow it to capitalise on the lowering cost of AI, as well as distributed architectures and more powerful GPU units.
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