Expression of Interest For Market Research On Application Of Ai And Ml In The Indian Financial Services Industry

Expression of Interest are invited for Market Research on application of AI and ML in the Indian financial services industry The financial services sector in India has undergone substantial digital transformation in the past two decades, enhancing convenience, efficiency, and security. And AI, ML are now catalyzing a significant shift and playing a transformative role in customer servicing, automating processes for cost reduction, and for efficient regulatory compliance/reporting for Financial Institutions (FIs) in India. And with the evolution of big data, cloud computing, innovative hardware, and faster special-purpose systems, the growth of AI, ML has been faster in the last few years. The market for AI in fintech is also expanding, with its value estimated at USD $42.83 billion in 2023 and projected to grow to USD $44.08 billion in 2024 (Statista, 2024). This growth represents a compound annual growth rate (CAGR) of 2.91%, with forecasts suggesting the market will exceed USD $50 billion by 2029 (Statista, 2024). Alongside this sector-specific growth, the International Monetary Fund predicts that overall financial sector spending on AI will more than double to $97 billion by 2027, showcasing a 29% CAGRthe fastest among five major industries. At the same time, the rapid adoption of AI also introduces significant risks that financial institutions must carefully manage. These risks include ethical concerns such as AI bias, challenges in data privacy, and the potential for regulatory non-compliance. Without robust strategies to mitigate these risks, financial institutions are vulnerable to operational disruptions, legal liabilities, and reputational damage. The urgency to address AI-related risks is compounded by the fact that only 39% of financial institutions have advanced from AI/Machine Learning (ML) pilots to full production, as highlighted by a 2023 Gartner survey. The study under this ToR would produce a current state assessment of the existing AI, ML applications (use cases); analyze the drivers and inhibitors of successful AI, ML adoptions in Indian FIs; highlight potential, emerging areas/use cases for use of AI, ML; conduct a risk analysis of AI, ML adoption across different use cases, including linkages between deployment of AI, ML and the Digital Personal Data Protection Act (DPDP) of 2023; and document global best practices/use cases which are relevant for the Indian context. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/4566/view.html