AI to have fintech earnings jump 960 per cent by 2021

Earnings created by the use of artificial intelligence (AI) in financial technology (fintech) will skyrocket in the next five years, according to new reports by Juniper Research.

The researchers have said that, by 2021, we should expect a jump of 960 per cent, with revenues hitting $17 billion (£12.95bn).

There are two main reasons behind such a significant jump in the near future, Juniper says. The first one is the fact that machine learning used to be way too expensive, and computationally time-intensive to hit the mainstream. That is no longer the case.

The second reason is that access to extensive data sets for the purpose of algorithm training wasn't all that available.

Distributed architecture and much more powerful GPU units have allowed AI to be more widely available on the market, Juniper says.

“Where Big Data analytics offered retrospective business intelligence, machine learning offers predictive and even prescriptive capabilities.” said research author Steffen Sorrell. “Data is key – and industries able to draw expertise from data scientists will be the first to capitalise on the AI opportunity.”

More details about the report, entitled Fintech AI ~ A New Kind of Trader, can be found on the Juniper Research website.

Juniper's latest study, AI & Machine Learning: Fintech Dynamics, Disruption & Future Opportunities 2016-2021, can be found here.

Image source: Shutterstock/Montri Nipitvittaya