AI-powered Financial Fraud Detection to grow to $10bn by 2027

Among the various uses to which artificial intelligence (AI) can be put is fraud prevention and detection, an area in which a Juniper Research study predicts that more than $10 billion will be invested globally by 2027.

The figure represents a 57% growth from the current $6.5 billion market. As the use of e-payment platforms grows, as they proliferate, and as scams become more sophisticated, so does the need to reduce fraud by both businesses and e-payment issuers.

AI can help with tasks such as identifying patterns in scams and can even reduce risks by blocking potentially fraudulent transactions in real-time.

The implementation of this type of technology, while requiring an investment, will lead to significant cost savings by providing greater security in transactions, resulting in an effective return on the investment made in fraud prevention services. Currently, according to Juniper Research, applying AI to these processes represents a cost saving of $2.7 billion, which could reach $10.4 billion by 2027, an increase of 285%.

In terms of the areas in which action in this area should be concentrated, it is recommended that it should focus on access to transaction data and trends so that a higher level of network intelligence can be achieved, which in turn improves the ability to detect fraud.