I've been reading a lot about deals in the AI marketplace - investments, fundraising, and how the biggest names in tech are pouring billions of dollars into the industry segment.
But what are the traditional players doing? What institutions are leading in AI? Who is investing? Why are they investing? Where is the investment being directed, and what is the expected outcome? I pulled together information from a variety of different resources.
The headline kind of says it all - but don't confuse the USA and North America - surprise Canada also has captured a significant share in the artificial intelligence banking segment.
Lets start with the most recent report, the Evident AI Index reveals which banks are leading in AI adoption and best usage. Researchers using Evident, the AI benchmarking and intelligence platform, developed the "Evident AI Index" which is an independent benchmark for commercial AI adoption and performance in the financial services industry.
First published in January 2023, the Index ranks the effectiveness with which commercial financial services and banks are developing, adopting, and/or implementing AI across their organization.
Assessing the AI maturity of 50 of the world’s largest banks - combining extensive manual research, automated data capture from public sources, consultation across a network of AI experts, and dialogue with featured banks, Evident has indexed the top 10 banks winning the AI race today.
Leading the race is JPMorgan Chase. Per the Evident Index, the American investment bank continues to “radically outperform” the wider market in AI research, preserving its position as the banking leader in AI innovation. In short, North American banks dominating AI.
What’s more, it performed highest for transparency, thanks to its efforts to uphold responsible AI practices across the organization. In his annual letter to fellow shareholders, CEO Jamie Dimon wrote, "We are completely convinced the consequences will be extraordinary and possibly as transformational as some of the major technological inventions of the past several hundred years. Think the printing press, the steam engine, electricity, computing and the Internet, among others."
The Chief Data and Analytics Officer at JPMC said, “We are proud that our AI talent, insights and solutions were once again recognized as best-in-class and we are committed to continuing to invest in these capabilities to help us serve our clients and communities better.”
After JPMorgan Chase, rounding out the top 3 banks in AI maturity were Capital One in second place, and the Royal Bank of Canada (RBC), in third place.
Per the Evident report, both Capital One and RBC have shown consistent strength across AI patents, research and partnerships throughout 2023. Capital One has superseded JPMorgan Chase in AI development and data engineering talent metrics.
Other high-performing AI banks include Wells Fargo, UBS and CommBank. UBS ranked third across all areas of talent capabilities required to scale AI, while CommBank was the sole representative of Australia in the top 10 banks leading the way in AI.
The Complete Evident AI Index Top Ten is as Follows:
JPMorgan Chase
Capital One
Royal Bank of Canada
Wells Fargo
UBS
CommBank
Goldman Sachs
ING
Citigroup
DBS
North America Dominating the AI Banking Race
Of Evident’s Top Ten, it is notable that six of these banks are based in North America. Of the 15 US banks covered in Evident’s study, eight rank in the top 20. What’s more, four Canadian banks make up the top 20, demonstrating Canada’s strength alongside the US.
Only two UK-based banks, HSBC (ranked 13th), and NatWest (ranked 19th), make it to the top 20 in the leading AI banks, where NatWest has surpassed Barclays.
BNP Paribas (12th) and Société Générale (20th) maintain their positions as the top-performing French banks. In Spain, Santander (21st) is accompanied in the top thirty by BBVA (26th).
Leading Banks in the US From 2021 to 2024, by Artificial Intelligence Patents Filed
Published by Statista Research Department, March 4th, 2024 the report "Leading Banks in the U.S. 2021-2024, by AI Patents Filed" shows that among the largest banks in the United States, Capital One filed the highest number of artificial intelligence (AI) patent applications between 2021 and early 2024. Capital One filed 967 AI patents. It was followed by Bank of America, with 640 applications, and JPMorgan Chase, with 274 applications.
AI in Banking Market Share Will Reach USD 236.70 Billion By 2032
The global artificial intelligence (AI) in banking market size and share is currently valued at USD 19.84 billion in 2023. It is anticipated to generate an estimated revenue of USD 236.70 billion by 2032, according to the study by Polaris Market Research published Feb 7, 2024.
Key Highlights
The development of AI in the banking sector and the evolution of data-gathering technologies among banks are propelling the market's expansion.
The AI in banking market analysis is primarily based on technology, components, application, enterprise size, and region.
North America dominated the market with the largest share in 2023.
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