BASINGSTOKE, U.K.—A new study from Juniper Research has found global business spend on AI-enabled financial fraud detection and prevention strategy platforms will exceed $10 billion globally in 2027, up from just over $6.5 billion in 2022.
Growing at 57% over the period, the report predicts that as fraudsters become more sophisticated in their attacks, merchants and issuers will become more adept at utilizing highly advanced AI-enabled fraud detection methods to combat crime, Juniper said.
The report further suggests the ability of AI to recognize fraudulent payment trends at scale as being critical to provide improved fraud prevention.
AI-enabled fraud detection and prevention market platforms use AI to monitor transactions and identify fraudulent transaction patterns, seeking to reduce fraud risks by blocking transactions in real-time.
Cost Savings to Drive AI Use
“The research analysis predicts cost savings from AI deployment will be critical to taking system use beyond regulatory compliance,” Juniper Research stated.
The report forecasts growth of 285%, with cost savings reaching $10.4 billion globally in 2027, from $2.7 billion in 2022.
“By leveraging AI, businesses can shift their fraud management resource to where it matters, investigating key issues, rather than dealing with endless false positives, boosting efficiency,” said research author Nick Maynard.
Differentiation Key to Success for Vendors
According to Juniper, the fraud detection report further found that AI is increasingly standard within financial fraud prevention services; making differentiation a challenge.
“The research recommends vendors focus on access to transaction and trends data, as gaining the best level of network intelligence will allow businesses to benefit from fraud information from beyond just their own transactions; significantly improving fraud prevention,” Juniper said. “The research recommends vendors make partnerships with third parties, such as credit bureaus and payment networks, to improve data coverage.””
Notes to Editors
The white paper can be found here.
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