KUALA LUMPUR, Nov 21 (Bernama) -- Global business spending on artificial intelligence (AI)-enabled financial fraud detection and prevention strategy platforms will exceed US$10 billion in 2027 from just over US$6.5 billion in 2022, according to a Juniper Research study. (US$1=RM4.58)
Growing at 57 per cent over the period, the study predicts that as fraudsters become more sophisticated in their attacks, merchants and issuers will become more adept at utilising highly advanced AI-enabled fraud detection methods to combat crime.
According to a statement, the study identified the ability of AI to recognise fraudulent payment trends at scale as being critical to provide improved fraud prevention.
The research analysis predicts cost savings from AI deployment will be critical to take system use beyond regulatory compliance.
The research predicts that the use of AI will result in cost savings and this is critical because it goes beyond meeting regulatory compliance. Instead, it will provide a genuine return on investment in fraud prevention services. Improving models and greater data access will create a virtuous circle of improvement.
Additionally, the fraud detection report also 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 beyond just their own transactions, significantly improving fraud prevention.
It also recommends vendors form partnerships with third parties, such as credit bureaus and payment networks, to improve data coverage.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports, and industry commentaries.
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