August 9, 2019
Almost everyone with a personal computer carries a piece of artificial intelligence (AI) interface in the form of Siri or Cortana. If not, you might have interacted with one on your smartphone today. These are the most common touchpoints between consumers and AI. Needless to say, that is just the tip of the iceberg. AI penetration has been impactful in B2B setups or at the back-end of many services that we use every day. According to Gartner, the business value created by AI will reach $3.9 trillion in 2022.
The number of AI patents have grown exponentially in the best part of this decade. Interestingly, Asian companies are slightly ahead of any other region in filing new AI patents. A high percentage of these patents are filed in transportation, telecom, and information security businesses. Any FinTech insider can tell you that all of these industries are finding an overlap with the financial services business. For example, a telecom company getting a neobanking license or ride-hailing company integrating payments and lending in its business.
The financial services industry is not too behind in using the AI. However, much of it is used by disruptive FinTech startups. AI for finance has produced some wonderful solutions that simplify and automate various functions such as credit scoring for lending, regulatory and compliance solutions that become RegTech, personal finance management solutions, quantitative & asset management, market intelligence, and many other areas of finance.
To understand the geographic distribution of these AI-driven companies, we looked into our MEDICI Database of startups. It was very easy to spot that the AI-driven FinTech are concentrated in the US. Also, most of the top-funded FinTechs are based out of the US. Clearly, the US may or may not be filing tons of AI ...