AML systems expenditure seen at $65bn globally by 2028
Fuelled by AI’s advancements in risk assessment
There is likely to be an 80% surge in total spending on third-party Anti-money Laundering (AML) systems by 2028, reaching $65.62 billion, up from $36.43 billion in 2024, according to ‘Global AML Systems Market 2024-2028’ – a new study conducted by Juniper Research – a leading authority in fintech and payments markets.
The driving force behind this growth is the integration of Artificial Intelligence (AI) to aid AML analysts, reducing false positives and enhancing risk assessment capabilities.
The research underscores a rising trend in the application of AI in an assistive capacity within AML systems.
Persistent demand
These AI co-pilot systems are pivotal in diminishing false positives, thereby refining risk assessment procedures. The demand for this co-pilot role is anticipated to persist, driven by regulatory concerns regarding the transparency of fully automated AI decisions.
Juniper Research has identified a notable expansion in the coverage of AML system vendors beyond traditional financial markets.
The anticipated expenditure on third-party AML systems by professional and other businesses, encompassing legal, real estate, and non-profit sectors, is poised to reach $8 billion globally by 2028, marking a 170% increase from 2024.
To effectively penetrate these burgeoning industries, which lack comprehensive coverage from existing solutions, AML system vendors are advised to tailor their capabilities and form strategic partnerships catering to these segments.
Collaborations needed
Daniel Bedford, the research author, said: “AML system vendors should foster collaborations with data providers to ensure comprehensive coverage in diverse sectors.
“This will empower compliance teams across a broader spectrum of markets to identify high-risk transactions or customers and mitigate the impact of financial crime.”
The newly released Juniper Research suite represents the most extensive evaluation of the AML systems market to date, offering analysis and forecasts spanning over 26,720 data points across 60 countries over five years. It incorporates a ‘Competitor Leaderboard’ and examines current and future market opportunities.
Juniper Research has been a stalwart provider of market intelligence and advisory services to the global financial sector for two decades, boasting collaborations with many of the world’s leading banks, intermediaries, and providers.
Featured image: AML system vendors are advised to tailor their capabilities and form strategic partnerships. Credit: Jason Leung
