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Global AML system spend to hit USD $51.7bn by 2028, driven by AI use
Tue, 5th Mar 2024

According to a new study by Juniper Research, global spending on third-party Anti-Money Laundering (AML) systems is set to reach USD $51.7 billion by 2028, marking an 80% increase from USD $28.7 billion in 2024. The driving force behind this significant increase is the role of Artificial Intelligence (AI) in enhancing AML risk assessments and reducing the occurrence of false positives.

The research shows that AML systems are now frequently incorporating AI as an assistive tool, referred to as an 'AI co-pilot'. The purpose of utilising AI this way is to minimise false positives and elevate the accuracy of risk assessments. The study anticipates that this supportive function for AI will likely continue to gain traction due to persisting regulatory concerns surrounding the transparency of fully automated AI-driven decisions.

Juniper Research also identified a shift in the trajectory of AML vendors, who are broadening their scope beyond solely financial markets. Sectors such as legal, real estate, non-profit, and professional industries are now included alongside traditional financial markets. The report predicts that the total global expenditure on third-party AML systems by these expanded business sectors will hit USD $6.3 billion by 2028, displaying a substantial growth of 170% over the four years from 2024.

AML vendors are advised to adapt their offerings and form new partnerships in order to successfully cater to these emerging high-growth markets. As the report's author, Daniel Bedford, suggests, "AML system vendors should extend partnerships with data providers, to allow coverage in different sectors, such as gambling and professional services."

"This will allow compliance teams across a broader range of markets to identify high-risk transactions or customers and minimise the impact of financial crime," said Bedford. 

The study is said to offer the most comprehensive assessment of the AML systems market to date, including the analysis and forecasts for over 26,720 data points across 60 nations over a five-year span. It encompasses a Competitor Leaderboard and a scrutiny of current and future market opportunities.

The findings indicate a significant shift in AML systems, effectuated in part by the growing influence of AI technology and the expanding scope of applicable industries beyond the financial sectors.

The Conductor of the study, Juniper Research, is a respected market research and analysis firm specialising in the technology sector. They provide research, analysis, and consulting services covering various industries such as telecommunications, fintech, digital commerce, and emerging technologies like artificial intelligence, blockchain, and the Internet of Things (IoT).

Juniper Research is known for its comprehensive reports, forecasts, and insights, which are utilised by businesses, government agencies, and other organisations to make informed decisions and strategies in the rapidly evolving tech landscape.