By 2024, businesses will spend $127 billion on technology to aid them with regulatory compliance, according to a new report from Juniper Research. RPA will figure prominently in that spending, especially by businesses in the insurance industry and those engaged in KYC.
According to the U.K.-based research firm, insurers will spend $634 million on RPA solutions in 2024, up from $184 million this year.
For financial institutions and businesses involving property sales, RPA and other AI solutions will result in cost savings over the next five years approaching $1 billion.
“As the financial systems of developing regions become more advanced, so will their needs for regtech solutions; these regions will have increased regtech spending in the longer term,” the report’s authors wrote. The report recommends “that organizations invest in the cost-saving potential of AI and cautions that although AI has vast potential, its use must be in line with overall business objectives or deployments will invariably fail to meet expectations.”