AI in Finance: Is it Hype or the Real Deal in 2025?

let’s talk about this AI thing in finance. Seems like everyone and their cousin is shouting about it, doesn’s it? But is it actually changing anything, or is it just another flash in the pan? I'm not saying it's all smoke and mirrors, mind you. But let's be clear, it's a bit more complicated than the marketing folks want you to believe.

The USD 1.5 trillion market by 2030. That's a lot of money, I’m not going to lie. But numbers can be misleading, can’t they? It's like saying everyone's going to buy a flying car just because they're talking about it. The reality is, adoption is a slow burn, especially in a field as regulated as finance. And that's a good thing, frankly. We don't want robots making bad decisions with our money.

The biggest thing I’m seeing is this agentic AI. Apparently, it’s the next big thing. These are AI systems that can, supposedly, make decisions on their own. Sounds a bit scary, doesn't it? They predict that 25% of companies will be piloting these things by 2025, growing to 50% by 2027. I’m skeptical, but I’m keeping an eye on it. It’s like that whole blockchain craze a few years back – lots of promise, but the actual implementation has been… well, let’s just say it’s been a journey.

I'm reading about companies like BBVA partnering with OpenAI. ChatGPT helping employees. That's interesting, but it’s still augmentation, isn't it? It's helping people do their jobs better, not replacing them entirely. It's like giving a carpenter a power saw – it makes the job faster, but the carpenter is still the one doing the work.

Embedded finance is another thing everyone’s talking about. Apparently, it’s growing at a compound annual growth rate of 36.41 percent. That's a lot of growth, but it’s also a bit vague, isn’t it? It just means integrating financial services into other platforms. Froda in Europe, for example, is offering business loans through their platform. It's convenient, I suppose, but it also raises questions about data security and consumer protection.

The article mentioned cryptocurrency. The market is projected to reach USD 45 billion by 2025. That’s a big number, but it’s still a small fraction of the overall financial market. Avalanche Visa Card and JustGiving accepting crypto – that’s interesting, but it’s still niche. Regulatory shifts are key, the article says. MiCA in Europe, for example. That’s a good thing, regulation is necessary. We need to protect investors, don’t we?

Cybersecurity is a big concern, of course. Ransomware, social engineering, AI-powered cybercrime. It’s a scary world out there. Biometric authentication is one area of progress. ANNA using biometric re-authentication. NatWest piloting fingerprint technology-enabled cards. It’s getting more sophisticated, but so are the bad guys. Revolut's 'Revolut Pay' platform is leading the way with enhanced fraud protection. It’s a constant arms race, isn’t it?

The article also talked about financial wellness. Robo-advisors managing over USD 2 trillion in assets by 2025. That’s a lot of money, but I still think people need human advisors, especially when it comes to big decisions. Lunar Way’s budgeting tool, Monzo’s Split feature, BucksTrybe’s community savings accounts. It’s all about making finance more accessible, I suppose. The UK FinTech Pledge aims to build financial resilience. That’s a good goal, but it’s a long way off.

Climate FinTech is another thing. Zero launching a sustainable money app. ING partnering with Cogo. It's all about aligning finance with environmental goals. It’s a nice idea, but I wonder if it’s just greenwashing. We need to be careful about that, don’t we?

So, is AI in finance hype or the real deal? I’m leaning towards the latter, but with a healthy dose of skepticism. It’s changing things, no doubt, but it’s not going to revolutionize the financial world overnight. It’s a slow burn, a gradual evolution. And that’s probably a good thing. We need to be careful about rushing into things. We need to think things through. We need to protect investors. And we need to make sure that AI is used responsibly.

The winners will be those who blend AI-driven intelligence with contextual decisioning, agile operating models and customer-centric design. Sounds fancy, doesn's it? But that’s essentially what it boils down to. It’s about using technology to make things better for people. And that’s a goal worth striving for, I think.