Artificial intelligence (AI) or human intelligence in machines is a big game-changer in the world of technological transformation. AI is fast looking into the issue of financial management across the world, redefining how companies forecast, mitigate risks, and make strategic decisions. AI in the financial service industry worldwide is expected to grow to an estimated $27.92 billion by 2026, and 80 per cent of banks and other financial institutions are adopting AI for credit scoring, fraud detection, or predictive analytics. These tools can reduce onboarding times by as much as 60 per cent, while increasing portfolio returns by 10-15 per cent, thereby reaffirming the strategic importance of AI in operational efficiency and competitive differentiation.
Many institutions have already automated operations like regulatory compliance, anomaly detection and customer service processes, so have surged the adoption rates. A 2025 survey by Gartner shows 59 per cent of finance leaders already use AI in operating their finance functions, and 67 per cent are further optimistic regarding their AI investments compared to a year ago. This shows a growing confidence, even if there are still challenges like data quality and talent scarcity.
For this South Asian nation, the current trajectory offers considerable potential and prospects. The country’s smart finance and embedded finance ecosystem is projected to reach approximately $3.78 billion by 2026, with growth projected at a 12.6% per cent CAGR through the year 2030.
Digital payment ecosystems and mobile financial services, advanced by systems like the Interoperable Instant Payment System, are paving the way for open or generative AI-driven risk assessment, credit evaluation and fraud prevention. These services are the demand of the hour.
Moreover, multiple academic studies are highlighting that AI will play a vital role in strengthening anti-money-laundering systems and adverse media screening, especially where multilingual capabilities are involved, supporting more effective transaction monitoring, customer risk profiling, sanctions screening and regulatory reporting within the banking and financial sector in Bangladesh.
Apart from banking, there are several industries in Bangladesh that have greenfield opportunities to adopt AI. Microfinance entities can adopt AI for alternative credit scoring and early warning systems for defaults, while capital market sectors can adopt AI for market surveillance and portfolio risk analyses. The insurance industry can adopt AI for automatic processing of insurance claims and claim fraud analysis, and financial management sectors can adopt AI for expenditure analyses and risk monitoring for procurement.
Then again, financial institutions cannot afford to hold out from investing in talent, modern data infrastructure and AI-boosting governance frameworks. The global trend is very clear now. Those who are choosing to embed AI into financial management will realise significant gains in efficiency, insight and resilience, while those who choose to stay away from it risk competitive obsolescence. It is, therefore, imperative for the government authorities concerned to manage financial issues with the help of human intelligence in machines.
The writer is a former regional controller, Microsoft, South-East Asia. Email: [email protected]
