Have you noticed how every second headline today shouts about AI in finance? It almost feels like every bank, fintech, or insurance company is suddenly powered by artificial intelligence. But wait, how many financial firms actually use AI in India in 2025? Not the hype, but the real numbers.
Let’s clear this doubt, step by step.
What Does “Using AI” Actually Mean?
When a company says it “uses AI,” it could mean three very different things:
- Strategic Focus: This is the earliest stage of adoption. Companies start talking about AI in their plans, budgets, and meetings. At this point, it’s more of a commitment than a reality—a sign that they know AI can’t be ignored. For example, banks or NBFCs may announce digital transformation strategies or set aside budgets to explore AI. But in daily work, nothing much changes yet. It’s like a promise on paper, showing intent to stay competitive.
- Pilots/Trials: This is when things get practical. Firms begin small experiments to see where AI fits. Examples include chatbots for customer queries, AI-based credit scoring, or limited fraud detection tools. These pilots usually run in controlled environments so companies can test results without risking big systems. It’s like dipping a toe in before jumping in fully. Some trials scale up, while others are dropped if they don’t add enough value..
- Production Use: This is the stage where AI becomes part of core business operations. It’s no longer a test—AI is now live and fully integrated. Banks use it for fraud detection in real-time, insurers for claims automation, and AMCs for algorithmic trading and portfolio management. These systems help reduce risk, cut costs, and improve customer service. By 2025, most large Indian banks and fintechs will be here, making AI a backbone of their growth rather than just an add-on.
By 2025, most leading banks, insurers, and fintechs in India will use AI in full operations, directly tied to business goals.
Mapping India’s Financial Sector
Before asking how many financial firms use AI, let’s first look at the universe of players in India’s financial sector:
- Banks (Scheduled commercial): ~135
- Insurance companies: ~61
- NBFCs (registered): ~9,306
- Fintech startups: ~9,000+
- AMCs (Mutual fund houses): ~45
Reference: Dun & Bradstreet, India’s Leading BFSI & FinTech Companies 2025, Methodology section, pages 6–8.
Now that we know the size of the playground, let’s see who’s actually playing with AI.
Adoption Rates in India (2025)
Fresh surveys and market reports reveal some eye-opening stats:
- 90% Have a Plan: Almost 9 out of 10 firms in banking, insurance, and fintech (BFSI) have at least included AI in their strategy. It may be part of their roadmaps, budgets, or future goals—even if not fully in use yet.
- 60–70% Using AI Actively: Around two-thirds of these companies have already moved beyond planning. They are running AI for important tasks like spotting fraud in real-time, checking creditworthiness before lending, or offering 24/7 support through chatbots.
- Big vs. Small Players: Large banks and fintech startups are moving much faster—they have the money, talent, and systems to push AI at scale. On the other hand, many smaller NBFCs and older insurance companies are still catching up, mainly because of high costs, old systems, and scattered data.
Source: Scielo Brazil – “Artificial intelligence adoption in the Indian BFSI sector: an empirical assessment” (August 2025), see adoption rate findings in Sections 5 and 7.
AI Adoption in Indian Finance (2025)
Scenario estimates-
Source: RBI Free-AI Committee report
📌 Unique deduplicated estimate: ~6,000–8,500 firms are live with AI systems.
“In 2025, AI is no longer optional — it’s mainstream in Indian finance.”
What Do These Numbers Mean?
The adoption map isn’t uniform.
- Leaders: Big banks and fintechs are ahead of the curve. They are investing heavily and using AI in important areas like risk models, fraud detection, compliance, and even predicting market trends. For them, AI is not just a side project, it’s part of their core strategy.
- Followers: Many smaller NBFCs and insurance companies are finding it hard to keep up. High costs, limited access to good data, and slower regulatory guidance make it tough for them to adopt AI at the same speed. As a result, they are moving more cautiously, often using AI only in small or basic ways.
So, while the numbers sound big, the depth of AI use differs widely.
Real-World Use Cases
A few examples bring the story alive:
- Banks: Chatbots were the beginning; today, full-fledged AI fraud monitoring is the norm.
- Fintechs: AI-driven credit scoring using alternative data is reshaping inclusive lending.
- Insurers: AI helps in claims automation and real-time fraud detection.
- AMCs: Investment firms experiment with AI-powered quant strategies for portfolio decisions.
Even with all this progress, roadblocks remain:
- Regulations: Bodies like RBI and SEBI are still working on clear rules for how Artificial Intelligence should be used in finance. Until these guidelines are finalised, many firms hesitate to go all in.
- Talent Shortage: There aren’t enough skilled Artificial Intelligence engineers, data scientists, and domain experts. Companies often struggle to find the right people who can design, train, and maintain AI systems.
- Legacy Systems: Many banks and financial institutions still run on old technology. Plugging Artificial Intelligence into these outdated systems is complex, expensive, and sometimes slows down adoption.
- Ethics: AI decisions can sometimes be biased or hard to explain. Questions about fairness, data privacy, and transparency continue to raise concerns, making companies cautious.
Looking Ahead – The Next 3–5 Years
Expect the next wave of changes:
- Generative AI: Smarter customer interactions and workflow automation.
- Clearer Regulations: RBI, IRDAI, and SEBI will bring structured Artificial Intelligence frameworks.
- Fintech-Traditional Partnerships: Collaborations will unlock new AI-powered services across the sector.
By 2028, AI won’t just support operations, it will define how financial firms compete.
Beyond “How Many”
So, how many financial firms use AI in India? The 2025 snapshot says anywhere between 6,000–8,500 firms have AI live in production. But the bigger story is not just how many, it’s how deeply.
AI has moved from being a “fancy add-on” to becoming the backbone of India’s financial ecosystem. And while 2025 is clearly the year of adoption, the real race begins in 2026 and beyond, not who uses AI, but who uses it best.
Just like finance, Artificial Intelligence I also needs clarity and structure. If you’re someone aiming to build a strong career in finance with future-ready skills, learning AI can give you a big advantage. At The WallStreet School, our AI for Finance Online (Live) Course is designed to make these advanced concepts simple, practical, and career-focused without the confusing terms.
People Also Asked :-
- How many finance companies use AI worldwide?
Nearly 70% of finance companies globally use AI for fraud detection, risk management, lending decisions, and customer support services. - Is AI replacing jobs in finance sector?
AI is not completely replacing jobs; it automates routine tasks while creating new opportunities in analytics, compliance, and financial technology. - How are banks using AI in 2025?
Banks use AI for credit scoring, fraud monitoring, algorithmic trading, personalized customer service, faster loan approvals, and compliance automation. - What percentage of companies are using AI globally?
Around 60–65% of companies worldwide actively use AI in areas like operations, marketing, customer service, and decision-making. - How many financial firms use AI in India 2025?
In India, about 60–70% of financial firms leverage AI for fraud checks, credit risk models, and improved customer experience.
