Artificial intelligence (AI) is set to revolutionize identity verification, departing from outdated security approaches and amplifying efforts to prevent digital fraud before it occurs. AI integration helps us to improve our security measures and provide the best user experience. This double whammy spurs massive momentum in the identity verification market. This evolution is helping to address the increasing threats from the technology behind deepfake content, as well as synthetic identity fraud. It promotes a safer digital environment for businesses and consumers alike.
AI's Impact on Fraud Prevention
Companies that have implemented AI to prevent fraud have seen incredible increases in all important metrics. A significant 75% drop in fraud-related losses demonstrates AI’s ability to reduce the impact of fraud on finances. Machine learning—an AI—has led to a stunning 85% improvement in detection accuracy. With this innovation, enterprise businesses can spot and snuff out bad fraud more accurately and efficiently. More significantly, AI has helped achieve a 68% reduction in operational costs, driving efficiency.
Ajay Trehan, Founder and CEO of AuthBridge, describes the urgency of transformative change like this. He has a different vision for the future of identity verification, one that’s more about preventing fraud in the first place. This security paradigm shift, driven by AI-enhanced technology, is a departure from conventional reactive security responses.
The Rise of Continuous Monitoring
The identity verification landscape is shifting away from one-time authentication processes toward systems based on ongoing monitoring. This shift allows for a much more real-time understanding of what your users are doing. More importantly, it enables instant detection of anomalies that can signal fraud. AI algorithms process billions of points of data—including behavioral biometrics—to differentiate between the good guys and the bad guys.
Behavioral biometrics is an important part of this ongoing monitoring process. AI keeps track of how users engage on digital platforms. It flags for review minor deviations that might suggest a willful effort to defraud. This ongoing evaluation is what allows security controls to remain proactive, even post-authentication. Second, it builds in an additional layer of safety against emerging threats.
Market Growth and Future Trends
India’s electronic know-your-customer market is exploding. The root of this growth is the increasing need for robust security protocols and frictionless digital journeys to the consumer. Our market is projected to grow by leaps and bounds. It will grow from USD 451.1 million in 2024 to USD 1,719.7 million in 2033, for a phenomenal compound annual growth rate (CAGR) of around 16.1%. This boom is driven by rapid adoption of digital technologies in every industry.
AI’s growing role in the identity verification process with identity pools is the biggest driver behind this market growth. AI-based solutions not only enhance security and accuracy, but reduce costs of operations. This is why businesses that want to protect themselves against fraud are super enamored by these solutions. We all know that AI technology is advancing quickly. Even more importantly, it will impact the future of our entire identity verification landscape.
