What Is The Current and Historic Market Size Analysis Of The AI Model Risk Management Market?
The ai model risk management market has seen considerable growth due to a variety of factors.
• The market for AI model risk management has seen swift expansion in the recent past. The market is projected to rise from $6.17 billion in 2024 to $7.17 billion in 2025, following a compound annual growth rate (CAGR) of 16.2%.
Factors contributing to the growth during the historic period include the broad application of AI models in international markets, increased concerns about insurance and liability related to AI model failures, heightened understanding among involved parties about the possible dangers of AI models, and the industry-wide adoption of AI. This has highlighted the need for sturdy risk management structures, and has led to strides in enhancing operational efficiency through efficient control and regulation of AI model risks.
What Is The Forecast For The AI Model Risk Management Market Size Evolve over the Forecast Period?
The ai model risk management market is expected to maintain its strong growth trajectory in upcoming years.
• In the near future, the AI model risk management market is predicted to experience accelerated growth. It is projected to swell to $12.96 billion by 2029, expanding at a 16.0% compound annual growth rate (CAGR). The forecast period's expansion can be credited to factors such as the rising need for AI model management due to increased regulatory scrutiny, more executive and board supervision of AI model risk management approaches, an elevated understanding of AI's ethical implications, and the dangers related to cyber threats targeting AI models. Major progressions expected during this period include rapid improvements in AI technologies, the incorporation of AI model risk management into wider enterprise risk management structures, the invention of approaches for quantifying and evaluating the risks of AI models, and the persistent refinement and adaptation of AI model risk management strategies.
What Factors Are Driving Growth In The AI Model Risk Management Market?
The rising understanding of cyber security dangers is anticipated to boost the expansion of AI model risk management in the future. These cyber threats, which involve deleterious activities targeting computer systems to filch, harm, or cause disruption to data such as malware, phishing, and DoS attacks, pose serious risks to digital security. The increasing dependency on digital technologies and the broadening attack surface for cybercriminals contribute to an uptick in cyber security threats. The role of AI model risk management in mitigating these threats is crucial as it can identify weaknesses, forecast possible attacks, and heighten safety measures. For instance, data from the UK Department for Digital, Culture, Media, and Sport in July 2022 showed that 39% of UK businesses were subjected to a cyber-attack in the previous year, costing medium and large businesses an average estimated $5,369.68 and $24,878.68 for material results like monetary or data loss. Hence, the escalating cognizance of cyber security threats is fueling the advancement of the AI model risk management market.
How Is The Global AI Model Risk Management Market Divided Into Key Segments?
The AI model risk managementmarket covered in this report is segmented –
1) By Component: Solution, Service
2) By Deployment Mode: Cloud-Based, On-Premise
3) By Organization Size: Large Enterprises, Small And Medium-sized Enterprises (SMEs)
4) By Application: Model Documentation, Model Governance, Model Monitoring, Model Validation
5) By Industry Vertical: Financial Services, Healthcare, Insurance, Telecommunications
Subsegments:
1) By Solution: AI Model Validation Tools, AI Model Monitoring and Performance Tracking, Risk Assessment and Analytics Software, Explainability and Transparency Tools, Model Governance and Compliance Solutions
2) By Service: AI Model Risk Consulting Services, Model Risk Assessment and Evaluation Services, AI Model Auditing and Compliance Services, AI Model Training and Optimization Services, Ongoing Monitoring and Support Services
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What Trends Are Reshaping The Future Of The AI Model Risk Management Market?
Key players in the AI model risk management market are concentrating on introducing innovative solutions, such as advanced AI models, in their quest to stay ahead in the competition. These advanced AI models are intricate artificial intelligence systems built to execute intricate tasks with high precision and efficiency. Typically, these models employ state-of-the-art strategies in machine learning, deep learning and natural language analysis to process a large volume of data, predict outcomes and streamline decision-making procedures. As an example, Zendata, an American security platform developer, introduced an advanced AI model and data usage scanning platform in July 2024 to strengthen governance, bias detection, and compliance across enterprise AI frameworks. This visionary product offers extensive governance, bias detection, and compliance functionality that meets the rising demand for transparent and fair AI implementation in enterprises.
Who Are the Key Players In The AI Model Risk Management Market?
Major companies operating in the AI model risk management market are:
• Amazon.com Inc.
• Google LLC
• Microsoft Corporation
• Accenture plc
• International Business Machines Corporation
• Deloitte Touche Tohmatsu Limited
• PricewaterhouseCoopers International Limited
• Ernst & Young
• Oracle Corporation
• KPMG International Limited
• SAP SE
• Moody's Analytics
• Sas Institute Inc
• DataBricks Inc
• Teradata Corporation
• Palantir Technologies Inc.
• Fair Isaac Corporation
• The MathWorks Inc
• DataRobot Inc
• H2O.ai
• LogicGate
• LogicManager
What Are The Regional Insights Into The AI Model Risk Management Market?
North America was the largest region in the AI model risk management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI model risk management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
