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AI Model Risk Management Market Size

Report ID: GMI11833
Published Date: Oct 2024
Report Format: PDF

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AI Model Risk Management Market Size

The global AI model risk management market size was valued at USD 5.3 billion in 2023 and is projected to grow at a CAGR of 11.1% between 2024 and 2032. The increasing regulatory compliance requirements worldwide are expected to drive the market growth. As governments and regulatory bodies impose stricter guidelines regarding the use of AI, organizations are compelled to adopt robust risk management frameworks to ensure compliance. AI model risk management solutions help organizations automate monitoring and validation processes, enabling them to demonstrate compliance effectively while minimizing the risks associated with non-compliance.

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For instance, In July 2024, the National Institute of Standards and Technology (NIST) launched Dioptra, a new open-source software tool for evaluating security risks in AI models. This tool helps businesses and government agencies to assess and verify AI tools. The regulatory landscape propels the demand for advanced AI-driven tools that can analyze model performance and provide actionable insights.

AI Model Risk Management Market Report Attributes
Report Attribute	Details
Base Year:	2023
AI Model Risk Management Market Size in 2023:	USD 5.3 Billion
Forecast Period:	2024 to 2032
Forecast Period 2024 to 2032 CAGR:	11.1%
2032 Value Projection:	USD 13.3 Billion
Historical Data for:	2021 - 2023
No. of Pages:	160
Tables, Charts & Figures:	200
Segments covered:	Component, Deployment Model, Risk, Application, End Use
Growth Drivers:	Increasing adoption of AI technologies The shift towards data-driven decision-making The need for robust risk management Growing demand for enhanced governance frameworks
Pitfalls & Challenges:	Lack of skilled professionals Data privacy and security concerns

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The increasing complexity of AI models being deployed is anticipated to propel the AI model risk management market growth. As organizations adopt more sophisticated AI technologies, including deep learning and ensemble methods, the associated risks also escalate. Organizations must ensure that these models are transparent, interpretable, and reliable, which requires comprehensive validation and monitoring. By leveraging advanced analytics and automated monitoring, businesses can better understand model behavior and make informed decisions regarding their deployment.

Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of AI model risk management reached USD 5.3 billion in 2023 and is set to grow at a CAGR of 11.1% from 2024 to 2032, driven by increasing regulatory compliance requirements worldwide.

The model risk segment held around 31% of the market share in 2023, led by the increasing complexity of AI and machine learning models, necessitating robust risk management practices.

The U.S. market accounted for over 75% of the market share in 2023 and is poised to reach around USD 2.5 billion by 2032, propelled by the widespread use of AI across sectors such as finance, healthcare, and insurance, and the imposition of stricter regulatory guidelines.

The industry features key players such as Databricks, DataRobot, Empowered Systems, FICO, Google, IBM, MathWorks, Microsoft, SAS, and ValidMind.