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.

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.

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.