Latest News- AI Explainability And Transparency Market: Model-specific is expected to lead the Method segment during 2025-2029

The AI Explainability And Transparency Market is being driven by Intensifying global regulatory scrutiny and the codification of AI accountability

The AI Explainability And Transparency Market is expected to grow at a CAGR of 20.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 12000.9 million. The AI explainability and transparency market is experiencing significant growth due to increasing regulatory demands for accountability in automated systems. Governments and international organizations are enacting legally binding regulations, transforming explainability from a corporate best practice into a mandatory compliance requirement. Notably, the European Union has taken a leading role in technology regulation, imposing financial penalties and operational restrictions on organizations deploying AI in critical sectors such as finance, healthcare, and public services within the EU, if they fail to provide satisfactory explanations for algorithmic decisions. This regulatory trend is driving the need for advanced AI explainability and transparency solutions to ensure regulatory compliance and maintain public trust. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Method
  • Model-specific
  • Model-agnostic
• Deployment
  • On-premises
  • Cloud
• Application
  • Fraud detection
  • Drug discovery and diagnostics
  • Identity management
  • Others
• End-user
  • BFSI
  • Healthcare
  • IT and telecom
  • Automotive
  • Others
• Geography
  • North America
    • Canada
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • South America
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Intensifying global regulatory scrutiny and the codification of AI accountability
• Enterprise imperative to mitigate financial and reputational risk in high stakes AI deployments
• Critical role of trust and user acceptance in unlocking the full potential of AI

However, the market also witnesses some limitations, which are as follows:

• Technical complexity and scalability of explainability methods
• Lack of standardization and regulatory ambiguity
• Inherent trade-off between model performance and interpretability

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Market Scope in AI Explainability And Transparency Market Research Report

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Research Analysis Overview

The AI Explainability and Transparency Market encompasses tools and frameworks for debugging AI models, adhering to ethical guidelines, employing explainable AI techniques, and promoting interpretability methods. Transparency frameworks, bias mitigation strategies, trust building mechanisms, and responsible AI practices are also essential components. AI system evaluation, risk management, and regulatory compliance are crucial for ensuring model validity and data privacy. Additionally, model auditing, predictive model explainability, and system monitoring are key elements, along with data visualization tools, knowledge extraction methods, model version control, documentation, feature selection, performance reporting, and security measures. Explainable deep learning and model complexity reduction are advanced techniques to enhance transparency and trust in AI systems.

Market Research Overview

The IT software market encompasses businesses specializing in application and system software production. Application software companies develop software for specific business or consumer needs, including enterprise, technical, and cloud-based solutions, excluding interactive home entertainment and systems software providers. According to Technavio, the IT software market size is determined by the consolidated revenue of all software providers, including those offering cloud-based solutions. Model interpretability, feature importance ranking, algorithmic transparency, and bias detection methods are crucial components of advanced software offerings, ensuring business decision-makers have clear, unbiased insights.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/