Latest News- AI-Model Risk Management Market: Fraud detection is expected to lead the Application segment during 2025-2029

The AI-Model Risk Management Market is being driven by Intensifying global regulatory scrutiny and compliance mandates

The AI-Model Risk Management Market is expected to grow at a CAGR of 14.8% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 5477.3 million. The global AI-model risk management market is witnessing a significant evolution, moving from standalone, purpose-built solutions to integrated, end-to-end governance platforms. As businesses expand their AI initiatives from a limited number of models to a diverse and extensive portfolio, the requirement for a centralized, unified system has become indispensable. Modern organizations seek comprehensive platforms capable of managing the entire model lifecycle, encompassing pre-development ethical assessments and data validation, development and pre-deployment testing, ongoing production monitoring, and eventual model retirement. This transition signifies the market's progression from a collection of specialized tools for tasks like bias detection or explainability to a full-fledged enterprise software category. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Application
  • Fraud detection
  • Regulatory compliance monitoring
  • Model governance and validation
  • Customer segmentation and targeting
  • Others
• Component
  • Software by type
  • Software by deployment mode
  • Services
• Type
  • Operational risk
  • Compliance risk
  • Strategic risk
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Europe
    • Germany
    • UK
    • France
  • Middle East and Africa
  • South America

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 compliance mandates
• Proliferation and escalating complexity of AI, spearheaded by generative AI
• Heightened corporate awareness of severe reputational and financial risks

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

• Acute scarcity of multidisciplinary talent
• Unprecedented pace and complexity of generative AI evolution
• Lack of standardized methodologies and universally accepted metrics

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Market Scope in AI-Model Risk Management Market Research Report

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Research Analysis Overview

The AI-Model Risk Management Market encompasses various techniques and tools for ensuring the reliability, security, and ethical use of artificial intelligence systems. Key components include drift detection methods for identifying model performance changes, model validation processes for assessing risk and ensuring compliance, and model monitoring tools for tracking performance and detecting issues. Other critical elements include bias quantification, explainable AI techniques, system integrity checks, and data governance policies. Regulatory guidelines, model security audits, and ethical considerations are also essential for effective risk management. Additionally, performance benchmarks, reliability assessments, model uncertainty, data integrity checks, error analysis, system resilience, data privacy, model validation metrics, and audit trail management are crucial for maintaining the integrity and reliability of AI models throughout their lifecycle. Risk mitigation controls, model retraining, and the model deployment process are also important aspects of AI-Model Risk Management.

Market Research Overview

The AI Model Risk Management market is a segment of the larger IT software industry, focusing on companies providing solutions for detecting model bias, employing explainability techniques, monitoring data drift, and measuring model accuracy metrics. These firms specialize in developing and producing software designed to mitigate risks associated with artificial intelligence and machine learning models in business applications. Technavio's market analysis includes revenue generated by companies offering such solutions, encompassing both on-premises and cloud-based offerings. This market size calculation excludes firms primarily engaged in interactive home entertainment, database management software, or systems software.. 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/