The global market for Artificial Intelligence Model Risk Management is projected to soar from $6.7 billion in 2024 to $13.6 billion by 2030, growing at a CAGR of 12.6%. Drivers of this growth include technological advancements, growing regulatory concerns, and the complex nature of AI models. AI solutions in MRM are increasingly essential for compliance, risk mitigation, and ethical decision-making in sectors such as banking and insurance.
Dublin, March 17, 2025 – A new market analysis reveals that the global market for Artificial Intelligence Model Risk Management is set to grow from US$6.7 billion in 2024 to US$13.6 billion by 2030, marking a compound annual growth rate (CAGR) of 12.6%. This report offers a comprehensive view of market trends, key drivers, and forecasts necessary for making strategic business decisions.
Artificial Intelligence (AI) is transforming model risk management by equipping financial institutions and businesses with advanced technologies to evaluate and mitigate risks tied to AI-driven models. This shift moves away from conventional risk management methods, introducing sophisticated tools that cater to the growing complexity of AI models inherent in critical business functions.
The surge in the AI Model Risk Management sector is propelled by technological advances, increasing regulatory pressures, and the rising intricacies of AI-driven operations. As organizations integrate AI into essential areas like fraud detection and financial forecasting, there is an urgent need for effective risk management, which AI solutions readily address,
Regulatory and ethical motivations are pivotal in this market’s expansion. Stricter government regulations across sectors like banking and insurance demand companies to verify their AI models’ fairness and transparency. Thus, advanced MRM solutions that enhance compliance and auditing capabilities are essential for companies striving to meet these growing standards.
Additionally, the ethical dimensions of AI, especially data privacy, significantly affect the market’s growth. AI model risk management systems assist organizations in navigating the complexities of data misuse and algorithmic bias, fostering trust with consumers and ensuring ethical decision-making.
An increased reliance on AI models for vital functions within banking and insurance fuels rapid adoption in model risk management. Traditional risk management techniques are inadequate for the complexities of modern AI models. Organizations now leverage AI solutions to perform real-time risk assessments and streamline model validation.
Regulatory demands further drive adoption, with government bodies enforcing strict guidelines on AI transparency and fairness. Companies can rely on AI-driven MRM solutions to provide detailed analyses of model performance, ensuring compliance in lending practices and decision-making frameworks.
Organizations are elevating their focus on data integrity and ethical AI use. MRM tools are designed to identify potential biases, reaffirming fairness in model operations while fortifying customer trust and regulatory alignment.
Key insights reveal a significant growth trajectory for AI Model Risk Management Software, projected to reach US$7.9 billion by 2030 with a CAGR of 11%. The services segment shows even more impressive growth with a projected CAGR of 15.1%.
Regionally, the U.S. market is valued at $1.8 billion in 2024, while China’s market is anticipated to grow at a robust CAGR of 11.9%, reaching $2.1 billion by 2030. Noteworthy growth trends also arise from Japan, Canada, Germany, and across the Asia-Pacific space.
The report outlines comprehensive market data and independent analysis, offering insight into annual sales forecasts and regional dynamics. It also highlights major competitors in the field, such as Accenture, C3.ai, and DataRobot, among others. For further insights and updates, visit ResearchAndMarkets.com.
In conclusion, the Artificial Intelligence Model Risk Management market is poised for significant growth as it adapts to the increasing complexities and regulatory demands of today’s business landscape. The trajectory indicates that organizations are not only adopting AI to enhance decision-making but are also prioritizing ethical considerations and compliance, making AI-driven risk management solutions critical for future success. With the market expected to double by 2030, stakeholders must stay informed to navigate this rapidly evolving landscape effectively.
Original Source: www.globenewswire.com
