AI Model Risk Management Market to Touch USD18.89 Billion by 2030

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The AI Model Risk Management Market size was valued at USD10.2 Billion in 2024 and is projected to reach USD18.89 Billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 10.79% during the forecast period, i.e., 2025-30, cites MarkNtel Advisors in the recent research report.

Various factors are associated with the market growth. One of the major reasons is the high adoption of AI across numerous industries for critical decision-making processes. The potential impact of errors, biases, or failures becomes significantly more serious with organizations deploying more advanced & autonomous systems. Hence, various laws & regulatory frameworks are being developed by policymakers in response to these rising concerns at the global level, which is driving the market. This mandates organizations to show transparency, fairness, and accountability in the development & deployment of AI models. Additionally, the growing complexity of AI models further requires robust oversight to prevent unintended consequences, operational disruptions, or ethical violations, especially in deep learning and large-scale language models. This is further driving the market growth. Also, there is an increasing demand for AI model risk management in anti-money laundering, as various cases can easily be flagged using these models by financial firms & security agencies globally.  

Moreover, various trends are shaping the market dynamics, showing how AI risk is managed.  There is a growing emphasis on the explainability and interpretability of AI, one of the foremost trends changing the industry. Industry players are introducing various tools & techniques to make AI-based decisions understandable to both technical & non-technical shareholders. Also, the integration of this with modern enterprise risk management strategies is further helping businesses in monitoring, controlling, and reporting on model risk in a structured and consistent way. There is a movement towards standardizing practices across industries and regions that makes it easier for organizations to adopt shared approaches to AI governance.

Additionally, the market offers numerous opportunities for growth & innovation. Companies offering AI auditing, validation, and compliance services are finding new markets among firms that lack in-house expertise. The popularity of industry-specific risk management solutions is growing rapidly in sectors where AI is used in sensitive or high-stakes applications. The development of global and industry standards is creating various collaboration opportunities between researchers & technology providers, coupled with regulatory bodies. Organizations that can align their AI practices with these evolving standards are better positioned to gain the trust of the public.

However, various challenges are impeding the growing market. The risk of cybersecurity has grown intensively with the market growth that creates losses of data & sometimes leads to financial crises. This involves various threats, including data poisoning and model inversion attacks. The execution capacity is becoming limited due to the lack of skilled professionals in both machine learning and regulatory compliance. As compared to traditional financial models, quantifying risks like bias, drift, or adversarial vulnerabilities remains complex. Moreover, cost barriers remain high for small and mid-sized enterprises that lack the infrastructure for comprehensive risk oversight. Without affordable and scalable tools, achieving its widespread adoption may remain out of reach for many organizations, further stated the research report “AI Model Risk Management Market Analysis, 2025.”

AI Model Risk Management Market Segmentation Analysis

Fraud Detection & Risk Reduction Prospers Most in the Global AI Model Risk Management Market

Based on application, the market is primarily comprised of Fraud Detection and Risk Reduction, Data Classification and Labelling, Sentiment Analysis, Model Inventory Management, Customer Segmentation and Targeting, Regulatory Compliance Monitoring, and others. Fraud Detection and Risk Reduction hold the largest share of the global AI Model Risk Management market, accounting for roughly 27%.  This is because of their critical role in safeguarding financial systems & operational integrity.  These are highly adopted in the BSFI & E-commerce industry to analyze suspicious activities, allowing them to prevent financial losses by controlling the damage in real-time. These applications use advanced algorithms to analyze large volumes of transactional data that help to detect anomalies and adapt to evolving fraud tactics. This makes it a priority for organizations that intensively create market demand.  As cyber threats and financial crimes grow in complexity, the demand for AI-driven fraud mitigation tools continues to outpace other applications.

North America Holds the Largest Share of the Global AI Model Risk Management Market

North America dominates the Global AI Model Risk Management Market. It holds approximately 38% of the global market. This growth is prominent in the region due to its strong regulatory environment, coupled with highly advanced technological infrastructure. This helps in the high adoption of AI model risk management across various sectors, majorly in defense, finance & healthcare. The region is home to numerous leading financial institutions and tech companies that use complex AI models requiring rigorous risk oversight. Regulatory agencies in the US, like the Federal Reserve and OCC, have issued detailed guidance on model risk management that prompts firms to establish robust governance frameworks. Moreover, complete transparency & accountability are expected in AI-driven decision-making by North American companies due to the rising legal and reputational pressures. This has led to the early and widespread adoption of AI MRM tools in the region. North America will continue to dominate the market during the forecast period.

Competitive Landscape

Alteryx, Amazon Web Services, Accenture, DataBricks, Google, Delteck, International Business Machines Corporation, Congruity360, Wolters Kluwer N.V., LogicManager, LogicGate, Oracle, Microsoft, ModelOp, SAS Institute, UpGuard, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report                                  

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?