AI (artificial intelligence) model risk management encompasses the policies, practices, tools and expertise employed by organizations to identify, assess, mitigate and monitor risks associated with deploying artificial intelligence and machine learning models. The primary users of these solutions include data scientists, risk officers, compliance teams and IT stakeholders who require assurance that automated decision systems behave reliably, fairly and securely.
The AI model risk management market consists of sales by entities (organizations, sole traders and partnerships) of AI model risk management products and services that are used during model development, deployment and live operation, where they interact with complementary technologies like model development platforms, data governance systems, explainability tools and cyber-security solutions.
The global AI model risk management market was valued at $3,327.49 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 13.00%.
Rising Demand For Cloud Adoption
Rising demand for cloud adoption fueled the growth of the AI model risk management in the historic period. As enterprises adopted multi-cloud and hybrid environments to support AI initiatives, data became fragmented across public, private and on-premises systems, complicating AI model governance and oversight. This complexity required scalable and adaptive risk management frameworks. A data fabric architecture supported AI model risk management by offering a unified data layer that ensures seamless data integration, movement and access critical for tracking data lineage, monitoring model inputs and ensuring regulatory compliance. It enabled real-time access to distributed data sources, allowing continuous monitoring and validation of AI models, which enhanced transparency, operational agility and model accountability without disrupting existing infrastructure. For instance, in December 2023, according to Eurostat, a Luxembourg-based statistical office of the European Union, 45.2% of European Union (EU) enterprises purchased cloud computing services in 2023, which represents a 4.2 percentage point rise compared with 2021. Therefore, the rising demand for cloud adoption drove the growth of the AI model risk management market.
Development Of Digital Identity To AI Agents
Major companies operating in the AI model risk management market are focusing on developing innovative products such as digital identity to increase their market presence in the market. Digital identity refers to the digital representation of an entity, such as a user, device, or system, used to authenticate and authorize access to AI models, data, or infrastructure. Managing digital identities is critical to prevent unauthorized access, data misuse and model manipulation. For example, in May 2025, Microsoft Corporation, a US-based technology company, introduced Entra Agent ID, granting unique digital identities to AI agents enabling role-based access controls, credential revocation and full action logging. By assigning unique digital identities to AI agents, organizations can track, monitor and authenticate every action taken by AI systems. This parallels user identity management for humans, which is foundational for accountability and compliance. The ability to revoke or update an agent's credentials helps rapidly respond to emerging risks, such as security breach or discovery of unethical agent behavior.
The global AI model risk management market is concentrated, with large players operating in the market. The top 10 competitors in the market made up 41.97% of the total market in 2023.
AI Model Risk Management Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global AI model risk management market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for AI model risk management? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The AI model risk management market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider AI model risk management market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by component, by deployment mode, by organization size, by application and by industry vertical.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by component, by deployment mode, by organization size, by application and by industry vertical in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for AI model risk management providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Component: Solution; Service
- 2) By Deployment Mode: Cloud-Based; On-Premise
- 3) By Organization Size: Large Enterprises; Small Medium-Sized Enterprises (SMEs)
- 4) By Application: Model Documentation; Model Governance; Model Monitoring; Model Validation
- 5) By Industry Vertical: Banking, Financial Services & Insurance; Healthcare; IT & Telecommunications; Retail E-Commerce; Other Industry Vertical
- Companies Mentioned: International Business Machines Corporation; Microsoft Corp.; Google LLC; SAS Institute; FICO Corp.
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; AI model risk management indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.