Ai Model Risk Management Market
AI Model Risk Management Market Forecasts to 2032 – Global Analysis By Offering (Software and Services), Deployment Model (On-premise, Cloud-based and Hybrid), Risk Type, Application, End User and By Geography
According to Stratistics MRC, the Global AI Model Risk Management Market is accounted for $6.54 billion in 2025 and is expected to reach $17.31 billion by 2032 growing at a CAGR of 14.9% during the forecast period. The processes, frameworks, and controls used to identify, evaluate, track, and reduce risks related to the creation, application, and deployment of artificial intelligence models are collectively referred to as AI Model Risk Management (AI MRM). These risks may include operational failures, bias, overfitting, a lack of explanation, problems with data quality, and non-compliance with regulations. Thorough model validation, ongoing performance monitoring, model design and assumption documentation, edge case stress testing, and the establishment of governance frameworks to guarantee accountability are all necessary for effective AI MRM. Organizations can improve model reliability, foster trust, and adhere to changing legal and ethical requirements by proactively managing these risks.
According to the National Institute of Standards and Technology (NIST), the AI Risk Management Framework (AI RMF) was developed over 18 months through a transparent, multi-stakeholder process involving more than 240 organizations—spanning industry, academia, civil society, and government—to establish a voluntary, flexible resource that fosters trustworthy and responsible AI across all sectors and use cases.
Market Dynamics:
Driver:
AI adoption across industries
AI is being quickly implemented in industries like manufacturing, logistics, retail, public safety, education, and even agriculture; it is no longer limited to tech giants or specialized use cases. Every one of these sectors has distinct requirements for risk management and compliance. Moreover, the FDA, for instance, has proposed rules for AI in medical devices that call for ongoing revalidation of continuous learning systems. According to national road safety regulations, artificial intelligence (AI) used in autonomous vehicles must pass safety and reliability testing. As more industries look for specialized governance frameworks that address their unique operational risks, the number of organizations that require AI MRM capabilities increases due to this sectoral expansion, propelling market growth.
Restraint:
Lack of qualified professionals
AI MRM is a relatively new field that combines technical AI knowledge with expertise in cybersecurity, ethics, risk governance, and regulatory compliance. There is a talent bottleneck because this skill intersection is uncommon. The demand for AI-related jobs is increasing quickly, but the talent pool for AI governance experts is not keeping up, according to the World Economic Forum. Additionally, insufficient expertise in AI MRM system design, implementation, and maintenance hinders organizations' ability to successfully operationalize governance frameworks. Due to this shortage, there are delays, uneven monitoring, and occasionally a dependence on general risk management techniques that do not take into account the risks unique to AI.
Opportunity:
Creation of governance platforms particular to AI
A growing market exists for specialized platforms that combine governance, risk assessment, and compliance reporting capabilities with AI model lifecycle management. In contrast to conventional GRC software, AI MRM platforms would handle AI-specific issues like explainability, bias detection, preventing adversarial attacks, and tracking continuous learning models. Data sheets, model cards, and risk registers should already be part of enterprise workflows, according to the Cloud Security Alliance (CSA). Furthermore, businesses implementing AI at scale may find that startups and well-established GRC providers who incorporate these features into unified dashboards can serve as vital infrastructure.
Threat:
Danger of dependence on automated MRM tools
As AI MRM software advances, companies run the risk of considering automated compliance dashboards to be a full replacement for human oversight. The Partnership on AI and the European Commission has emphasized that stakeholder engagement, ethical considerations, and contextual risk assessment still require human judgment. In the event that automated MRM tools overlook important risks, an over-reliance on them could lead to false assurances of safety or compliance, leaving organizations open to operational failures and regulatory penalties.
Covid-19 Impact:
The COVID-19 pandemic affected the market for AI Model Risk Management (AI MRM) in two ways: it highlighted governance flaws and accelerated adoption. Rapid AI deployment by organizations to tackle pandemic-related issues, including supply chain optimization, healthcare diagnostics, and fraud detection in relief efforts, and remote customer support, frequently outpaced thorough testing and governance, increasing the risk of bias, errors, and model drift. The need for strong MRM frameworks to guarantee dependability in emergency situations was highlighted by this spike in AI use, particularly since unstable market conditions made predictive models less reliable. Moreover, the post-pandemic demand for AI MRM solutions was further fuelled by regulatory agencies and industry associations, such as the OECD and NIST, which started highlighting resilience, transparency, and continuous monitoring as crucial elements of responsible AI.
The model risk segment is expected to be the largest during the forecast period
The model risk segment is expected to account for the largest market share during the forecast period. This dominance results from AI MRM frameworks' primary goal of addressing model-specific risks, including bias, overfitting, lack of explainability, problems with data quality, and performance degradation over time. In sectors like banking, insurance, and healthcare, where AI models have a direct impact on crucial choices like credit approvals, fraud detection, and diagnostic recommendations, model risk management is essential. Additionally, validating models, testing against edge cases, recording assumptions, and regularly monitoring outputs are all highly valued in regulatory frameworks, such as the NIST AI Risk Management Framework and the Basel Committee's principles for model risk governance.
The fraud detection and risk reduction segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the fraud detection and risk reduction segment is predicted to witness the highest growth rate. The increasing sophistication of fraud schemes, especially in banking, fintech, insurance, and e-commerce, which necessitate sophisticated AI systems that can identify anomalies in real time, is driving this segment's rapid growth. Organizations are using AI models with continuous learning capabilities to spot subtle patterns and stop financial and reputational losses as fraud tactics change. Furthermore, to maintain objectivity, explainability, and compliance with laws like the U.S. Bank Secrecy Act, the EU AI Act, and anti-money laundering (AML) directives, these models must, nevertheless, function under stringent risk governance.
Region with largest share:
During the forecast period, the North America region is expected to hold the largest market share, driven by the region's robust regulatory framework, early AI technology adoption, and the existence of significant technology firms, financial institutions, and providers of AI governance solutions. Because of strict compliance requirements from organizations like the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the National Institute of Standards and Technology (NIST), which demand strong model validation, monitoring, and governance practices, the United States leads the world in this regard. Furthermore, the need for thorough risk management frameworks has increased due to the quick integration of AI in banking, healthcare, and government services; further supporting market expansion are Canada's AI ethics and transparency initiatives.
Region with highest CAGR:
Over the forecast period, the Asia-Pacific region is anticipated to exhibit the highest CAGR, driven by the quickening pace of digital transformation, the growing use of AI in the government, banking, manufacturing, and healthcare sectors, as well as the growing emphasis on responsible AI by regulators. In addition to making significant investments in AI infrastructure, nations like China, India, Singapore, and Japan are also implementing frameworks and guidelines to address model governance, algorithmic bias, and data privacy. Moreover, Asia-Pacific is the fastest-growing region in this field because of government-backed AI initiatives like Singapore's AI Governance Framework and India's National AI Strategy, which are laying a solid basis for long-term market expansion.
Key players in the market
Some of the key players in AI Model Risk Management Market include Microsoft, Google, LogicGate Inc, Amazon Web Services (AWS), IBM Corporation, H2O.ai, SAS Institute, Alteryx, UpGuard Inc, DataRobot, Inc., MathWorks Inc, ComplyCube, BigID, Holistic AI and ValidMind Inc.
Key Developments:
In August 2025, Cloud services giant Amazon Web Services (AWS) and Malaysian clean energy solutions provider Gentari have signed a power purchase agreement (PPA) for an 80MW wind power project in Tamil Nadu, India, a state on the south-eastern coast of the Indian peninsula.
In July 2025, Alphabet Inc.’s Google inked a deal worth more than $1 billion to provide cloud-computing services to software firm ServiceNow Inc., a win for Google Cloud’s efforts to get major enterprises onto its platform. ServiceNow committed to spending $1.2 billion over five years, according to a person familiar with the agreement who asked not to be identified discussing internal information.
In July 2025, Microsoft has achieved a breakthrough with CISPE, the European cloud organization. After years of negotiations, an agreement has been reached on better licensing terms for European cloud providers. The agreement aims to strengthen competition and support European digital sovereignty.
Offerings Covered:
• Software
• Services
Deployment Models Covered:
• On-premise
• Cloud-based
• Hybrid
Risk Types Covered:
• Model Risk
• Operational Risk
• Compliance Risk
• Reputational Risk
• Strategic Risk
• Ethical Risk
Applications Covered:
• Fraud Detection and Risk Reduction
• Data Classification and Labelling
• Sentiment Analysis
• Model Inventory Management
• Customer Segmentation and Targeting
• Regulatory Compliance Monitoring
• Other Applications
End Users Covered:
• Banking, Financial Services, And Insurance (BFSI)
• Retail & E-commerce
• IT & Telecom
• Manufacturing
• Healthcare & Life Sciences
• Media & Entertainment
• Government and Public Sector
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global AI Model Risk Management Market, By Offering
5.1 Introduction
5.2 Software
5.2.1 Model Management
5.2.2 Bias Detection
5.2.3 Explainable AI Tools
5.3 Services
5.3.1 Professional Services
5.3.2 Managed Services
6 Global AI Model Risk Management Market, By Deployment Model
6.1 Introduction
6.2 On-premise
6.3 Cloud-based
6.4 Hybrid
7 Global AI Model Risk Management Market, By Risk Type
7.1 Introduction
7.2 Model Risk
7.3 Operational Risk
7.4 Compliance Risk
7.5 Reputational Risk
7.6 Strategic Risk
7.7 Ethical Risk
8 Global AI Model Risk Management Market, By Application
8.1 Introduction
8.2 Fraud Detection and Risk Reduction
8.3 Data Classification and Labelling
8.4 Sentiment Analysis
8.5 Model Inventory Management
8.6 Customer Segmentation and Targeting
8.7 Regulatory Compliance Monitoring
8.8 Other Applications
9 Global AI Model Risk Management Market, By End User
9.1 Introduction
9.2 Banking, Financial Services, And Insurance (BFSI)
9.3 Retail & E-commerce
9.4 IT & Telecom
9.5 Manufacturing
9.6 Healthcare & Life Sciences
9.7 Media & Entertainment
9.8 Government and Public Sector
9.9 Other End Users
10 Global AI Model Risk Management Market, By Geography
10.1 Introduction
10.2 North America
10.2.1 US
10.2.2 Canada
10.2.3 Mexico
10.3 Europe
10.3.1 Germany
10.3.2 UK
10.3.3 Italy
10.3.4 France
10.3.5 Spain
10.3.6 Rest of Europe
10.4 Asia Pacific
10.4.1 Japan
10.4.2 China
10.4.3 India
10.4.4 Australia
10.4.5 New Zealand
10.4.6 South Korea
10.4.7 Rest of Asia Pacific
10.5 South America
10.5.1 Argentina
10.5.2 Brazil
10.5.3 Chile
10.5.4 Rest of South America
10.6 Middle East & Africa
10.6.1 Saudi Arabia
10.6.2 UAE
10.6.3 Qatar
10.6.4 South Africa
10.6.5 Rest of Middle East & Africa
11 Key Developments
11.1 Agreements, Partnerships, Collaborations and Joint Ventures
11.2 Acquisitions & Mergers
11.3 New Product Launch
11.4 Expansions
11.5 Other Key Strategies
12 Company Profiling
12.1 Microsoft
12.2 Google
12.3 LogicGate Inc
12.4 Amazon Web Services (AWS)
12.5 IBM Corporation
12.6 H2O.ai
12.7 SAS Institute
12.8 Alteryx
12.9 UpGuard Inc
12.10 DataRobot, Inc.
12.11 MathWorks Inc
12.12 ComplyCube
12.13 BigID
12.14 Holistic AI
12.15 ValidMind Inc
List of Tables
1 Global AI Model Risk Management Market Outlook, By Region (2024-2032) ($MN)
2 Global AI Model Risk Management Market Outlook, By Offering (2024-2032) ($MN)
3 Global AI Model Risk Management Market Outlook, By Software (2024-2032) ($MN)
4 Global AI Model Risk Management Market Outlook, By Model Management (2024-2032) ($MN)
5 Global AI Model Risk Management Market Outlook, By Bias Detection (2024-2032) ($MN)
6 Global AI Model Risk Management Market Outlook, By Explainable AI Tools (2024-2032) ($MN)
7 Global AI Model Risk Management Market Outlook, By Services (2024-2032) ($MN)
8 Global AI Model Risk Management Market Outlook, By Professional Services (2024-2032) ($MN)
9 Global AI Model Risk Management Market Outlook, By Managed Services (2024-2032) ($MN)
10 Global AI Model Risk Management Market Outlook, By Deployment Model (2024-2032) ($MN)
11 Global AI Model Risk Management Market Outlook, By On-premise (2024-2032) ($MN)
12 Global AI Model Risk Management Market Outlook, By Cloud-based (2024-2032) ($MN)
13 Global AI Model Risk Management Market Outlook, By Hybrid (2024-2032) ($MN)
14 Global AI Model Risk Management Market Outlook, By Risk Type (2024-2032) ($MN)
15 Global AI Model Risk Management Market Outlook, By Model Risk (2024-2032) ($MN)
16 Global AI Model Risk Management Market Outlook, By Operational Risk (2024-2032) ($MN)
17 Global AI Model Risk Management Market Outlook, By Compliance Risk (2024-2032) ($MN)
18 Global AI Model Risk Management Market Outlook, By Reputational Risk (2024-2032) ($MN)
19 Global AI Model Risk Management Market Outlook, By Strategic Risk (2024-2032) ($MN)
20 Global AI Model Risk Management Market Outlook, By Ethical Risk (2024-2032) ($MN)
21 Global AI Model Risk Management Market Outlook, By Application (2024-2032) ($MN)
22 Global AI Model Risk Management Market Outlook, By Fraud Detection and Risk Reduction (2024-2032) ($MN)
23 Global AI Model Risk Management Market Outlook, By Data Classification and Labelling (2024-2032) ($MN)
24 Global AI Model Risk Management Market Outlook, By Sentiment Analysis (2024-2032) ($MN)
25 Global AI Model Risk Management Market Outlook, By Model Inventory Management (2024-2032) ($MN)
26 Global AI Model Risk Management Market Outlook, By Customer Segmentation and Targeting (2024-2032) ($MN)
27 Global AI Model Risk Management Market Outlook, By Regulatory Compliance Monitoring (2024-2032) ($MN)
28 Global AI Model Risk Management Market Outlook, By Other Applications (2024-2032) ($MN)
29 Global AI Model Risk Management Market Outlook, By End User (2024-2032) ($MN)
30 Global AI Model Risk Management Market Outlook, By Banking, Financial Services, And Insurance (BFSI) (2024-2032) ($MN)
31 Global AI Model Risk Management Market Outlook, By Retail & E-commerce (2024-2032) ($MN)
32 Global AI Model Risk Management Market Outlook, By IT & Telecom (2024-2032) ($MN)
33 Global AI Model Risk Management Market Outlook, By Manufacturing (2024-2032) ($MN)
34 Global AI Model Risk Management Market Outlook, By Healthcare & Life Sciences (2024-2032) ($MN)
35 Global AI Model Risk Management Market Outlook, By Media & Entertainment (2024-2032) ($MN)
36 Global AI Model Risk Management Market Outlook, By Government and Public Sector (2024-2032) ($MN)
37 Global AI Model Risk Management Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
Frequently Asked Questions
In case of any queries regarding this report, you can contact the customer service by filing the “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
Yes, the samples are available for all the published reports. You can request them by filling the “Request Sample” option available in this page.
Yes, you can request a sample with your specific requirements. All the customized samples will be provided as per the requirement with the real data masked.
All our reports are available in Digital PDF format. In case if you require them in any other formats, such as PPT, Excel etc you can submit a request through “Inquiry Before Buy” form available on the right hand side. You may also contact us through email: info@strategymrc.com or phone: +1-301-202-5929
We offer a free 15% customization with every purchase. This requirement can be fulfilled for both pre and post sale. You may send your customization requirements through email at info@strategymrc.com or call us on +1-301-202-5929.
We have 3 different licensing options available in electronic format.
- Single User Licence: Allows one person, typically the buyer, to have access to the ordered product. The ordered product cannot be distributed to anyone else.
- 2-5 User Licence: Allows the ordered product to be shared among a maximum of 5 people within your organisation.
- Corporate License: Allows the product to be shared among all employees of your organisation regardless of their geographical location.
All our reports are typically be emailed to you as an attachment.
To order any available report you need to register on our website. The payment can be made either through CCAvenue or PayPal payments gateways which accept all international cards.
We extend our support to 6 months post sale. A post sale customization is also provided to cover your unmet needs in the report.
Request Customization
We offer complimentary customization of up to 15% with every purchase. To share your customization requirements, feel free to email us at info@strategymrc.com or call us on +1-301-202-5929. .
Please Note: Customization within the 15% threshold is entirely free of charge. If your request exceeds this limit, we will conduct a feasibility assessment. Following that, a detailed quote and timeline will be provided.
WHY CHOOSE US ?
Assured Quality
Best in class reports with high standard of research integrity
24X7 Research Support
Continuous support to ensure the best customer experience.
Free Customization
Adding more values to your product of interest.
Safe & Secure Access
Providing a secured environment for all online transactions.
Trusted by 600+ Brands
Serving the most reputed brands across the world.
