Global Artificial Intelligence Model Risk Management Market Growth

New Delhi, India, November 7, 2025 /PRNewswire/ - According to recent analyses by Markntel Advisors, the Global Artificial Intelligence Model Risk Management (MRM) Market is experiencing accelerated growth due to the increasing corporate adoption of artificial intelligence (AI), rising regulatory oversight, and the growing need for transparency and explainability in machine learning (ML) models across industries. As AI systems impact critical business decisions such as lending, fraud detection, healthcare diagnosis, and insurance policies, implementing robust model validation, governance, and compliance frameworks has become imperative.

In the global market, North America holds the largest position with a %38 market share, maintained by the United States. Regulatory agencies such as the Federal Reserve, OCC, and FDIC continue to develop guidelines for model risk management; for example, the SR 11-7 framework is one such example. The widespread use of AI models in banking, insurance, and defense applications further solidifies this region's leadership, also supported by the presence of technology-focused MRM providers offering integrated platforms for model inventory, monitoring, and compliance automation. Europe, meanwhile, is quickly securing second place due to stringent regulatory frameworks like the EU AI Act and GDPR compliance requirements.

The Global Artificial Intelligence Model Risk Management Market is expected to be valued at approximately USD 6.41 billion in 2025, reaching USD 14.55 billion by 2032. It is projected to grow at a compound annual growth rate (CAGR) of 12.42% between 2026 and 2032. Global companies like SAS Institute, IBM, FIS, and ModelOp are actively expanding their product portfolios with AI governance capabilities, cloud-based integrations, and advanced analytics in the AI Model Risk Management industry.

In May 2024, Amazon Web Services expanded its strategic partnership with cybersecurity provider CrowdStrike to modernize cybersecurity integration and facilitate cloud transformation. Amazon Web Services integrated cybersecurity defenses on the CrowdStrike Falcon platform, providing comprehensive protection from individual code segments to entire cloud infrastructures. This combination reflects the need for secure, automated risk management frameworks in cloud environments, supporting the growth of the AI model risk management market.

In May 2024, International Business Machines Corporation partnered with Palo Alto Networks to offer AI-assisted security outcomes to its customers. This partnership aims to simplify security operations, effectively halt threats at scale, and accelerate incident resolution. This collaboration enhances AI model risk management by embedding advanced cybersecurity, given the rising need for high precision in AI models operating in increasingly critical environments.

All these strategic partnerships illustrate how the convergence of AI, cybersecurity, and cloud technologies is driving the adoption of AI Model Risk Management solutions. They emphasize the importance of robust AI governance frameworks to ensure model transparency, regulatory compliance, and operational resilience in an increasingly digital and regulated environment.