AI Trust, Risk And Security Management Market Size, Share & Trends Analysis Report By Component, By Type (Explainability, ModelOps, Data Protection), By Deployment, By Enterprise Size, By Application, By End-use, By Region, And Segment Forecasts, 2024 - 2030

AI TRiSM Market Size & Trends

The global AI trust, risk and security management market size was estimated at USD 1.96 billion in 2023 and is projected to grow at a CAGR of 21.3% from 2024 to 2030. The growth is primarily attributed to the increasing demand for ethical AI practices. Organizations are increasingly recognizing the ethical and societal implications of AI applications, resulting in the rising need for comprehensive frameworks that ensure fair and responsible AI deployment. The importance of AI trust, risk and security management (AI TRiSM) solutions has become prominent as they play a key role in establishing trust by handling ethical concerns, thereby promoting a positive image of AI technologies. Organizations are increasingly seeking AI governance solutions to manage the AI lifecycle responsibly. At the same time, evolving regulations are mandating AI TRiSM practices to ensure regulatory compliance. As consumers become more informed, there is a growing demand for AI applications that prioritize trust, security, and ethical considerations.

The adoption of AI technology is gaining traction across various industries and industry verticals. While most AI providers claim that their respective solutions are designed to ensure adequate data security and privacy protection, concerns over AI-related risks, such as invasion of privacy and compromised data security, show no signs of abating. Calls for ensuring trust and transparency in AI usage in the wake of the growing concerns related to discriminatory algorithms, data breaches, and AI-powered surveillance systems are particularly putting pressure on organizations to demonstrate responsible AI practices. To address these concerns, organizations are typically adopting AI TRiSM solutions not only to mitigate AI-related risks but also to build public trust by enhancing their brand image and market reputation.

AI TRiSM can also play a potent role in bridging the gap between advanced AI technology and its practical implementation. While the transformative potential of AI across various industries and industry verticals is significant, concerns over potential AI-related risks are poised to challenge its widespread adoption. However, AI TRiSM can mitigate these risks and aid in building trust and confidence and allowing organizations to utilize the potential of AI advancements to their entirety. Advancements, such as Explainable AI (XAI), particularly align with the strong emphasis TRiSM frameworks put on explainability, providing developers with the tools required to build transparent, interpretable AI models that can potentially address both regulatory and user concerns.

Market Concentration & Characteristics

The industry growth stage is high, and the pace of the growth is accelerating. Businesses embracing AI TRiSM can leverage the capabilities of AI for informed decision-making, gaining valuable insights, and offering customized experiences without compromising trust and security, thus enhancing their industry competitiveness. The adoption of AI TRiSM empowers companies to utilize the full potential of AI while effectively managing associated risks. With widespread applications across diverse industries and industry verticals, AI TRiSM can play a vital role in fostering an environment where AI technologies inspire trust, risks are mitigated, and security is assured.

The AI TRiSM industry is characterized by a high level of merger and acquisition (M&A) activity, Ethical AI practices involve a collaborative effort of regulatory bodies, research institutions, and technology & consulting firms. Regulatory bodies play a vital role in establishing and enforcing ethical AI guidelines, overseeing compliance, and fostering international cooperation. Research institutions contribute by conducting ethical AI research, educating stakeholders, and developing tools for bias detection and explainable AI. Technology and consulting firms are actively engaged in developing and implementing ethical AI solutions, supporting responsible AI development, and integrating ethical considerations into existing products and services. Together, these entities form a comprehensive ecosystem that promotes responsible and transparent AI development, addressing issues related to fairness, accountability, and privacy.

AI regulations are shifting toward pursuing a risk-based approach, focusing on high-risk AI applications while guaranteeing flexibility for businesses to ensure proper safeguards. Intergovernmental organizations, such as the OECD and G20, are advocating and emphasizing core principles, such as human rights, sustainability, transparency, and robust risk management, forming the basis for regulations mandating responsible AI development. Regulatory frameworks, such as the EU's GDPR and sector-specific regulations in the U.S., emphasize transparency, explainability, data governance, and mitigation of cybersecurity threats.

The AI TRiSM industry faces a low threat from substitutes. Traditional security solutions such as firewalls and in-house development by large organizations offer alternatives that address certain aspects of the market. However, in-house development demands substantial investment and expertise, limiting accessibility, while emerging open-source alternatives lack development maturity and comprehensiveness compared to commercial offerings.

The growing integration of AI solutions across industries is driving the need for effective AI governance, emphasizing trust, risk, and security management. The surge in AI adoption also fuels a growing demand for AI TRiSM products and services to ensure the effective and secure implementation of AI technologies. The rising focus of businesses on ethical AI practices is boosting the demand for tools that ensure transparency, fairness, and accountability in AI development. This is likely to drive the demand for AI TRiSM solutions and services in the near future.

Component Insights

The solution segment led the market with a revenue share of 70.7% in 2023. AI TRiSM solutions are software solutions that allow ML practitioners and software developers to monitor, evaluate, interpret, and provide insights on the number of ML models being created before finalizing the model to be deployed in the final software. These solutions ensure trustworthiness by communicating model predictions to the stakeholders. These solutions are readily used as part of the software development process, wherein these solutions optimize instant debugging, ensure the quality of the model being developed, provide analytics on model performance, and streamline complex logic into simple, actionable insights.

The services segment is estimated to grow significantly over the forecast period. The services segment covers the professional and managed services associated with the deployment and implementation of AI TRiSM solutions. Given that the AI TRiSM market is still in its nascent stage, a looming lack of adequate understanding of the proper, efficient usage of AI TRiSM solutions and their seamless integration with the existing systems is prompting vendors to offer deployment and implementation services at moderate costs. Vendors are also offering post-sale services, typically including consultation for a specified number of business hours over video, audio, or email, among other communication modes.

Type Insights

The explainability segment accounted for the largest revenue share in 2023. Organizations are recognizing the importance of building trust in AI systems, especially in critical domains, such as healthcare, finance, and autonomous driving, where decisions impact human lives and well-being. At this point, enhanced explainability not only fosters trust but also aids in regulatory compliance for responsible AI usage. Consequently, businesses investing in AI TRiSM solutions prioritize explainability to ensure accountability, mitigate risks, and understand the complex landscape of AI ethics and governance, thereby driving the segment’s growth.

The ModelOps segment is projected to grow significantly over the forecast period. ModelOps or Model Operations refers to the end-to-end lifecycle management of AI and ML models, encompassing development, testing, deployment, monitoring, and maintenance. The increasing complexity of AI models and the integration of ML models into various business processes has intensified the need for efficient and reliable ModelOps solutions. One of the key drivers contributing to the segment’s growth is the exponential growth in the number of deployed AI models across various industries.

Application Insights

The governance & compliance segment accounted for the largest revenue share in 2023. The growth of the segment can be attributed to the widespread adoption of AI in various industries, driving the demand for robust governance and compliance frameworks. Other factors include the rising reliance on AI technologies, growing awareness about associated risks, such as bias and security vulnerabilities, the evolving regulatory landscape, and increased public scrutiny as consumers demand ethical and responsible AI practices.

The bias detection & mitigation segment is predicted to foresee significant growth in the forecast period. The growth of the segment can be attributed to the growing awareness among organizations about the adverse effects of biased AI, such as unfair discrimination and inaccurate results. Regulatory pressures are also driving the demand for bias detection and mitigation solutions as governments mandate organizations to address AI bias issues. At the same time, advances in technology are contributing to the effectiveness and accessibility of these solutions, with emerging technologies playing a key role in detecting and mitigating AI bias.

Deployment Insights

The on-premises segment accounted for the largest revenue share in 2023. Many enterprises favor on-premises AI TRiSM solutions to retain direct control over their infrastructure. On-premises deployment provides organizations with the ability to manage and customize security measures according to their specific needs and regulatory requirements. This level of control is particularly crucial in industries such as finance and healthcare, where stringent regulations mandate a high degree of oversight and control over data handling and security protocols.

The cloud segment is estimated to grow significantly over the forecast period. Cloud deployment provides enhanced accessibility and flexibility. Organizations can access AI TRiSM capabilities remotely, enabling seamless collaboration and real-time monitoring across distributed teams and geographies. This flexibility is crucial for businesses with a global footprint and diverse operations, allowing them to centralize security management and governance functions efficiently. Cloud services function on a pay-as-you-go model, allowing enterprises to avoid upfront infrastructure costs and only pay for the resources they consume. This flexibility is appealing to businesses seeking to manage their budgets effectively while benefiting from cutting-edge AI TRiSM solutions without making any substantial upfront investments in hardware and maintenance.

Enterprise Size Insights

The large enterprise segment accounted for the largest revenue share in 2023. This can be attributed to the growing integration of AI across diverse domains, from marketing and sales to finance and risk management, within large enterprises. The need for AI TRiSM solutions arises from the increased reliance on AI technologies, emphasizing the need for responsible and secure implementation within large enterprises. AI TRiSM solutions aid large enterprises in demonstrating regulatory compliance, offering tools to manage data privacy, and ensuring model explainability and fairness in AI models. Large enterprises also recognize the potential risks associated with AI, including bias, security vulnerabilities, and explainability issues.

The Small & Medium Enterprise (SME) segment is predicted to foresee significant growth over the forecast period. As AI becomes more prevalent, SMEs are recognizing the importance of building and maintaining trust with their stakeholders. Demonstrating a commitment to ethical AI practices and effective security measures is vital for smaller businesses to build trust among customers, partners, and regulatory authorities, contributing to their credibility and competitiveness in the market. Moreover, SMEs contribute substantially to economic growth and innovation. As AI technologies become more integral to business operations across diverse industries, SMEs are recognizing the need to adopt comprehensive AI TRiSM practices to navigate the complexities associated with responsible AI deployment.

End-use Insights

The IT & telecommunication segment accounted for the largest revenue share in 2023. AI technology helps IT companies optimize and automate their IT infrastructure, improve business productivity and efficiency, deliver personalized customer experience, enhance data management, and perform real-time analytics subject to business processes. Thus, AI technology can cater to several business applications associated with the IT & telecom industry. However, with the growing use of AI; risks, such as data breach, data leakage, and malicious attacks, are also growing. Several IT companies are implementing regulatory solutions to monitor AI-enabled solutions and secure data and proprietary products as part of the efforts to mitigate these risks.

The healthcare segment is predicted to foresee significant growth during the forecast period. The rising use of AI for interpreting medical data, automating administrative operations, facilitating clinical decision-making, predicting disease outbreaks, and assisting in diagnosis has been reshaping the overall patient experience and medical practices. In 2023, the U.S. Food and Drug Administration (FDA) announced the list of AI-enabled medical devices approved for use in hospitals in the U.S. The list included several medical devices developed by companies such as GE Healthcare, Brainomix Limited, Edwards Lifesciences, LLC, and Ad Sonio, among others. GE Healthcare, one of the key companies in the digital healthcare solutions market, accounted for the largest number of approved devices in this list. The majority of the devices were developed for applications in radiology, followed by cardiovascular and neurology.

Regional Insights

North America dominated the market and accounted for a 32.6% share in 2023. North America has a competitive advantage in the AI market place owing to the presence of some of the world’s leading technology companies in the region. These companies have foundational AI capabilities, such as cloud platforms and governance structures, which grant them competitive differentiation and prominent growth opportunities. The capability to showcase AI systems of high quality and reliability, which are also prepared for regulatory compliance, provides a substantial advantage to industry frontrunners in both the short and long run. This advantage allows them to draw in new customers, maintain existing ones, and build investor confidence.

U.S. AI TRiSM Market Trends

The AI TRiSM market in the U.S. is expected to grow significantly over the forecast period. The rising focus on designing explainable AI models that are more transparent and understandable, enabling better trust and control, and the growing adoption of scalable and cost-effective cloud-based AI TRiSM solutions are driving the market growth. Moreover, the market benefits from the increasing use of AI across numerous industries for diverse tasks, such as automation, data analysis, and decision-making, and the subsequent increase in concerns about trust, transparency, and potential risks associated with the use of AI solutions.

Europe AI TRiSM Market Trends

Advancements in AI are reshaping how a range of applications and regular operations are undertaken. The European Union intends to modulate artificial intelligence to ensure improved provisions for the development and use of innovative technologies. AI holds the potential to create numerous advantages, including improvements in healthcare, enhanced safety and cleanliness in transportation, increased efficiency in manufacturing, and the development of more affordable and sustainable energy solutions.

AI TRiSM market in the UK is expected to grow substantially over the forecast period. The increased use of AI technologies across industries is poised to revolutionize the economic landscape of the UK, enhancing the lives of people nationwide, reshaping how industries operate, and providing superior public services.

France AI TRiSM market is expected to grow significantly over the forecast period. The AI TRiSM market in France presents a promising landscape for businesses and organizations committed to responsible AI development. By addressing the challenges associated with AI implementation and capitalizing on unique trends, France is poised to position itself as a leader in ethical and trustworthy AI implementation.

AI TRiSM market in Germany held the largest share of the Europe market. The German Federal Government introduced its national Artificial Intelligence Strategy in November 2018 with the goal of creating AI made in Germany as a globally recognized trademark for state-of-the-art, secure AI applications. Aligning with this strategy, the government has committed to allocating over USD 5 billion to support its implementation.

Asia Pacific AI TRiSM Market Trends

Asia Pacific is anticipated to register the fastest CAGR over the forecast period. AI solutions and services are being implemented in sectors such as finance, retail, transport, healthcare, agriculture, and manufacturing. Policymakers in the region are focusing on assessing the role of AI in driving societal benefits. By establishing best practices and ethical principles, policymakers can play a pivotal role in preparing individuals, organizations, and communities to leverage the advantages of AI while minimizing any unintended or yet-to-be-identified risks associated with AI and related innovations.

China AI TRiSM market is expected to grow significantly over the forecast period. China is currently implementing some of the world's earliest and most intricate regulations for artificial intelligence governance. These cover policies that govern recommendation algorithms, which are the most prevalent form of AI implemented on the internet.

AI TRiSM market in India is expected to grow substantially over the forecast period. In India, AI-based applications have been driven largely by the private sector. As AI becomes more integrated into business processes and decision-making, concerns about potential risks such as biases, security vulnerabilities, and lack of explainability are increasing. This awareness is driving the demand for AI TRiSM solutions to mitigate these risks and comply with emerging regulations, including the Personal Data Protection Bill (PDP Bill).

Japan AI TRiSM market is expected to grow significantly over the forecast period. The Japanese government has been promoting the adoption of AI in various sectors, such as healthcare, manufacturing, and transportation. The market growth in Japan is expected to be driven by several factors, including the increasing adoption of AI by businesses and organizations, the growing awareness of AI risks, and the stringent data privacy regulations in Japan.

Middle East & Africa (MEA) AI TRiSM Market Trends

The potential economic impact of AI on regional economic growth is considerable, with an anticipated annual growth in the economic contribution of AI ranging from 20% to 34% across the region. The highest growth rates are expected in the UAE and Saudi Arabia. The proliferation of national AI strategies, the establishment of dedicated departments, and the initiation of various AI-related initiatives highlight the pivotal role of AI in driving economic transformation in the region.

Kingdom of Saudi Arabia (KSA) AI TRiSM market is expected to grow significantly over the forecast period. Saudi Arabia has been actively advancing its integration of AI technologies as part of the Vision 2030 national development plan. The country has established the specialized "Saudi Authority for Data and Artificial Intelligence," and it’s National Strategy for Data and AI, designed to position Saudi Arabia as a global leader in technology by 2030.

AI TRiSM market in the United Arab Emirates (UAE) is expected to grow substantially over the forecast period. The UAE's focus on digital transformation and AI adoption, illustrated by initiatives like the Dubai AI Strategy 2023 and the Abu Dhabi AI Strategy 2030, is accelerating the need for robust AI governance solutions to ensure the ethical and secure implementation of AI across the country.

Key AI Trust, Risk And Security Management Company Insights

Prominent firms have used product launches and developments, followed by expansions, mergers and acquisitions, contracts, agreements, partnerships, and collaborations as their primary business strategy to increase their market share. The companies have used various techniques to enhance market penetration and boost their position in the competitive industry. For instance, in December 2023, SAP SE and Robert Bosch GmbH, a German multinational engineering and technology company, collaborated to leverage the potential of secure multi-party computation (MPC) for privacy-preserving data analysis. This collaboration was aimed at enhancing MPC capabilities and unlocking new business opportunities for customers and partners across various industries.

Recent Developments

• In October 2023, International Business Machines Corporation launched AI-powered Threat Detection and Response Services. These services include 24x7 monitoring, automated remediation, and investigation of security alerts across the client's hybrid cloud environments. The scope encompasses existing security tools and investments, spanning on-premise, cloud, and operational technologies.

• In September 2023, Wipro Limited, an Indian multinational corporation, collaborated with ServiceNow to launch Wipro CyberTransform, an intelligent ServiceNow risk and security solution. This solution empowered organizations to integrate their risk, compliance, and security postures efficiently.

• In June 2023, TruEra Inc. introduced TruEra Monitoring, an AI quality monitoring solution that enhances the company's existing model evaluation tool, TruEra Diagnostics. This continuous monitoring system operates throughout the entire model lifecycle, enabling AI teams to promptly identify and address issues for optimal data model quality and performance.

AI TRiSM Market Report Scope

Global AI TRiSM Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global AI TRiSM market report based on component, type, application, deployment, enterprise size, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2017 - 2030)

  • Solution

  • Services

• Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Explainability

  • ModelOps

  • Data Anomaly Detection

  • Data Protection

  • AI Application Security

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Governance & Compliance

  • Bias Detection & Mitigation

  • Security & Anomaly Detection

  • Privacy Management

• Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

  • On-premises

  • Cloud

• Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

  • Large Enterprise

  • Small & Medium Enterprise

• End-use Outlook (Revenue, USD Billion, 2017 - 2030)

  • IT & Telecommunication

  • BFSI

  • Manufacturing

  • Retail & E-Commerce

  • Healthcare

  • Government

  • Media & Entertainment

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Kingdom of Saudi Arabia

    • UAE

    • South Africa