Responsible AI Market Size, Share, Opportunities, And Trends By Component (Software Tools & Platforms, Services), By Deployment (On-Premises, Cloud), By End-User (Healthcare, BFSI, Government and Public Sector, Automotive Industry, IT and Telecommunication, Others), And By Geography - Forecasts From 2025 To 2030

Responsible AI Market Size:

The Responsible AI Market is expected to grow at a CAGR of 17.89% during the forecast period.

Education, finance, healthcare, retail, telecommunications, banking, and various other sectors are increasingly adopting AI to make critical business decisions. For example, in the finance sector, AI technology such as machine learning for speed up the task of data analysis, risk management, fraud detection, and customer services. These decisions are based on algorithms that introduce the stakeholders affected by the decisions to potential risks. Thus, there has been an increasing focus on responsible AI deployment in AI systems in recent years.

Responsible AI refers to the set of principles and processes designed to build trust, confidence, and transparency in AI systems. It aims at embedding ethical considerations into AI applications to mitigate risk and negative outcomes and to empower organizations and their stakeholders, including the broader society. Hence, the “Responsible AI” encompasses four key dimensions: privacy and data governance, transparency and explainability, security and safety, and fairness. 

The growing regulatory requirements by governments and organizations for adopting practices and technologies that can ensure transparency, fairness, security, and others are the key drivers for the responsible AI market. The growing mandatory compliance will also boost the responsible AI market. Further, the rising ethical considerations of AI systems, such as their political biases in elections, privacy concerns, and data selling, will propel the market.

Additionally, the growing technological development in responsible AI will boost the market.  The increasing cases of AI incidents are continuously driving its demand. As per the AI incident database, 123 incidents were reported in 2023, which is a 32.35 increase from the last year.

Responsible AI Market Growth Drivers:

• Increasing regulatory compliance will be shaping the Responsible AI market growth

Governments and organizations are increasingly issuing guidelines for the responsible use of artificial intelligence while making important decisions in business. Due to rising ethical concerns over the use of artificial intelligence, the regulations for implementing responsible artificial intelligence systems in business are driving the market. Healthcare, finance, and other industries have growing traction for the adoption of responsible AI to meet government regulations and guidelines. This increase in regulations and the growing trend of the regulatory environment in the future from governments will be the key factors driving the market of responsible AI.

For example, the National Association of Insurance Commissioners issued a bulletin for insurers to have in their AI system focusing on governance frameworks, risk management protocols, and testing methodologies. The California Consumer Privacy Act requires organizations to use personal information responsibly. The U.K. government's March 2023 paper on “A pro-innovation approach to AI regulation” is a growing step towards responsible AI. The EU AI Act of August 2024 categorizes AI use into risk tiers with corresponding legal obligations and significant financial penalties for misuse. 

The Standford University report “Artificial Intelligence Index Report 2024” states that the number of AI-related regulations in the U.S. has risen significantly in the past year and over the last five years. In 2023, there were 25 AI-related regulations, up from just one in 2016. Thus, this market is growing significantly due to increasing regulatory pressure from governments to deploy Responsible AI into their AI systems.

Responsible AI Market Restraints:

• Lack of comprehensive governmental policies for Responsible AI is restraining the market

Due to the lack of comprehensive governmental regulations by the governments at the national and global levels, the responsible AI market is experiencing restrain in its expansion. Though there are a growing number of government regulations, they lack applicability across regions of a country. Still, there is no discussion regarding regulatory policies at the global level. This will significantly hinder market expansion.

Responsible AI Market Segment Analysis:

• By End-users, Healthcare and BFSI will grow steadily.

The healthcare sector uses artificial intelligence for making a variety of decisions such as it is used in complementing disease diagnosis, personalizing medicine, and assessing the risk associated with patients among others.  In 2022, the FDA approved 139 AI-related medical devices, a 12.1% increase from 2021. Since 2012, the number of FDA-approved AI-related medical devices has increased by more than 45-fold, highlighting the increasing adoption of AI in healthcare, as reported by the Artificial Intelligence Annual Report Index 2024.

The increasing AI adoption is raising the demand for fairness, privacy & security, accountability, governance, and ethical considerations in its usage by the people. The increased number of privacy breaches and rising awareness among people for data security and safety are growing the healthcare market.

Along with healthcare, the BFSI segment will also grow faster than other end-user segments. The rising cases of fraud and virtual crimes in the banking, financial services, and insurance sectors drive the demand for Responsible AI. Thus, Responsible AI is needed and required as per growing governmental regulations by these industries for mitigating risk, fraud detection, credit scoring, etc.

Responsible AI Market Geographical Outlook: 

• North America will hold the largest market share during the forecast period

Based on Geography, the North American region is estimated to hold a significant share of the responsible AI Market. The United States of America will particularly drive this market dominance. North America is showing constant AI & IoT adoption, leading to the market growth of responsible AI. The prevalence of strict regulations for transparency and accountability in decision-making is also driving this market. The data from Standard University reports highlights that the U.S. is leading China, the EU, and the U.K. as the leading sources of top AI models. In 2023, 61 notable AI models originated from U.S.-based institutions, far outpacing the European Union’s 21 and China’s 15.

The European market will also grow significantly due to the increasing adoption of AI and demand for explainable AI. Government regulatory requirements, such as GDPR will be driving market growth for Responsible AI.

The Asia Pacific region will witness market growth during the forecast period due to the increasing adoption of AI by countries like China, Japan, South Korea, India, and others, and growing ethical concerns over AI use will drive the need for Responsible AI.  

Responsible AI Market Key Developments:

• In September 2024, SAS joined CoRE-AI (Coalition for Responsible Evolution of AI) to leverage its expertise in responsible AI in India
• In August 2024, Accenture and AWS collaborated to develop a new platform, Accenture Responsible Artificial Intelligence Platform powered by AWS, to help organizations increase confidence and trust throughout their enterprise. The platform will include five offerings, including AI governance and principles and AI risk management. 
• In May 2024, Temenos launched its Responsible Generative AI solutions as part of its infused banking platform. It will integrate Temenos Core with Financial Crime Mitigation.
• In April 2024, Seekr, an AI-based company, collaborated with Intel to deliver LLM and foundation models while Intel and Intel customers will get access to SeekrFlow which is a suite of responsible and explainable LLMs allowing Seeker clients to access Intel Tiber Developer Cloud’s reliable and explainable AI infrastructure.

Responsible AI Market Scope:

Report Metric	Details
Growth Rate	CAGR of 17.89%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Million
Segmentation	Component Deployment End-User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in the Responsible AI Market	Accenture Amazon Web Services IBM Alphabet Inc. Microsoft
Customization Scope	Free report customization with purchase

 

The Responsible AI Market is analyzed into the following segments:

• By Component
  • Software Tools & Platforms
  • Services
• By Deployment
  • On-Premises
  • Cloud
• By End-User
  • Healthcare
  • BFSI
  • Government and Public Sector
  • Automotive Industry
  • IT and Telecommunication
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5. RESPONSIBLE AI MARKET BY COMPONENTS

5.1. Introduction

5.2. Software Tools and Platforms

5.3. Services

6. RESPONSIBLE AI MARKET BY DEPLOYMENT 

6.1. Introduction

6.2. On-Premises

6.3. Cloud

7. RESPONSIBLE AI MARKET BY END-USER

7.1. Introduction

7.2. Healthcare

7.3. BFSI 

7.4. Government and Public Sector

7.5. Automotive Industry

7.6. IT and Telecommunication

7.7. Others

8. RESPONSIBLE AI MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Component

8.2.2. By Deployment 

8.2.3. By End-User

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Component

8.3.2. By Deployment 

8.3.3. By End-User

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Component

8.4.2. By Deployment 

8.4.3. By End-User

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Component

8.5.2. By Deployment 

8.5.3. By End-User

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Component

8.6.2. By Deployment 

8.6.3. By End-User

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. South Korea

8.6.4.4. India

8.6.4.5. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Accenture

10.2. Amazon Web Services

10.3. IBM

10.4. Alphabet Inc.

10.5. Microsoft

10.6. Intel Corporation

10.7. SAS Institute Inc.

10.8. C3 AI

10.9. FICO

10.10. H2o.ai

Accenture

Amazon Web Services

IBM

Alphabet Inc.

Microsoft

Intel Corporation

SAS Institute Inc.

C3 AI

FICO

H2o.ai