Explainable AI Market Set to Surge Amid Industry 4.0 Expansion and Regulatory Compliance Push

The Explainable AI market is expected to grow from an estimated USD 6.51 billion in 2024 to USD 36.76 billion in 2033, at a CAGR of 21.20% . The global Explainable AI (XAI) market is experiencing significant growth, driven by the rapid advancement of Industry 4.0 and the increasing need for transparency in AI systems across sectors. As more industries embrace digital technologies like Artificial Intelligence (AI), the Internet of Things (IoT), and big data analytics, the demand for AI solutions that can be easily understood and trusted is rising.

Industry 4.0 is transforming how manufacturers operate, helping them improve efficiency through real-time insights and automated processes. A report from the MPI Group revealed that 32% of firms expect a 10% increase in profits due to Industry 4.0 innovations. Additionally, over half of manufacturers are adopting digital communications with suppliers to boost transparency and performance. In this context, Explainable AI becomes essential by offering clear insights behind AI-driven decisions, enabling better business outcomes.

Get Free Sample of this market research report At @ https://www.emergenresearch.com/request-sample/2952

XAI not only supports proactive decision-making but also improves how companies allocate resources, respond to challenges, and plan strategically. A recent example of this trend was seen in September 2024, when Qlik enhanced its AutoML capabilities to include stronger XAI features. These updates give users better visibility into AI forecasts, allowing businesses to act more confidently on data insights.

Regulatory Compliance Driving XAI Adoption

One of the major factors supporting the growth of the Explainable AI market is the growing importance of regulatory compliance. Across industries-especially in finance and healthcare-there is a strong need to understand and explain how AI makes decisions. Transparent AI systems help organizations meet strict legal requirements and build trust with customers and regulators.

In May 2024, Temenos launched Responsible Generative AI tools within its core banking platform. These tools feature built-in Explainable AI functions, making it easier for banks to safely implement AI while still offering clear, understandable insights.

Challenges in Talent Availability

Despite strong market potential, one key challenge remains: the shortage of trained professionals who specialize in Explainable AI. Building XAI systems requires advanced knowledge in machine learning and data interpretation, a combination that is currently in short supply. This gap in skilled talent is slowing down adoption across several industries.

Experts suggest that increased investment in education and training programs will be crucial to help bridge this gap and support the wider rollout of Explainable AI technologies.

Market Insights by Industry

The Explainable AI market is segmented by industry, with the IT and IT-enabled Services (IT/ITeS) sector leading in revenue as of 2023. The widespread use of 5G and IoT technologies in this sector is generating vast amounts of data, allowing businesses to build more advanced and responsive AI systems.

The Banking, Financial Services, and Insurance (BFSI) sector is the fastest-growing area in the Explainable AI market. Financial institutions are leveraging XAI to improve productivity, cut operational costs, and create more personalized and accessible financial products. XAI also helps lenders assess the creditworthiness of customers with limited financial histories, promoting greater financial inclusion.

To know more about the report, click here@ https://www.emergenresearch.com/industry-report/explainable-ai-market

Explainable AI Market Top Companies and Competitive Landscape

The XAI industry is growing rapidly with the increasing demand for AI system transparency in all of these areas. The competitive landscape includes key players like Microsof, IBM, Googie, Salesforce, Intel Corporation. Collaboration between these players and the advancement of techniques in machine learning will shape the future of Explainable AI and make it better and more effective as the market grows.

In May 2024, Temenos integrated Responsible Generative AI solutions into its Core Banking platform, improving productivity and data management. The proprietary Explainable AI capabilities enable openness and security, enabling banks to safely employ AI while delivering insights and reports using natural language inquiries.

Some of the key companies in the global Explainable AI Market include:

Microsoft

IBM

Google

Salesforce

Intel Corporation

NVIDIA

SAS Instlue

Aterx

AINS

Equfax

FICO

Temenos

Mphasis

C3.AI

H20 ai

Fiddler

Zes AI

Seldon

Squirro

Kyndi

DataRobot

Databricks

Tredence

DarinAl

Tensor Al solutions

EXPAI

Abzu

Arthur

Intellico

Explainable AI Market Latest Industry Updates

In June 2023, IBM announced the creation of a new platform for organizations called 'IBM Watsonx'. IBM's new platform enables businesses to accelerate operations by leveraging artificial intelligence solutions.

In April 2023, Google has announced the debut of the new Al enables Claims Acceleration Suite, which will streamline health insurance prior authorization and claims processing.

In May 2023, NVIDIA has announced a collaboration with Microsoft to advance enterprise-ready generative AI. The partnership entails combining NVIDIA Al Enterprise software with Microsoft Azure Machine Learning to assist organizations in developing Al models.

Explainable AI Market Market Segmentation Analysis

Offering Outlook (Revenue, USD Billion; 2020-2033)

Solutions

Solution By Type

Solution By Deployment Mode

Services

Consulting Services

Deployment and Integration Services

Training and Education Services

Post-Implementation Support

Data Science Advisory Services

AI/ML Research

AI/ML Enabled Services

Data Engineering Services

Software Type Outlook (Revenue, USD Billion; 2020-2033)

Standalone Software

Integrated Software

Automated Reporting Tools

Interactive Model Visualization

Method Outlook (Revenue, USD Billion; 2020-2033)

Model-Agnostic Methods

Model-Specific Methods

Vertical Outlook (Revenue, USD Billion; 2020-2033)

BFSI

Retail & eCommerce

IT/lTeS

Healthcare & Life Sciences

Government & Public Sector

Media & Entertainment

Manufacturing

Energy & Utilities

Telecommunications

Other Verticals

Quick Buy Explainable Ai Report@ https://www.emergenresearch.com/select-license/2952

The report offers a comprehensive breakdown of the regional analysis of the market and subsequent country-wise analysis. The regional analysis of the market comprises of production volume information, consumption volume and patterns, revenue, and growth rate for the forecast period of 2024-2033. According to the regional analysis, the market is primarily spread over key geographical regions as follows:

North America (U.S., Canada)

Europe (U.K., Italy, Germany, France, Rest of EU)

Asia Pacific (India, Japan, China, South Korea, Australia, Rest of APAC)

Latin America (Chile, Brazil, Argentina, Rest of Latin America)

Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of MEA)

Key Benefits of Buying the Global Explainable Ai Report:

Comprehensive analysis of the changing competitive landscape

Assists in decision making processes for the businesses along with detailed strategic planning methodologies

The report offers an 8-year forecast and assessment of the Global Explainable Ai Market

Helps in understanding the key product segments and their estimated growth rate

In-depth analysis of market drivers, restraints, trends, and opportunities

Comprehensive regional analysis of the Global Explainable Ai Market

Extensive profiling of the key stakeholders of the business sphere

Detailed analysis of the factors influencing the growth of the Global Explainable Ai Market

Thank you for reading our report. Please connect with us to know more about the report or the customization of the report. Our team will ensure the report is best suited to meet your requirements.

Contact Us:
Eric Lee
Corporate Sales Specialist
Emergen Research | Web: www.emergenresearch.com
Direct Line: +1 (604) 757-9756
E-mail: sales@emergenresearch.com
Visit for More Insights: https://www.emergenresearch.com/insights

About Us:

Emergen Research is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target, and analyse consumer behavior shifts across demographics, across industries, and help clients make smarter business decisions. We offer market intelligence studies ensuring relevant and fact-based research across multiple industries, including Healthcare, Touch Points, Chemicals, Types, and Energy. We consistently update our research offerings to ensure our clients are aware of the latest trends existent in the market. Emergen Research has a strong base of experienced analysts from varied areas of expertise. Our industry experience and ability to develop a concrete solution to any research problems provides our clients with the ability to secure an edge over their respective competitors.

This release was published on openPR.