Explainable AI Market

Explainable AI Market - Size, Share, and Growth Drivers

The global explainable AI market is projected to expand/grow at a CAGR of 20.9% during the forecast period to reach USD 16.2 billion by 2028, size was valued USD 6.2 billion in 2023. Increasing regulations and requirements for transparency and accountability in AI systems drive the demand for Explainable AI solutions to ensure compliance with laws like GDPR and HIPAA.

The explainable AI market is poised for substantial growth in the coming years, driven by several key factors:

  • Regulatory Requirements
  • Ethical Considerations
  • Industry Adoption
  • Enhanced Trust and Acceptance
  • AI Model Performance

These factors collectively contribute to the expanding market for Explainable AI, driving innovation and adoption across various sectors and applications where AI plays a critical role in decision-making and operations.

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Regulatory Requirements: Increasing regulatory scrutiny and requirements for transparency and accountability in AI decision-making are driving the demand for explainable AI solutions across industries.

Ethical Considerations: Growing awareness and concerns about biases, fairness, and ethical implications of AI algorithms are pushing organizations to adopt XAI to ensure responsible AI deployment.

Industry Adoption: Various sectors, including finance, healthcare, legal, and government, are adopting AI technologies and increasingly demanding explanations for AI-driven decisions to build trust and improve decision-making processes.

Enhanced Trust and Acceptance: Explainable AI enhances trust and acceptance among users, stakeholders, and regulators by providing understandable insights into AI models' behavior and decisions.

AI Model Performance: As AI models become more complex and ubiquitous, there is a need to improve the interpretability and reliability of AI systems to ensure accurate performance and mitigate risks.

Explainable AI Market Share - Global Industry Landscape

The explainable AI market is characterized by the presence of several key players competing for market share. Some of the leading companies in the explainable AI industry include:

  • Microsoft (US)
  • IBM (US)
  • Temenos(Switzerland)
  • Seldon(London)
  • Squirro(Switzerland)

These offerings reflect each company's approach to XAI, leveraging their strengths in AI technology, data analytics, and industry-specific applications to provide explainable and trustworthy AI solutions.

Microsoft (US):

  • Market Share: Microsoft is a significant player in the XAI market, leveraging its Azure cloud platform and AI capabilities.
  • Key Offerings: Azure Machine Learning Interpretability (MLI) toolkit, which includes techniques like SHAP (Shapley Additive Explanations) and LIME (Local Interpretable Model-agnostic Explanations), helping to explain and interpret machine learning models.


  • Market Share: IBM is a major provider of AI and analytics solutions, including offerings in XAI.
  • Key Offerings: IBM Watson OpenScale, which provides explainability and transparency for AI models, allowing organizations to monitor and interpret AI decisions in real-time. IBM also offers tools like AI Explainability 360, an open-source library for XAI.

Temenos (Switzerland):

  • Market Share: Temenos primarily focuses on banking software and AI-driven analytics for financial services.
  • Key Offerings: While specific XAI offerings from Temenos are less detailed, the company integrates AI capabilities into its banking solutions, likely including explainability features to enhance decision-making transparency and compliance in financial services.

Seldon (London):

  • Market Share: Seldon is known for its expertise in machine learning deployment and operations, including XAI capabilities.
  • Key Offerings: Seldon Core, an open-source platform that helps organizations deploy, manage, and interpret machine learning models at scale, incorporating explainability features to ensure transparency and trust in AI-driven decisions.

Squirro (Switzerland):

  • Market Share: Squirro specializes in augmented intelligence and data insights solutions, including XAI.
  • Key Offerings: Squirro's AI-driven platforms provide contextual insights from unstructured data sources, with capabilities likely including XAI features to enhance transparency and interpretability of AI algorithms across industries like financial services, insurance, and manufacturing.

Related Reports:

Explainable AI Market by Offering (Solutions & Services), Software Type (Standalone Software, Integrated Software, Automated Reporting Tools, Interactive Model Visualization), Methods, Vertical and Region - Global Forecast to 2028

Explainable AI Market Size,  Share & Growth Report
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