Region:Middle East
Author(s):Geetanshi
Product Code:KRAC3819
Pages:89
Published On:October 2025
By Component:The market is segmented into solutions and services. Solutions include software and tools that facilitate explainable AI, while services encompass consulting, integration, and support services. Solutions represent the largest share, reflecting the strong demand for platforms that provide model transparency, interpretability, and compliance reporting. Services are increasingly sought after for implementation, customization, and ongoing support as organizations scale their AI initiatives .
The solutions segment is leading the market due to the increasing adoption of AI technologies across industries such as banking, healthcare, and government. Organizations are investing in software that provides transparency and interpretability of AI models, which is crucial for regulatory compliance and building user trust. The demand for advanced analytics and machine learning tools that offer explainability is driving growth in this segment, as businesses seek to leverage AI while ensuring ethical practices .
By Method:The market is segmented into model-agnostic methods, model-specific methods, post-hoc explanation techniques, and others. Each method offers distinct approaches to achieving explainability in AI systems. Model-agnostic methods are preferred for their flexibility and compatibility with diverse AI models, while model-specific methods and post-hoc techniques address specialized use cases in regulated industries .
Model-agnostic methods dominate the market as they provide flexibility across various AI models, allowing organizations to implement explainability without being tied to specific algorithms. This adaptability is crucial for businesses that utilize diverse AI systems. The growing emphasis on transparency and accountability in AI decision-making processes is further propelling the adoption of these methods, making them a preferred choice among enterprises .
The Saudi Arabia Explainable AI Market is characterized by a dynamic mix of regional and international players. Leading participants such as IBM Corporation, Microsoft Corporation, Google LLC (Alphabet Inc.), DataRobot, Inc., DarwinAI, Factmata, Kyndi, Amelia, BuildGroup, Ditto, SAS Institute Inc., H2O.ai, Inc., Accenture PLC, Salesforce.com, Inc., FICO (Fair Isaac Corporation) contribute to innovation, geographic expansion, and service delivery in this space .
The future of the explainable AI market in Saudi Arabia appears promising, driven by increasing government support and a growing emphasis on ethical AI practices. As organizations across various sectors recognize the importance of transparency and accountability, the demand for explainable AI solutions is expected to rise. Furthermore, advancements in AI technologies and frameworks will likely facilitate the development of more user-friendly and cost-effective explainable AI tools, enhancing their adoption in the coming years.
| Segment | Sub-Segments |
|---|---|
| By Component | Solutions Services |
| By Method | Model-Agnostic Methods Model-Specific Methods Post-Hoc Explanation Techniques Others |
| By End-User | Healthcare Finance Retail Government Others |
| By Application | Fraud & Anomaly Detection Risk Management Customer Insights Compliance Monitoring Others |
| By Deployment Mode | On-Premises Cloud-Based Hybrid |
| By Region | Central Region Eastern Region Western Region Southern Region |
| By Pricing Model | Subscription-Based Pay-Per-Use One-Time License Fee Others |
| Scope Item/Segment | Sample Size | Target Respondent Profiles |
|---|---|---|
| Healthcare AI Implementations | 60 | Healthcare IT Managers, Data Scientists |
| Financial Services AI Applications | 50 | Risk Analysts, Compliance Officers |
| Retail AI Solutions | 45 | Marketing Directors, E-commerce Managers |
| Government AI Initiatives | 40 | Policy Makers, Technology Advisors |
| Education Sector AI Adoption | 40 | Academic Researchers, IT Coordinators |
The Saudi Arabia Explainable AI Market is valued at approximately USD 130 million, reflecting a significant growth driven by the demand for transparency in AI systems and regulatory compliance across various sectors, including healthcare and finance.
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