As reported by Next Move Strategy Consulting the global explainable AI market was valued at USD 6.68 billion in 2023 and is predicted to reach USD 24.58 billion by 2030, reflecting a CAGR of 21.3% from 2024 to 2030 due to growing adoption of AI in various sectors.

GLOBAL EXPLAINABLE AI MARKET OVERVIEW

The Explainable AI (XAI) market involves the development and implementation of technologies that enhance the transparency and interpretability of artificial intelligence systems. These solutions are designed to make AI decision-making processes more understandable and accountable, that is crucial for industries such as finance, healthcare, and legal services. XAI tools often integrate advanced algorithms, data visualization, and natural language processing to provide clear insights into how AI models operate and arrive at their conclusions.

The market is driven by the growing adoption of AI in various sectors. Despite facing challenges such as data privacy concerns, high implementation costs, and technical complexity, XAI is becoming essential for ensuring responsible AI deployment and fostering transparency in various sectors. As businesses seek to integrate AI more effectively and ethically, XAI solutions are playing a key role in transforming how AI technologies are understood and utilized.

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HIGHLIGHTS OF SALESFORCE INCORPORATION

Salesforce, Inc., a global leader in customer relationship management (CRM) solutions, achieved impressive financial results in 2023, with revenue reaching USD 34.86 billion, driven primarily by its subscription and support segment, which accounts for 93% of total revenue. Employing over 72,000 individuals worldwide, salesforce's strong market presence is evident, with 67% of its revenue coming from the Americas. The company reported a net profit of USD 4.14 billion in 2023 and continued its significant investment in innovation with over USD 4.9 billion allocated to research and development. Salesforce completed its largest acquisition to date with slack, reinforcing its position as the 1 AI CRM. The company's customer 360 platform enables the creation, testing, and delivery of cloud-based applications, offering tailored solutions for industries such as financial services, healthcare, and manufacturing. As part of its growth strategy, salesforce is leading the way in explainable ai, empowering businesses to connect with customers in innovative ways and providing clear, actionable insights, thus setting a benchmark for ai-driven solutions in CRM.

HIGHLIGHTS OF ALPHABET INC.

Alphabet Inc., a leading American multinational technology conglomerate, recorded a revenue of USD 307.39 billion and a net income of USD 73.80 billion in 2023. The company employed 182,502 people by the end of the year and operates through three primary segments: Google Services, Google Cloud, and Other Bets. Google Services includes a broad range of products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. Google Cloud offers infrastructure, platform services, and collaboration tools for enterprise customers, while Other Bets encompasses various smaller, non-material segments.

Alphabet’s global operations are significant, with the United States accounting for 48% of its revenue. The company’s substantial investment in research and development has grown from USD 21.42 billion in 2018 to USD 45.43 billion in 2023, reflecting a major commitment to technological advancement.

In December 2023, Alphabet introduced Gemini, its most advanced AI model, designed to be multimodal. This allows Gemini to process and integrate various types of information, including text, code, audio, images, and video, enhancing its versatility across Alphabet’s business segments. Alphabet’s emphasis on explainable AI is a key part of its strategy. By investing in robust AI technical infrastructure, the company aims to develop AI systems that are not only powerful but also transparent and understandable. This approach ensures that AI models like Gemini deliver clear insights into their decision-making processes, fostering trust and improving user experiences across Alphabet’s products and services.

HIGHLIGHTS OF IBM CORPORATION

IBM Corporation, a leading technology company, reported a revenue of USD 61.86 billion in 2023, with a gross profit of USD 34.30 billion. With a global workforce of 187,000 employees in over 175 countries, IBM has a strong presence, especially in the Americas, which provided 51% of its revenue. The company operates in four main segments: Software, Consulting, Infrastructure, and Financing. The Software segment is the largest, making up 43% of the market in 2023.

IBM is dedicated to innovation, increasing its research and development spending from USD 5.38 billion in 2018 to USD 6.78 billion in 2023. The company’s partnerships with leading tech firms such as AWS, Microsoft, SAP, Salesforce, and Adobe have strengthened its market position. The Partner Plus program supports these collaborations, helping to deliver new solutions to clients. In 2024, IBM plans to focus on hybrid cloud and AI, working closely with clients to drive digital transformation and create value.

In the Explainable AI (XAI) market, IBM's emphasis on AI and significant R&D investment position it as a leader. As the need for transparent and understandable AI increases, IBM's expertise and partnerships allow it to provide AI solutions that are both powerful and easy to understand.

HIGHLIGHTS OF INTEL CORPORATION

In 2023, Intel Corporation, a renowned leader in semiconductor manufacturing and technological innovation, achieved significant financial milestones with a revenue of USD 54.23 billion and a net income of USD 1.68 billion. Supported by a robust workforce of over 120,000 employees, Intel operates through five primary segments: Client Computing, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services. Among these, Client Computing emerged as the most prominent segment, capturing a substantial 54% of the market share. Intel’s global operations are extensive, with 74% of its revenue generated from international markets. China alone contributed 27% to the company’s total revenue.

Intel’s investment in research and development is substantial, totalling USD 16.046 billion in 2023, despite an 8% decrease from 2022, due to cost-cutting measures offset by higher incentive-based cash compensation. The company’s product portfolio is diverse, encompassing solutions for data centers, network infrastructure, PCs, edge computing, and emerging technologies like AI and autonomous driving. In 2023, Intel introduced several groundbreaking products, including the 13th Gen Intel Core mobile processors, the 4th Gen Intel Xeon Scalable processors with Intel vRAN Boost, and the Intel Core Ultra processors featuring integrated neural processing units. These innovations are designed to enhance AI acceleration and drive advancements across various sectors.

A crucial aspect of Intel's innovation strategy is its emphasis on explainable AI. As AI technologies become more integral to its products, including advanced processors and data center solutions, Intel is committed to developing systems that are not only powerful but also transparent. By investing in explainable AI, Intel ensures that its AI models provide clear, understandable insights into their decision-making processes.

HIGHLIGHTS OF MICROSOFT CORPORATION

Microsoft achieved remarkable success in 2022, recording a revenue of USD 211.92 billion, supported by a workforce of over 220,000. This impressive figure highlights a 47% revenue increase over the past four years. Operating through four primary segments—Client Productivity and Business Processes, Intelligent Cloud, More Personal Computing, and others—the company saw its Intelligent Cloud segment lead with a 41% market share, while domestic sales in the U.S. contributed 50.4% of the total revenue.

Microsoft’s commitment to innovation is evident in its substantial investment in research and development. Spending on R&D has soared from USD 16.88 billion in 2018 to USD 27.20 billion in 2022. This investment underpins three core ambitions: revolutionizing productivity and business processes, advancing cloud and edge platforms, and pushing the boundaries of personal computing.

The company continues to lead in technology innovation, driving advancements in AI, cloud computing, and personal productivity. In February 2023, Microsoft unveiled an AI-powered version of its Edge browser and Bing search engine, featuring Bing Chat for enhanced search and content generation. This move not only demonstrates Microsoft’s leadership in AI but also its dedication to explainable AI, ensuring that users can easily interpret and trust the AI’s decisions and recommendations. Additionally, the company introduced the first online Professional Certificate on Generative AI with LinkedIn Learning and developed AI tools for educators, highlighting its focus on building responsible and comprehensible AI systems. Through these advancements, Microsoft is setting a high standard for integrating explainable AI into its technologies, enhancing user trust and engagement across its platforms.

SUMMARY OF EXPLAINABLE AI MARKET

The Explainable AI (XAI) market is growing rapidly as organizations seek to make AI systems more transparent and understandable. XAI aims to create AI models that provide clear, human-readable explanations for their decisions, that is crucial for building trust and ensuring compliance with regulations. The market is driven by the increasing adoption of AI across various industries, the need for transparency in AI decision-making, and regulatory requirements. Some of the key players in this market include technology giants such as Salesforce, Alphabet, IBM, Microsoft among others who dominate the development and deployment of explainable AI solutions.  By focusing on transparency, these companies help clients understand and trust AI systems, promoting broader adoption and more effective AI deployment.

About The Author:

Arjun Chetry is an accomplished researcher and writer with a history of more than three years of conducting thorough research. With a professional background as a research analyst, he has a keen eye for analyzing industry trends and understanding consumer behavior. His dedication to exploring diverse subjects and conducting in-depth analyses has equipped him with a deep understanding of research intricacies. He remains committed to staying up-to-date with the latest market trends and recognizing their impact on business and society. His well-rounded interests and experiences contribute to his ability to offer insights and perspectives on various topics. The author can be reached at info@nextmsc.com