The Latin America, Middle East and Africa Explainable AI Market would witness market growth of 22.3% CAGR during the forecast period (2025-2032).
The Brazil market dominated the LAMEA Explainable AI Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $449 million by 2032. The Argentina market would showcase a CAGR of 23.2% during (2025 - 2032). Additionally, The UAE market would register a CAGR of 21.2% during (2025 - 2032).
Global technology vendors and start-ups alike are racing to integrate XAI functionalities into their AI offerings. Major cloud service providers, such as Microsoft Azure, Google Cloud, and AWS, now offer explainability tools and dashboards as part of their AI suites. These tools empower data scientists and business users to interpret, debug, and validate model decisions more effectively. Meanwhile, regulatory frameworks—including the aforementioned GDPR, the US Equal Credit Opportunity Act, and the Algorithmic Accountability Act—are compelling organizations to invest in explainable systems as part of compliance strategies.
However, adoption is not without challenges. XAI often introduces trade-offs between model performance and interpretability, requiring organizations to balance accuracy with transparency. Additionally, the maturity of XAI solutions varies across industries and use cases; while some areas benefit from robust, out-of-the-box explainability frameworks, others—particularly those involving unstructured data or highly complex models—may find current XAI techniques lacking. Despite these hurdles, a growing body of research, improved toolkits, and evolving best practices are helping to accelerate XAI adoption across the enterprise landscape.
Brazil is emerging as a regional leader in the development and adoption of explainable AI (XAI), supported by forward-looking government policies, a vibrant technology sector, and a growing demand for responsible AI across industries. The country’s National Artificial Intelligence Strategy (“Estratégia Brasileira de Inteligência Artificial”) emphasizes the principles of transparency, fairness, and accountability, with explainable AI positioned as a foundational element for trustworthy digital transformation. Brazil’s regulatory focus is strengthened by the Lei Geral de Proteção de Dados (LGPD), the country’s comprehensive data protection law, which mandates transparency in the automated processing of personal data. As a result, organizations developing and deploying AI models must ensure these are not only accurate but also interpretable and auditable.
Free Valuable Insights: The Worldwide Explainable AI Market is Projected to reach USD 22.20 Billion by 2032, at a CAGR of 20.4%
Based on Deployment, the market is segmented into Cloud and On-premise. Based on Component, the market is segmented into Solution and Services. Based on Application, the market is segmented into Fraud & Anomaly Detection, Drug Discovery & Diagnostics, Predictive Maintenance, Supply Chain Management, and Identity, Access Management & Others. Based on End-use, the market is segmented into IT & Telecommunication, Healthcare, BFSI, Aerospace & Defense, Retail & E-commerce, Public Sector & Utilities, Automotive, and Other End-use. Based on countries, the market is segmented into Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria, and Rest of LAMEA.
By Deployment
By Component
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By End-Use
By Country
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