Modelling Approach Summary

Our market size estimates are the product of triangulating across three different yet converging modelling approaches. Each method utilises slightly different methodologies, alternative underlying datasets, and changes to the benchmarks used in the calculations. In brief, each approach can be summarised as follows (note: refer to the appendix for additional details on the methodology).

	Modelling Approaches
	Method One: Our simplest top-down approach is grounded in the median value of researched estimates for the total market for AI technologies. From here we apply publicly-available statistics related to proportions of spending on governance, risk management, and compliance (GRC) -related expenditures, the degree of outsourced or third-party spending, and the scale of the AIAT market made-up of non-AI companies.
	Method Two: Here we estimate AIAT growth by referring to the scale of existing, comparable sub-industries that fulfil similar functions to AIAT companies, including but not limited to: cybersecurity, financial auditing, incident response, trust and safety, and more. We apply industry growth rates, ratios that attribute growth to AI technologies, adoption rates by industry, and estimates of enterprise AI risk preparedness.
	Method Three: This approach estimates the growth of major global sectors, their adoption of AI-centric systems, and the proportion of spending invested in ensuring control over the potential risks or regulatory requirements related to AI. We start by aggregating datasets on sectors such as: consumer goods and retail; healthcare; media and telecommunications; automotive and manufacturing; and more. We then apply estimates for IT spending, AI spending, and GRC expense ratios.