The AI evaluation market is projected to reach $5.78 billion by 2029, growing at 45.3% annually. That number exists for one reason: companies are deploying AI faster than they are checking its output.
In real estate, AI writes listing descriptions, generates valuations, and drafts disclosures. In lending, it underwrites loans, flags fraud, and communicates with borrowers. In insurance, it processes claims, assesses risk, and generates policy language.
But who is evaluating whether any of that output is accurate?
🚨 The Hallucination Problem Is a Compliance Problem
When AI hallucinates a property feature — that is not a tech glitch; that is a disclosure violation. When lending AI miscalculates risk — that is not a model error; that is a fair lending issue. When insurance AI generates incorrect policy language — that is not a software bug; that is a liability exposure.
Seven venture-backed platforms have raised hundreds of millions to solve this problem: Arize AI, Credo AI, Lakera, Arthur AI, Patronus AI, Galileo AI, and ValidMind. All of them were built for Fortune 500 CTOs with $500,000 technology budgets.
AI Evaluation Market Growth: $0.6B (2022) → $5.78B (2029) at 45.3% CAGR
🏟️ The Market Gap Nobody Is Filling
The enterprise platforms have captured the largest logos in the world:
- Credo AI sells to Mastercard, Microsoft, and Amazon.
- Arize AI processes more than 1 trillion data spans for DoorDash and Uber.
- ValidMind was built for regulated financial institutions — at enterprise-only pricing.
- Lakera defends AI for Dropbox and Pearson.
None of them are accessible to a 200-person mortgage company in Dallas, a regional insurance carrier in Atlanta, or a real estate brokerage in Phoenix. These are the organizations facing the highest regulatory pressure and the fewest viable tools.
85% of regulated mid-market firms have no accessible AI governance platform
🔍 What "AI Evaluation" Actually Means
Strip away the venture capital jargon — LLM observability, AI TRiSM, model risk management — and the real question is simple:
"Is the AI output we are using accurate, compliant, and safe to act on?"
- 🏠 Real estate needs AI listing description checks against MLS disclosures and fair housing rules.
- 🏦 Lending needs TILA/RESPA compliance verification on AI-assisted underwriting outputs.
- 🛡️ Insurance needs AI claims language matched against actual policy terms.
📉 The Evaluation Gap Is a Business Risk
Deploying AI without evaluation is not saving money — it is borrowing against future compliance violations. Every unaudited AI-generated document your organization acts on represents potential regulatory exposure that compounds with each deployment cycle.
The firms that aren’t saving money are borrowing it — and the bill arrives as an enforcement action, a lawsuit, or a regulatory suspension.
🚀 The Gap Frisby AI Operations Was Built to Close
Human-tested AI Command Centers and operational guides designed for the industries that need evaluation most — at a price point that does not require a Fortune 500 budget.
✅ 6 specialized AI agents — purpose-built for regulated industries
✅ 14 industries served — real estate, lending, insurance, healthcare, and more
✅ 9 regulatory frameworks — ECOA, FCRA, RESPA, HUD, HIPAA, SEC, CFPB, and more
✅ Results in under 5 seconds — with 256-bit encryption and zero data retention
Plans start at just $29/month. Free tier: 10 audits/month. No credit card required.
👉 Start your free audit at frisbyaiops.com
📧 contact@frisbyaiops.com | 📞 281-638-4704
About the Author: John Frisby brings 25 years of experience in business operations, finance, and logistics. Frisby AI Operations is an enterprise AI accuracy and governance platform based in Houston, Texas, purpose-built to help compliance teams in regulated industries detect hallucinations, enforce regulatory frameworks, and reduce AI-related risk. Learn more at www.frisbyaiops.com.
