by The AI Governance Market is estimated to be valued at US$ 193.37 Mn or 193.37 Million in 2023 and is expected to exhibit a CAGR of 46.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
AI governance refers to frameworks used by organizations to ensure the safe, trustworthy and fair development and application of AI. It involves regulatory compliance from laws such as General Data Protection Regulation (GDPR), ethical standards defined in documents like Asilomar AI Principles and internal review processes to align AI systems with business values. AI governance solutions help organizations address challenges related to data privacy, safety, security, bias and transparency through tools for model risk assessment, data annotation and workflow management.
Market Dynamics:
The extensive adoption of cloud computing across various industries is expected to drive the growth of the AI governance market. Cloud platforms allow businesses to deploy AI solutions with ease while reducing infrastructure costs. They also provide necessary computing power and data storage capabilities required to develop large AI models. Additionally, the growing instances of algorithmic bias and concerns around job losses due to automation have increased the focus on responsible and ethical use of AI. Strict regulations around data privacy, especially in Europe and countries adopting the GDPR framework, are compelling organizations to implement oversight mechanisms for AI projects involving personal data. Adherence to regulatory standards helps gain consumer trust while mitigating legal and financial risks.
Segment Analysis
The AI Governance market can be segmented based on component, deployment, organization size and vertical. The services segment comprising of professional and managed services is dominating the market as organizations are increasingly adopting consulting, network management and cloud services to effectively integrate AI governance capabilities. The growing need to address the regulatory compliances and reduce algorithmic bias is driving the demand for services segment.
PEST Analysis
Political: Stringent regulations around data privacy, algorithms transparency and auditing are being introduced which is positively impacting the AI governance market growth. Economic: Organizations across industries are increasing investments in AI technologies to gain competitive advantage which is increasing the demand for tools and solutions to ensure accountability and oversight of AI systems. Social: Rising concerns around bias, unfair outcomes and lack of explainability of AI decisions are driving the need for governance solutions to build trust in AI systems. Technological: Advancements in machine learning, deep learning techniques and availability of troves of data are increasing the complexity of AI systems requiring robust governance strategies and mechanisms.
Key Takeaways
The Global AI Governance Market Size is expected to witness high growth, exhibiting CAGR of 46% over the forecast period, due to increasing regulatory pressures to ensure accountability, transparency and oversight of AI systems.
Regionally, North America captured the largest share in 2023 owing to stringent regulations around AI especially in sectors like healthcare and automotive. Asia Pacific is expected to witness the fastest growth during the forecast period backed by rapid digital transformation across industries in emerging economies and increasing tech adoption.
Key players operating in the AI Governance market are Facebook, Inc. (Meta Platforms Inc), IBM Corporation, Integrate.ai Inc., Google LLC (Alphabet Inc.), H2O.ai, Inc., SAP SE, SAS Institute Inc., Microsoft Corporation, Pymetrics Inc., FICO Inc., and Salesforce.com, Inc. Key players are focusing on developing comprehensive governance solutions comprising of techniques like model interpretation, debugging, monitoring and regulatory change management to address the increasing needs of trust, accountability and oversight in AI.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
