The AI governance market is estimated to be valued at US$ 193.37 Mn in 2023 and is expected to exhibit a CAGR of 46% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
AI governance refers to frameworks that ensure the safe, ethical, and robust development and application of AI technologies. It helps align AI and machine learning systems with human values, facilitate oversight, and ensure algorithmic accountability. Key challenges addressed by AI governance solutions include bias mitigation, transparency, privacy, safety, and continuous monitoring. Industries employing AI governance solutions include healthcare, telecommunications, IT, government, and defense among others.
Growing importance of regulating AI technologies to address model risks and potential harm is expected to drive the growth of the AI governance market over the forecast period. Further, increasing demand for transparency, privacy, and accountability of algorithms is escalating the need to govern AI systems. Additionally, rising number of large scale deployments of AI across organizations has led to increasing focus on solutions to mitigate risk and ensure performance oversight of intelligent systems. However, lack of common governance standards and limited technical expertise could hamper market growth during the forecast period.
Strength: AI governance leverages machine learning techniques to ensure transparency, accountability, and fairness. Three major strengths are ethics-aware model development, privacy protection capabilities, and detection of algorithmic bias.
Weakness: Developing comprehensive AI governance solutions requires significant resources and expertise. Data quality and access issues can undermine model performance. Implementation challenges arise due to technical complexities and organizational barriers.
Opportunity: Growing demand from regulated industries like healthcare and government creates market opportunities for AI governance vendors. Regulations like GDPR increase compliance requirements and the need for oversight. Advancements in techniques like causal inference and counterfactual explainability expand the scope of governance.
Threats: Competing priorities and lack of understanding within companies can reduce investment in governance. Alternative approaches focusing solely on technical or process aspects pose fragmented solutions. Adversarial examples and model evolution over time challenge effective monitoring and control.
The Global AI Governance Market Size is expected to witness high growth, exhibiting a CAGR of 46% over the forecast period, due to increasing regulatory pressures and ethics-related concerns around AI applications.
Regional analysis: North America dominates the global AI governance market currently, owing to strict privacy laws and advanced adoption of regulatory frameworks. Asia-Pacific is expected to grow at the fastest pace, with rising investments in AI governance by key players against the backdrop of a growing number of AI projects in countries like China and India.
Key players analysis: 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. These major vendors are focusing on various organic and inorganic growth strategies like partnerships, new service launches, and collaborations to garner higher market share.