The AI governance market comprises products and solutions that help organizations develop, deploy, and monitor AI systems aligned with ethical, safety, and other regulatory standards. Some key AI governance tools include model documentation frameworks, data and model monitoring dashboards, model testing and evaluation suites, and technical and procedural oversight best practices. With the widespread adoption of AI across industries, AI governance has become a necessity to build trust in AI and address risks around bias, privacy issues, and lack of explainability.
The Global AI Governance Market is estimated to be valued at US$ 222.77 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the AI governance market are Groupe Emsland, Roquette FreÌ€res, The Scoular Company, COSUCRA – Groupe Warcoing, Ingredion Incorporated, Axiom Foods Inc., Yantai Shuangta Food Co. Ltd, Vestkorn Milling AS, Puris, Meelunie BV, AGT Food and Ingredients Inc., and Shandong Jianyuan Bioengineering Co. Ltd.
The growing adoption of AI technologies across industries is driving the need for AI governance. As AI systems take over more critical functions, organizations require tools and processes to ensure AI safety, reliability, and alignment with human values. Non-compliance with AI governance best practices can lead to financial and legal penalties.
The AI Governance Market Demand is expanding globally due to stringent regulations around AI development. Countries and regions are introducing new laws focusing on issues like data privacy, algorithmic transparency, and human oversight of AI. Vendors are enhancing their AI governance offerings to meet the compliance needs of the global customer base. Partnerships between governments and AI governance providers are also growing to develop governance frameworks.
Market key trends
Standardization of model cards and documentation is a key trend in the AI governance space. Model cards are emerging as a universal format to convey information about AI systems like intended use, evaluation results, limitations, and training methodology. Standardized documentation helps assess model risks objectively and facilitates oversight. Adoption of responsible and representative AI practices for mitigating bias in datasets and models is another major trend. Vendors are incorporating process changes, impact assessments, and techniques like preprocessing, data augmentation etc to build inclusive AI.
Porter’s Analysis
Threat of new entrants: The AI governance market requires significant investments in R&D, regulatory compliance, security and infrastructure which poses challenges for new entrants. Bargaining power of buyers: Large technology companies which are current and potential adopters of AI governance solutions have significant bargaining power over startup vendors and SME solution providers. Bargaining power of suppliers: AI governance solutions providers have flexibility in selecting between various software development and consulting partners minimizing dependence on any single supplier. Threat of new substitutes: Emerging technologies in adjacent markets like privacy enhancing technologies, autonomous vehicle safety technologies pose potential substitution threats over the long run. Competitive rivalry: Competition in the AI governance market is intensifying with focus on scalable and customizable solutions, comprehensive capabilities and speed of deployment.
Geographical regions
North America currently accounts for the largest share of the global AI governance market in terms of value mainly driven by technology giants and startups based in the US and Canada. Presence of major AI labs, research initiatives and venture capital funding have catalyzed rapid growth.
Asia Pacific region is expected to witness the fastest growth in the AI governance market during the forecast period led by countries like China, India and Japan. Significant AI deployment across industries, government initiatives for responsible and ethical use of AI along with growing tech landscape are facilitating increased adoption of specialized governance tools and platforms in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
