AI Governance Market

Rising implementation of AI systems to drive the growth of AI Governance Market

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The global 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 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The AI Governance market involves developing and using methods and techniques to ensure the safe, ethical, and robust behavior of AI systems. This includes monitoring AI systems for biases or unfair treatment and responding appropriately to issues as they emerge. As organizations rely more on AI to automate processes and drive decisions, it is critical to properly govern these systems to mitigate risks and safeguard users and customers. If not addressed, issues like unfair treatment, algorithmic bias, lack of transparency, and unintended consequences could severely damage user trust and brand reputation. AI governance solutions help organizations design, develop, and deploy AI in an ethical and responsible manner.

Market key trends:

The key trends in the AI Governance market include growing regulatory pressure around AI ethics and accountability, increasing focus on addressing algorithmic bias and fairness in high-risk applications, and adoption of multi-stakeholder governance models. Regulators around the world are developing new laws and guidance focused on transparency, explainability, accountability, and mitigation of harms from AI systems. As organizations deploy AI in domains like healthcare, criminal justice and recruiting, they are under pressure to ensure these systems do not discriminate or disadvantage protected groups. Many companies are also establishing internal multidisciplinary teams and external advisory boards to bring diverse perspectives into oversight of AI product development and usage.

Porter’s Analysis

Threat of new entrants: The AI Governance market poses medium threat for new entrants due to presence of key players and high capital requirement for research and development.
Bargaining power of buyers: Buyers in the AI Governance market have medium bargaining power due to availability of substitutes and differentiated offerings by vendors.
Bargaining power of suppliers: Suppliers have low to medium bargaining power, as the market has a large number of raw material suppliers and differentiated skillsets.
Threat of new substitutes: Threat from new substitutes is medium as AI based services can be developed internally by organizations.
Competitive rivalry: The AI Governance market experiences high competitive rivalry among key global players due to their international presence and technological expertise.

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 demand for reducing risks associated with AI. North America is expected to dominate the global AI Governance market during the forecast period. The region has witnessed increased adoption of AI technology across various sectors including healthcare, manufacturing, and automotive. Asia Pacific region is expected to exhibit the highest CAGR during the forecast period. Proliferation of AI technologies, increasing investments by tech-giants, and supportive government policies and initiatives are likely to drive the regional market.

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. Facebook and IBM have a strong focus on AI safety and have invested heavily in research and development of governance solutions. Integrate aims to build ethics into AI from the start through its governance solutions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it