Artificial Intelligence (AI) refers to the ability of a digital system to perform human-like cognitive tasks such as problem solving, reasoning, learning, perception, and decision making. AI governance ensures proper development and management of AI systems to maximize benefits and minimize risks. Rising need for AI oversight to curb consequences of erroneous, unethical, or unsafe AI models is driving adoption of AI governance solutions. The global Artificial Intelligence Governance Market is estimated to be valued at US$ 193.37 Mn in 2023 and is expected to exhibit a CAGR of 46.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rapid adoption of AI across industries is a major trend fueling growth of the AI governance market. AI technologies are witnessing widespread adoption across industries for various intelligent applications such as intelligent virtual assistants, predictive maintenance, and automated decision making. However, development of such autonomous AI systems elevates concerns regarding model accountability, transparency, and potential negative consequences of system failures or unintended behaviors. Thus, companies are increasingly integrating AI governance best practices and solutions to ensure responsible and ethical development of AI models and systems. Adoption of AI governance solutions allows organizations to address issues, demonstrate model accountability, and foster user trust in AI technologies.
SWOT Analysis
Strength: AI governance solutions offer explainability and transparency for AI models. This helps address issues around unfair or biased decisions.
Weakness: Lack of common standards for AI governance makes implementation challenging. Getting organizational buy-in for governance can also be difficult due to lack of understanding of the technology.
Opportunity: As AI use grows across industries, demand for oversight and accountability will rise significantly. This presents an opportunity for vendors to develop comprehensive governance solutions.
Threats: Non-compliance with regulations on AI use could result in legal penalties. Increasing instance of bias or unfairness in AI decisions may erode public trust in the technology.
Key Takeaways
The Global AI Governance Market Size is expected to witness high growth. Regional analysis comprises Asia Pacific region is poised to be the fastest growing regional market for AI governance solutions driven by rising adoption of AI across sectors in countries like China and India. North America currently dominates the market attributed to stringent regulations and increasing spending on developing responsible AI.
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 players are focusing on developing governance capabilities for monitoring bias and fairness, model risk assessment, explainability, privacy and more. Partnerships with domain experts are also being pursued to apply governance best practices for specialized use cases.
The global AI Governance market size for 2023 is US$ 193.37 Mn and is forecast to reach US$ 279.61 Bn by 2030, expanding at a CAGR of 46.6% during the forecast period of 2023 to 2030. Growing regulatory pressure around the world to ensure AI systems are developed and applied responsibly is driving increased investment in governance solutions.
