July 19, 2024
AI Governance Market
Ict

AI Governance is the largest segment driving the growth of AI Governance Market

The global AI Governance Market is estimated to be valued at US$ 193.37 Mn or 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 and processes put in place by organizations to ensure the safe, ethical and aligned development and application of artificial intelligence. AI governance helps align AI and machine learning initiatives with human values, priorities and objectives through transparency, explainability, and accountability mechanisms.

Market key trends:

One of the major trends in the AI governance market is the increasing focus of organizations on managing risks around unfair or biased outcomes from AI systems. With AI adoption increasing across various domains like healthcare, education, recruitment, etc. the potential for unintentional bias in AI decisions and recommendations poses regulatory and compliance challenges. Organizations are increasingly focusing on embedding transparency and accountability in AI systems right from the design and development stage to address potential bias, discrimination or unfair outcomes. Comprehensive testing, auditing of AI models and oversight of high-risk applications is crucial for organizations to ensure appropriate AI governance.

Market key trends:

One of the key trends in the AI governance market is the adoption of techniques like interpretability, explainability, and transparency of AI systems. With the increasing use of AI across many critical domains, regulators and users demand techniques that can help audit and understand how and why AI systems make certain decisions. AI governance solutions that help incorporate principles of fairness, ethics and accountability into AI systems are becoming increasingly important.

SWOT Analysis

Strengths: AI governance ensures responsible and ethical development and use of AI. It helps address risks and builds trust in AI.
Weaknesses: Lack of common standards in AI governance. Implementation of governance frameworks requires additional costs and efforts.
Opportunities: Growing regulatory focus on AI accountability and safety worldwide. Increase in demand for managing risks of bias and unfair outcomes in AI.
Threats: Failure to comply with governance norms can lead to legal issues, financial losses and damage to brand reputation. Technical challenges in interpreting complex AI models.

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 focus on AI safety and accountability.

The North America region is expected to dominate the global AI governance market during the forecast period. This is attributable to factors such as presence of major AI companies and growers R&D investments in the region. Asia Pacific region is expected to exhibit the highest growth rate over the forecast period due growing adoption of AI technologies across various sectors in China, India, and other developing countries of the region.

Key players operating in the AI governance 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. Major players are focusing on developing advanced AI governance solutions and services and expanding into other potential markets through collaborations.

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