May 26, 2024
AI Governance Market
Ict

AI Governance Market is expected to be Flourished by the Rapid Adoption of AI technologies in Industries

AI governance refers to the development and application of frameworks that are intended to ensure the safe and ethical development and application of artificial intelligence (AI) technologies. AI governance encompasses issues related to the impact of AI on jobs, wages, safety, privacy, accountability, and other economic and social considerations. As AI systems become more autonomous, concerns about rogue or biased algorithms that negatively impact users have prompted researchers and organizations to focus on governance strategies. The increasing deployment of AI technologies across industries has accelerated the need for AI governance best practices, principles, and standards.

The global AI governance market is estimated to be valued at US$ 246.18 Mn in 2024 and is expected to exhibit a CAGR of 28.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the growth of the AI governance market is the rapid adoption of AI technologies across industries. AI is finding widespread adoption in industries such as healthcare, automotive, manufacturing, retail, agriculture and many more. For instance, AI is being utilized for predictive maintenance of machines, predictive analytics, personalized product and service recommendations, and industrial automation among others. However, the lack of governance, transparency and accountability of AI systems poses regulatory, ethical and social risks. This has boosted the demand for AI governance frameworks, principles, standards and best practices to ensure the safe, transparent and fair use of AI.

Furthermore, the rapid adoption of AI technologies has increased concerns around potential bias, unfair treatment and adverse impacts of AI systems on users. For example, biased algorithms in healthcare AI or recruitment AI tools can negatively impact patient outcomes or hiring decisions. This has prompted calls for governance mechanisms like algorithmic transparency, accountability, and auditing to address such issues. Strict data privacy regulations like GDPR have also created a pressing need for AI governance strategies to ensure user data protection and privacy. Overall, the growing complexity of AI systems and their extensive socio-economic influence has accelerated the need for multi-stakeholder governance efforts to maximize the benefits of AI technology.

Segment Analysis

The AI Governance market can be segmented into solution, technology, type, deployment model and vertical. Based on solutions, the market can be divided into platforms and services. Among these, the platforms segment accounts for the largest share owing to growing need to build and deploy AI models. Platforms are further bifurcated into document analytics, visualization tools, policy management, compliance management and others.

Based on technology, the market is divided into machine learning, natural language processing and others. Among these, machine learning based governance platforms are dominating currently majorly focusing on algorithmic transparency and fairness.

PEST Analysis

Political: Stringent regulations regarding data privacy and security are pushing organizations to implement AI governance solutions. Regulations like GDPR aid the market growth.

Economic: Growing AI investments and huge economic benefits from AI driven insights further fuel the adoption of governance platforms to manage risks.

Social: Increasing concerns around algorithmic transparency, biasness drive the need for oversight on AI models to ensure public trust.

Technological: Advancements in machine learning, neural networks enable organizations to govern large and complex AI models. Technologies like predictive analytics also aid insights generation.

Key Takeaways

The Global AI Governance Market Demand is expected to witness high growth in the forecast period owing to increasing AI deployments across industries. The global AI governance market is estimated to be valued at US$ 246.18 Mn in 2024 and is expected to exhibit a CAGR of 28.8% over the forecast period 2024 to 2031.

Regionally, North America accounted for the largest share in 2024 primarily due to stringent regulations and extensive investments in AI by key players from the region like Google, Microsoft, IBM etc.

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. These players majorly focus on product launches and partnerships to expand their global footprints and offerings.

For instance, in 2021, Hugging Face partnered with Anthropic to provide AI safety solutions to govern language models and released Constitutional AI toolkit to enable responsible AI development practices. Further, acquisitions are also witnessed as part of consolidation and business expansion strategies in the AI Governance industry.

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