July 13, 2024
AI Governance Market
Ict

AI Governance Market is estimated to witness high growth owing to increasing Regulation and ethics concerns

The AI Governance Market is estimated to be valued at US$ 131.9 million in 2023 and is expected to exhibit a CAGR of 46.60% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
AI governance involves overseeing and managing how AI systems are developed and implemented to ensure safety, fairness, explainability and accountability. As AI becomes more autonomous, companies are focusing on adopting governance frameworks and best practices to align AI models with ethical, legal and social expectations. This helps build public trust and prevent potential harms.

Market key trends:
With AI and machine learning becoming more autonomous, regulation and ethics concerns around issues like algorithmic bias, data privacy, and explainability have increased significantly. Non-compliance to evolving regulations can lead to severe legal and financial consequences for organizations. As a result, more companies are proactively adopting AI governance strategies to ensure safe, fair and responsible development and use of AI technologies. For example, integrating techniques like model documentation and monitoring, impact assessments, privacy by design etc. This growing focus on accountability is a major factor fueling growth of the AI governance market.

Porter’s Analysis

Threat of new entrants: Low startup costs and intellectual property protections hinder new competitors. Bargaining power of buyers: Individual companies have low bargaining power however consortiums have more influence. Bargaining power of suppliers: A few prominent AI companies dominate the supply of technology limiting buyer options. Threat of new substitutes: Alternatives such as auditing tools pose a nascent threat. Competitive rivalry: Intense competition exists among major tech firms to lead in AI governance standards and solutions.

SWOT Analysis

Strengths: Established expertise and resources in AI/ML. Technical capabilities attract skilled workers and researchers. Weaknesses: Lack of unified strategy risks fragmentation. Performance depends on data access,compute power and collaboration.

Opportunities: Growing demand and regulations drive bigger markets. Partnerships across sectors spreading solutions.

Threats: Non-compliance damages reputation. Lack of explainability limits adoption and trust. Relying on proprietary tools risks lock-in.

Key Takeaways

The global AI Governance Market Size is expected to witness high growth, exhibiting CAGR of 46.60% over the forecast period, due to increasing regulations around AI ethics, safety and transparency. North America dominates currently due to presence of major tech companies and policy focus but APAC is emerging rapidly led by China, India and other nations promoting responsible innovation.

Regional analysis: Asia Pacific region is anticipated to grow at the fastest rate due to increasing focus of governments to adopt ethical AI practices and rapid digital transformation across industries in countries including China, Japan and India. Additionally, AI safety startups emerging in China and India are contributing to the market growth.

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. Major players are focused on partnerships to develop interoperable, scalable and interpretable solutions for model risk management, oversight and accountability.

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