AI Governance Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 264.18 Million |
| Market Size (2029) | USD 936.44 Million |
| CAGR (2024 - 2029) | 28.80 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
AI Governance Market Analysis
The AI Governance Market size is estimated at USD 264.18 million in 2024, and is expected to reach USD 936.44 million by 2029, growing at a CAGR of 28.80% during the forecast period (2024-2029).
- Increasing consumer concerns over privacy, abuse, and bias are propelling the demand for artificial intelligence (AI) governance. Ensuring the delivery of ethical and transparent AI stands as a primary objective of AI governance, aiming to establish accountability, oversight, and responsibility.
- Businesses are increasingly leveraging AI in their operations to boost efficiency and cut costs through automation.
- Furthermore, the heightened consumer focus on privacy, misuse, and bias drives the push for ethical and transparent AI, emphasizing the need for accountability and oversight.
- Artificial intelligence and machine learning stand out as pivotal technologies reshaping the world. In today's challenging economic landscape, where governments globally grapple with tight budgets and limited public funding, AI's ability to optimize resources and tackle complex issues is paramount.
- AI developers, engineers, researchers, and data scientists are the most sought-after talents in this landscape. Enterprises must pinpoint skill gaps and prioritize areas for enhancement.
- The accelerated digitization due to the pandemic has spiked the demand for AI services, fueling the AI governance market. According to Salesforce, the need for AI and skilled AI professionals increased post-pandemic.
AI Governance Market Trends
The Retail Sector is Expected to Witness Significant Growth
- The global retail sector is undergoing a significant transformation as customers, especially digital natives, alter their channel preferences and purchasing behaviors. With this digital shift, the focus on data, crucial for digital transformation, has intensified.
- Effective AI management is now a cornerstone for retailers looking to enhance their performance, tackle common hurdles, and outpace both traditional retail rivals and agile direct-to-consumer brands. Governance, streamlining data access, is pivotal for swift decision-making.
- Retailers are embracing cutting-edge technologies, notably artificial intelligence (AI) and machine learning. However, as they integrate these technologies, they must do so alongside robust ethics frameworks. Crafting a code of conduct not only fosters good data management practices but also guides the broader spectrum of company activities.
- Some retailers have excelled in three critical areas on their AI journey: swiftly transforming and replacing existing systems, adhering to data security regulations, and finding the delicate balance between strategic priorities and available resources. These successes underscore their readiness for increased AI adoption.
- Retailers are also gearing up their workforce for the global deployment of end-to-end AI solutions. This strategic move not only enhances their operational efficiency but also opens up significant market opportunities. For instance, a major retailer recently launched an extensive training program to upskill its 40,000 employees for the AI revolution.
North America Holds Largest Market Share
- North America, one of the first countries to adopt artificial intelligence technologies, is expected to have an enormous impact on this market. For example, in order to help organizations across the country incorporate ethical considerations into research and development without compromising public involvement and better marketing of an organization, the US National Artificial Intelligence Research and Development Plan recommended the development of a framework for the implementation of AI research and development.
- In order to remain competitive in the market, North American organizations, especially those based in the United States, make use of all the benefits of AI, ML, and Deep Learning technology. The country's economy is well established, making it easier for AI and governance vendors to make investments in new technologies. Moreover, the fact that some of the most important IT firms are introducing intelligent devices and working together with others in the area of AI governance is considered to be a hub for innovation.
- The potential of AI regulation in the United States has been given considerable attention recently due to concerns regarding large tech, as well as impacts on technologies such as facial recognition. The US strategy for artificial intelligence has been an important topic for academics, policymakers, and industry.
- Many Canadian organizations are already using machine-learning tech to automate key operations, generate critical insights, upgrade customer interactions, and inform strategic decisions.
AI Governance Industry Overview
The intensity of competitive rivalry in the market is expected to remain high during the forecast period. Major players include IBM Corporation, Google LLC (Alphabet Inc.), SAP SE, Microsoft Corporation, and FICO Inc.
- October 2023: IBM Corporation acquired Manta Software Inc., with Manta’s data lineage capabilities helping increase transparency within Watsonx. This will allow businesses to determine whether the right data was used for their AI models and systems, where it originated, how it has evolved, and any discrepancies in data flows and help deliver products that are built on principles of trust and transparency.
- August 2023: SAP SE and Google Cloud announced a partnership in order to improve the enterprises harness the power of data and generative AI, where the companies will combine their integrated open data cloud using SAP Datasphere with Vertex AI to launch new generative AI-powered industry solutions starting with automotive and introduce new capabilities to help customers improve sustainability performance.
AI Governance Market Leaders
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Microsoft Corporation
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IBM Corporation
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SAP SE
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Google LLC (Alphabet Inc.)
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FICO Inc.
*Disclaimer: Major Players sorted in no particular order
AI Governance Market News
- October 2023: SAP SE collaborated with Accenture to expand its capabilities in SAP Business AI technology and SAP Business Technology Platform (SAP BTP) to help clients power critical business processes in the cloud and enhance how enterprise users interact with SAP applications.
- August 2023: FICO Inc. launched a cloud-based platform in Indonesia. The technologies enabled on the FICO platform were designed to boost the growth of the business landscape by providing the latest advanced analytics and AI capabilities to foster growth, strengthen customer connections, and enable enterprise transformation.
AI Governance Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
-
4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Assessment of Impact of COVID-19 on the Industry
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Growing Demand for Transparency in AI Decision Making
- 5.1.2 Expanding Government Initiatives to Leverage the AI Technology
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5.2 Market Restraints
- 5.2.1 Inadequate AI Expertise and Skills can Act as a Restraint
6. MARKET SEGMENTATION
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6.1 By Component
- 6.1.1 Solution
- 6.1.2 Service
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6.2 By Deployment
- 6.2.1 On-Premise
- 6.2.2 Cloud
-
6.3 By End-user Vertical
- 6.3.1 Healthcare
- 6.3.2 Government and Defense
- 6.3.3 Automotive
- 6.3.4 Retail
- 6.3.5 BFSI
- 6.3.6 Other End-user Verticals
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6.4 By Geography***
- 6.4.1 North America
- 6.4.1.1 United States
- 6.4.1.2 Canada
- 6.4.2 Europe
- 6.4.2.1 United Kingdom
- 6.4.2.2 Germany
- 6.4.2.3 France
- 6.4.3 Asia
- 6.4.3.1 China
- 6.4.3.2 India
- 6.4.3.3 Japan
- 6.4.4 Australia and New Zealand
- 6.4.5 Latin America
- 6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 IBM Corporation
- 7.1.2 Google LLC (Alphabet Inc.)
- 7.1.3 SAP SE
- 7.1.4 Microsoft Corporation
- 7.1.5 FICO Inc.
- 7.1.6 Salesforce.com Inc.
- 7.1.7 Pymetrics Inc.
- 7.1.8 SAS Institute Inc.
- 7.1.9 H2O.ai Inc.
- 7.1.10 Integrate.ai Inc.
- 7.1.11 Facebook Inc. (Meta Platforms Inc.)
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablityAI Governance Industry Segmentation
AI governance is the concept that promotes the establishment of legal frameworks for facilitating the ethical deployment of machine learning (ML) and other AI-based technologies.
The AI governance market is segmented by component (solution and service), deployment (cloud and on-premise), end-user vertical (healthcare, government and defense, automotive, retail, BFSI, and other end-user verticals), and geography (North America (United States and Canada), Europe (United Kingdom, Germany, France, and the Rest of Europe), Asia-Pacific (China, India, Japan, and the Rest of Asia-Pacific), and the Rest of the World. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | Solution | |
| Service | ||
| By Deployment | On-Premise | |
| Cloud | ||
| By End-user Vertical | Healthcare | |
| Government and Defense | ||
| Automotive | ||
| Retail | ||
| BFSI | ||
| Other End-user Verticals | ||
| By Geography*** | North America | United States |
| Canada | ||
| By Geography*** | Europe | United Kingdom |
| Germany | ||
| France | ||
| By Geography*** | Asia | China |
| India | ||
| Japan | ||
| By Geography*** | Australia and New Zealand | |
| Latin America | ||
| Middle East and Africa |
AI Governance Market Research Faqs
How big is the AI Governance Market?
The AI Governance Market size is expected to reach USD 264.18 million in 2024 and grow at a CAGR of 28.80% to reach USD 936.44 million by 2029.
What is the current AI Governance Market size?
In 2024, the AI Governance Market size is expected to reach USD 264.18 million.
Who are the key players in AI Governance Market?
Microsoft Corporation, IBM Corporation, SAP SE, Google LLC (Alphabet Inc.) and FICO Inc. are the major companies operating in the AI Governance Market.
Which is the fastest growing region in AI Governance Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in AI Governance Market?
In 2024, the North America accounts for the largest market share in AI Governance Market.
What years does this AI Governance Market cover, and what was the market size in 2023?
In 2023, the AI Governance Market size was estimated at USD 188.10 million. The report covers the AI Governance Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the AI Governance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
AI Governance Industry Report
Statistics for the 2024 AI Governance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. AI Governance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
