AI Governance Market Size (2024 - 2029)

The AI Governance Market is experiencing significant growth driven by increasing consumer concerns over privacy, abuse, and bias, which are fueling the demand for ethical and transparent AI. This market expansion is further supported by the accelerated digitization trends post-pandemic, as businesses increasingly adopt AI to enhance efficiency and reduce costs. The need for accountability and oversight in AI applications is becoming paramount, particularly as governments face budget constraints and seek to optimize resources. Consequently, there is a heightened demand for skilled professionals in AI-related fields, as enterprises aim to address skill gaps and enhance their capabilities.

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Market Size of AI Governance Industry

AI Governance Market Summary
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

AI Governance Market 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 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
Europe
United Kingdom
Germany
France
Asia
China
India
Japan
Australia and New Zealand
Latin America
Middle East and Africa
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AI Governance Market Size Summary

The AI governance market is poised for significant growth, driven by increasing consumer concerns about privacy, misuse, and bias in artificial intelligence applications. As businesses integrate AI to enhance efficiency and reduce costs, the demand for ethical and transparent AI governance becomes paramount. This demand is further fueled by the accelerated digitization trends post-pandemic, which have heightened the need for robust AI governance frameworks. The market is characterized by a strong focus on accountability, oversight, and responsibility, with AI and machine learning emerging as pivotal technologies reshaping various industries. The retail sector, in particular, is undergoing a transformation as it embraces AI to improve performance and navigate the challenges posed by digital natives and direct-to-consumer brands. Effective AI management is crucial for retailers to streamline data access, enhance decision-making, and maintain a competitive edge.

North America, a frontrunner in adopting AI technologies, is expected to have a substantial impact on the AI governance market. The region's established economy and presence of major IT firms facilitate investments in new technologies, making it a hub for innovation in AI governance. The United States, in particular, is focusing on developing frameworks to incorporate ethical considerations in AI research and development, addressing concerns related to large tech companies and technologies like facial recognition. The competitive landscape is intense, with major players such as IBM Corporation, Google LLC, SAP SE, Microsoft Corporation, and FICO Inc. actively enhancing their AI governance capabilities through strategic acquisitions and partnerships. These developments underscore the market's dynamic nature and the ongoing efforts to leverage AI for business transformation while ensuring ethical standards are upheld.

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AI Governance Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Assessment of Impact of COVID-19 on the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Component

      1. 2.1.1 Solution

      2. 2.1.2 Service

    2. 2.2 By Deployment

      1. 2.2.1 On-Premise

      2. 2.2.2 Cloud

    3. 2.3 By End-user Vertical

      1. 2.3.1 Healthcare

      2. 2.3.2 Government and Defense

      3. 2.3.3 Automotive

      4. 2.3.4 Retail

      5. 2.3.5 BFSI

      6. 2.3.6 Other End-user Verticals

    4. 2.4 By Geography***

      1. 2.4.1 North America

        1. 2.4.1.1 United States

        2. 2.4.1.2 Canada

      2. 2.4.2 Europe

        1. 2.4.2.1 United Kingdom

        2. 2.4.2.2 Germany

        3. 2.4.2.3 France

      3. 2.4.3 Asia

        1. 2.4.3.1 China

        2. 2.4.3.2 India

        3. 2.4.3.3 Japan

      4. 2.4.4 Australia and New Zealand

      5. 2.4.5 Latin America

      6. 2.4.6 Middle East and Africa

AI Governance Market Size FAQs

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.

In 2024, the AI Governance Market size is expected to reach USD 264.18 million.

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