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A06249 | Pages: 469 | Charts: 76 | Tables: 157 |
The global AI governance market size was valued at USD 80.8 million in 2021, and is projected to reach USD 2.7 billion by 2031, growing at a CAGR of 42.1% from 2022 to 2031.
Surge in governmental efforts to use the Al technology and quick and easy access to historical dataset and convenience of data storage primarily drive the growth of the AI governance industry. However, the foundation of thorough ethical standards for Al and inadequate expertise in Al are expected to hamper the AI governance market growth. Moreover, AI can significantly reduce discrimination based on gender and a higher level of adherence to technological regulation is expected to provide lucrative opportunities for AI governance market forecast.
Artificial intelligence (AI) is currently a technology with practical applications in contemporary life. AI technology can have a positive impact on economies and society when it is adopted and used properly. The expanding use of AI across a variety of industries, including healthcare, transportation, education, and others, has raised worries about public safety and security, driving the need for AI governance. The idea behind AI governance is that a legal framework should exist to guarantee that Machine Learning (ML) technologies are thoroughly investigated and methodically developed to help humanity accept AI technology fairly. Algorithm effectiveness, ROI (return on investment) risk, and bias are evaluated and monitored as part of AI (Artificial Intelligence) governance. The main objective of AI governance is to close the gap between ethical responsibility and technological advancement.
The global AI governance market is segmented on the basis of component, deployment mode, enterprise size, industry vertical, and region. On the basis of component, it is segregated into solutions and services. On the basis of deployment mode, it is segregated into cloud and on-premises. On the basis of enterprise size, it is segregated into large enterprises and small and medium-sized enterprises (SMEs). On the basis of industry vertical, it is segregated into BFSI, retail, healthcare, government and defense, media and entertainment, automotive and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the AI governance industry include Amazon Web Services, Inc., QlikTech International AB, TIBCO Software Inc., Meta, SAP SE, International Business Machines Corporation, SAS Institute Inc., Salesforce, Inc., Microsoft Corporation and Alphabet Inc. Furthermore, it highlights the strategies of the key players to improve the AI governance market share and sustain competition.
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Depending on component, the solution segment dominated the AI governance market share in 2021 and is expected to continue this trend during the forecast period, owing to enormous increase in deployment of AI governance solutions among different industries, which is supplementing the growth of the AI governance market. However, the services segment is anticipated to experience the highest growth, owing to increase in adoption of these services to help analysts identify useful insights, and aid natural language processing to automatically extract pertinent data from intelligence sources and establish links.
[REGIONGRAPH]
Region-wise, the AI governance market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to presence of a substantial industrial base in the U.S., government initiatives to promote innovation, and large purchasing power aiding the growth of the AI governance market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to escalating demand for intelligent virtual assistants and the expanding 5G infrastructure. Furthermore, several major AI governance solution providers including Amazon Web Services, Inc., TIBCO Software Inc., Meta, SAP SE, International Business Machines Corporation, SAS Institute Inc., Salesforce, Inc., Microsoft Corporation and Alphabet Inc., are introducing new products & services to AI governance.
Due to the expanding benefits of Al, businesses and governments worldwide are launching programs to adopt Al and ML technologies and establish themselves as industry leaders. To implement Al governance solutions, government organizations from many different nations are creating councils, creating new rules and guidelines, and creating frameworks. The main goals of governments implementing Al governance solutions are to safeguard civil liberties and personal information and to increase public confidence in Al technology. As a result, numerous businesses have established committees in cooperation with suppliers of Al solutions, academic institutions, and research facilities to identify risk issues for Al technology.
For instance, in March 2021, the U.S.-India Artificial Intelligence Initiative was launched by the Indo-U.S. Science and Technology Forum (IUSSTF) with the goal of fostering AI innovation through the exchange of knowledge and experiences, the discovery of fresh opportunities for bilateral cooperation, and the advancement of AI research.
AI researchers and engineers need better data to enable better AI governance. The quality of an AI solution is determined by both the learning algorithm (such as a deep-neural network AI model) and the datasets used to train and evaluate that algorithm. Historically, AI research has focused much more on algorithms and datasets, due to their vital importance. AI governance is used by various industries to develop both online and offline capabilities to store their data and for real-time offer management, automated checkout systems, and improved behavior analytics. The demand for AI governance from data storage applications has also grown significantly over the last few years, owing to its easy access of dataset. For instance, in December 2021, Google, contributed to data-centric AI governance. Google Cloud is adding a new high value dataset to the Public Dataset Program, and Google researchers announced DataPerf, a multi-organizational effort to develop regulations for data quality and data centric algorithms. Such factors have propelled the AI governance market growth.
In North America, especially in the U.S., there is a growing focus on establishing federal regulations for AI governance. The U.S. government is working towards creating a national AI strategy that balances innovation with concerns around privacy, bias, and accountability. While the regulatory landscape is still evolving, the country’s approach leans toward fostering innovation with a light regulatory touch. Tech companies like Google and Microsoft have already implemented internal governance policies, emphasizing responsible AI usage and addressing public concerns over bias and misuse of AI systems.
Europe is a frontrunner in AI governance, spearheaded by the European Union’s proposed AI Act. The EU is setting global standards by regulating AI systems based on risk categories, and enforcing stricter regulations for high-risk AI applications like healthcare, recruitment, and law enforcement. Additionally, Europe's General Data Protection Regulation (GDPR) influences AI governance by emphasizing data privacy and ethical AI usage. Countries like Germany and France are pushing for AI transparency and fairness to build responsible use of AI technologies.
In Asia-Pacific, China and Japan are leading AI governance efforts. China focuses on ensuring government oversight of AI to manage its societal impacts, including monitoring AI for social control. Japan, on the other hand, prioritizes innovation while promoting ethical AI usage. Japan's government is actively involved in developing AI guidelines to ensure fairness, accountability, and safety in AI applications.
The idea behind AI governance is that a legal framework should exist to guarantee that Machine Learning (ML) technologies are thoroughly investigated and methodically developed to help humanity accept AI technology fairly. Algorithm effectiveness, ROI risk, and bias are evaluated and monitored as part of AI (Artificial Intelligence) governance. The main objective of AI governance is to close the gap between ethical responsibility and technological advancement. For instance, 8 out of 10 Americans, according to a study report from The Centre for the Governance of AI from June 2019, think AI and robots should be properly overseen.
However, according to Accenture Research, 82% of federal executives believe AI will collaborate with people as a trusted advisor and coworker over the next two years. The workforce will require high trust that AI governance might attain and fill the gaps to increase their faith in automated systems for regular life-changing decisions. Businesses and governments all over the world are taking a variety of actions to adopt AI and machine learning technology and establish themselves as AI governance market leaders because of the AI's expanding benefits. Government agencies worldwide are now creating councils, new standards and laws, and AI governance solutions. However, there are no suitable ethical guidelines because AI technology is still in its early stages and is undergoing constant AI development. The standardized application of laws and policies could be challenging to accomplish.
Key Market Segments
Key Market Players