AI Governance Market- Global Industry Analysis and Forecast (2023-2029)

AI Governance Market was valued at US$ 0.12 Bn. in 2022. Global AI Governance Market size is expected to grow at a CAGR of 53.63 % through the forecast period.
AI Governance Market Overview:
AI (artificial intelligence) technology is a carbon copy of human intelligence processes by machines, especially computer systems, and this AI governance acts as an interface between humans and machines. AI is a versatile technology with the ability to transform industrial and organizational processes.

AI Governance can be used in a variety of industries to develop both online and offline capabilities, including real-time offer management, automated checkout systems, and enhanced behavioral analytics. The demand for AI governance from data science applications has also increased significantly in recent years due to its application to data governance, process optimization, training, and more.

AI Governance is used to monitor and evaluate algorithms for risk, effectiveness, bias, and high return on investment. A special application of AI is an expert system, commonly included in AI governance.To know about the Research Methodology :- Request Free Sample Report
AI Governance Market Dynamics:
AI Governance Market Drivers:

The main drivers of the AI governance market are the growing need to build trust in AI systems and the growing demand for transparency in AI decisions around the world. AI governance providers are focusing on advancing AI, cloud solutions, and services by adding machine learning algorithms and deep learning frameworks.

These key factors are driving the growth of the AI governance market. Continued development and implementation of AI governance solutions to find effective ways to achieve business goals create growth opportunities in the AI governance market.

Increasing government initiative to leverage the benefits of AI technology, narrow the gap between ethics and accountability, and modernize data warehousing structures is some of the key applications that will contribute to the growth of the AI governance market.

AI Governance Market Challenges:

AI era is used to convert conventional commercial enterprise strategies and redefine them to decorate the organization`s productiveness and income margins. However, the organization lacks the AI talents and expertise that may assist them in layout algorithms to manipulate the AI gadget.

This is because of the complexity of neural networks and ML algorithms inside the AI gadget and the un-established regulatory surroundings for AI governance. To construct essential ML models, it's miles higher for an organization to have its professional workforce. However, it's miles very tough for an organization to lease or educate AI-professional employees.

Currently, there are 22,000 AI-educated specialists with-inside the world. Organizations around the sector are challenged through retention and improved attrition price of professional employees. Hence, insufficient AI information and talents pose a primary undertaking amongst groups, which may lessen with-inside the close to future.

AI Governance Market Opportunities:

AI technology has changed the present era with ML and cognitive thinking capabilities. It has had a positive impact on society through various use cases. However, there are some negative cases where AI provides biased and discriminatory output.

AI technology is currently in development, learning from different types of data patterns and providing negative or positive output. AI governance solutions allow developers to develop and monitor ML algorithms and train with relevant data to avoid unwanted results.

Deploying AI governance solutions is the only option for AI solution providers to prevent unexplained AI reputation, finance, and data loss. In addition, ethical AI can help prevent gender gaps and discrimination issues caused by black-box AI in a variety of areas, including recruitment processes and facial recognition.
AI Governance Market Segment Analysis:
Based on Component, the AI Governance Market is segmented into Solution and Service. The solution segment had the largest market share in 2022. The solution segment is expected to grow fast during the forecast period, partly due to increased user reliance and the need for AI-based systems.

AI Governance Solutions are platforms and software tools that provide end-to-end AI governance solutions to AI developers, data scientists, business users, and IT architects in a variety of industries. This help to collaborates, build, and operate AI solutions, enabling enterprises to integrate a variety of AI and related features into their applications. Another segment is the service segment.



Based on the Vertical, the AI Governance Market is segmented into Automotive, Government and Defence, Healthcare and Life Sciences, Media and Entertainment, Retail, Telecom and Others.

Automobiles have the largest market share, followed by government and national defense. Autonomous transportation is one of the areas where AI governance solutions are expected to play an important role. The autonomous transportation Market is expected to grow at a CAGR of 31.2% through the forecast period.

The presence of many self-driving car development initiatives is also a major driver of this market. The self-driving market was valued at US$ 22.97 Bn in 2022 and it will reach US$ 54.73 Bn by 2029. The Self-driving market is expected to grow at a CAGR of 13.2%through the forecast period.

Similarly, the adoption of AI-enabled hardware is rapidly advancing the enablement and enhancement of autonomous driving technologies and AI algorithms via dedicated AI-enabled GPUs. In addition, key AI characteristics such as improved self-control, self-regulation, and self-activation enhance computational and decision-making capabilities, facilitating the application of AI in the defense, military, and government sectors
AI Governance Market Regional Insights:
North America region dominated the market with 43% share in 2022. The North American region is one of the early adopters of AI technology and is therefore it is expected to grow fast through the forecast period. The IT service market of North America is valued at US$ 493.64 Bn in 2022 and it will reach US$ 818.97 Bn by 2029. The IT service market is expected to grow at a CAGR of 7.5%through the forecast period.

The government has announced the adoption of ethical AI principles in line with the goals of the Ministry of Defence’s AI strategy, facilitating the ethical and legal use of AI systems by the US military and related industries. Organizations in North America, especially the United States, are at the forefront of the market with AI, ML, and deep learning technologies.

The country has an established economy that allows AI and governance providers to invest in new technologies. In addition, major IT players are seen as innovation hubs that launch smart devices and collaborate with other companies in the AI governance market.

Recent concerns about the impact of technologies such as Big Tech and facial recognition have put a great deal of focus on the outlook for artificial intelligence regulation in the United States. For organisational use, about 33% US organizations has implemented AI for their use. 63% of US organizations saw the positive impact of implementing the AI in the organisation.

East Asia and South Asia Pacific are increasingly adopting AI-powered services in the region. Hence Double-digit revenue growth is expected in the AI governance market. The AI Governance Market Report summarizes direct information, qualitative and quantitative assessments by market analysts, and contributions from market experts and participants from across the value chain. AI Market of the Asia Pacific region is expected to grow at a CAGR of 36.5% through the forecast period.

Due to the various developments in the Europe region due to AI governance, Europe is expected to grow most rapidly during the forecast period. Adoption of AI-powered services in the region is expected to slow due to rising ethical issues in AI technology, creating a legal framework to ensure that the ML algorithm works for the benefit of humanity. The need will increase.



The objective of the report is to present a comprehensive analysis of the global AI Governance Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the AI Governance Market dynamic, structure by analyzing the market segments and projecting the AI Governance Market size. Clear representation of competitive analysis of key players by Product type, price, financial position, product portfolio, growth strategies, and regional presence in the AI Governance Market make the report investor’s guide.
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AI Governance  Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US$ 0.12 Bn.


Forecast Period 2023 to 2029 CAGR:
53.63%
Market Size in 2029:
US$ 2.48 Bn.


 Segments Covered:
by Component
• Solution
• Service


by Vertical
• Automotive
• Government and Defense
• Healthcare and Life Sciences
• Media and Entertainment
• Retail
• Telecom
• Other


by Deployment Mode
• Cloud
• On Premise


by Enterprise Size
• Small and Medium Scale Enterprise
• Large Scale Enterprises


by Function
• Document Management
• Performance and Outcomes management
• Application Tracking
• Collaboration
• Grant Discovery


by Platform Type
• Well based
• Mobile based



AI Governance Market, by Region
● North America (United States, Canada and Mexico)
● Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
● Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
● Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
● South America (Brazil, Argentina, Columbia and Rest of South America)
AI Governance Market, Key Players are:
• IBM
• AWS
• SAP
• Google
• Facebook
• Microsoft
• Salesforce.com
• SAP
• FICO
• 2021.AI
• ZestFinance
• SAS Institute
• Pymetrics
• H2O.AI
• integrate.ai
• Alphabet Inc
• Amazon Web Services, Inc.
• QlikTech International AB TIBCO Software Inc.

Frequently Asked Questions:

1] What segments are covered in the Global AI Governance Market report?
Ans. The segments covered in the AI Governance Market report are based on Component, Vertical, Deployment Mode, Enterprise Size, Function, Platform Type and Region.

2] Which region is expected to hold the highest share in the Global AI Governance Market?
Ans. The North America region is expected to hold the highest share in the AI Governance Market.

3] What is the market size of the Global AI Governance Market by 2029?
Ans. The market size of the AI Governance Market by 2029 is expected to reach US$ 2.48 Bn.

4] What is the forecast period for the Global AI Governance Market?
Ans. The forecast period for the AI Governance Market is 2023-2029.

5] What was the market size of the Global AI Governance Market in 2022?
Ans. The market size of the AI Governance Market in 2022 was valued at US$ 0.12 Bn.