April 14, 2024
AI Governance Market

AI Governance Is Estimated To Witness High Growth Owing To Rising Risk Of Negative Impact From Unregulated AI Deployment

The AI governance market encompasses technologies, frameworks, and solutions that help organizations develop, deploy and manage AI models responsibly and for the benefit of humanity. It aims to ensure AI systems behave ethically and respect human values, rights and preferences. The need for AI governance is increasing with growing capabilities of AI which if left unsupervised can negatively impact individuals, organizations and society. AI governance provides guidance on AI safety best practices, conducts risk assessments of AI use cases, and monitors AI systems to prevent unintended harms.

The Global AI Governance Market is estimated to be valued at US$ 222.77 Billion in 2024 and is expected to exhibit a CAGR of 8.1%  over the forecast period from 2024 to 2030.

Key Takeaways

Key players: Key players operating in the AI governance market are Groupe Emsland, Roquette FreÌ€res, The Scoular Company, COSUCRA – Groupe Warcoing, Ingredion Incorporated, Axiom Foods Inc., Yantai Shuangta Food Co. Ltd, Vestkorn Milling AS, Puris, Meelunie BV, AGT Food and Ingredients Inc., and Shandong Jianyuan Bioengineering Co. Ltd.

Key opportunities: Increasing focus on AI safety and responsible innovation by both private and public sectors is opening up opportunities for AI governance solution providers. Growing awareness about risks of bias and unfairness in AI decision making is prompting organizations to adopt governance approaches. Adoption of industry-specific AI ethics standards and guidelines will further drive market demand.

Global expansion: Major AI governance players are focusing on partnerships, collaborations and acquisitions to expand globally and cater to the rapidly growing need for governance across industries and geographies. They are also investing in customized solutions and tools for domain-specific governance needs to gain wider market access. Gradually enforcement of regulations on AI use is also driving the global expansion of this market.

Market drivers: The key driver for the AI Governance Market Demand is the rising risk of negative impact from unregulated and unsupervised deployment of AI systems. Many use cases have demonstrated potential for unintended consequences, bias, privacy issues, lack of transparency, unfair decision making and other harms if governance best practices are not followed. This is compelling organizations as well as regulators to focus on adopting governance frameworks and mechanisms.

PEST Analysis

Political: AI governance policies and regulations are evolving. Several countries have started to frame guidelines for ethical and responsible use of AI. This will impact how companies develop and deploy AI systems.

Economic: Investments in AI technologies continue to rise globally as companies realize its potential for productivity gains and cost reduction. However, lack of AI governance can negatively impact consumer trust and business outcomes.

Social: Interaction of AI with humans introduces new social challenges around transparency, bias, privacy and security. Lack of clear norms around these issues can reduce user adoption of AI-powered products and services.

Technological: Advancements in machine learning, computer vision, natural language processing and other technologies are making AI more pervasive. However, without proper oversight and governance, rapid technological changes may outpace the ability to handle its societal impacts.

The North American region accounts for the largest share of the AI governance market in terms of value currently, owing to high technology adoption and presence of major tech companies in the US and Canada. The region is also proactively framing ethical AI guidelines and regulations to ensure trustworthy development and use of AI.

The Asia Pacific region is expected to grow the fastest in the AI governance market during the forecast period. This is due to increasing digital transformation initiatives by companies and governments in major economies like China, India and Japan. There is also rising awareness about the need for AI safety and accountability as more AI applications are deployed across industries in the region.

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