AI governance helps ensure the safe, fair, and accountable development and application of artificial intelligence. It provides oversight for developing and utilizing AI technologies in a responsible manner. AI governance frameworks aim to address issues regarding privacy, transparency, safety, accuracy, bias, and security. They help align AI models and applications with ethical, social and legal norms. The increasing adoption of AI across industries such as healthcare, transportation, manufacturing, and customer service has led to growing need for oversight and control over AI technologies. Various frameworks promoted by organizations provide guidance on developing and using AI in a way that respects human values, autonomy, and privacy.
The global AI Governance Market is estimated to be valued at US$ 193.37 Mn in 2023 and is expected to exhibit a CAGR of 46.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the AI governance market is the increasing focus on model risk management. As AI models become larger and more complex, ensuring the decisions made by these models are safe, fair, and accountable is crucial. Model risk management practices assess potential risks of AI algorithms and help align their outcomes with organizational values. Several AI governance solution providers are developing tools and capabilities around model monitoring, interpretation, and mitigation of potential harms caused by AI models over their lifecycle. This allows organizations to gain visibility into how their models function and take corrective actions when needed.
Threat of new entrants: The threat of new entrants is low in the AI governance market due to high capital requirements for R&D and need for brand recognition. Bargaining power of buyers: The bargaining power of buyers is moderate as AI technologies are becoming commodity and buyers have various options available. Bargaining power of suppliers: The bargaining power of suppliers is also moderate as there are many technology players supplying AI governance solutions. Threat of new substitutes: The threat of new substitutes is high as newer technologies such as machine learning are emerging as substitutes. Competitive rivalry: Competition in the AI governance market is high among technology giants as well as emerging startups.
The Global AI Governance Market Size is expected to witness high growth over the forecast period. The North America region currently dominates the market due to high technology adoption. The Asia Pacific region is expected to grow at the fastest rate during the forecast period due to increasing investments from technology companies in countries such as China and India.
Key players operating in the AI governance market include Facebook, Inc. (Meta Platforms Inc), IBM Corporation, Integrate.ai Inc., Google LLC (Alphabet Inc.), H2O.ai, Inc., SAP SE, SAS Institute Inc., Microsoft Corporation, Pymetrics Inc., FICO Inc., and Salesforce.com, Inc. Key players are focusing on developing advanced AI governance solutions to ensure systems are trained ethically and outputs are explainable. For instance, IBM launched its Responsible AI toolkit in 2020 to assess impacts of AI systems and help developers address any issues of unfairness or bias.