AI Governance Market

AI Governance Market Outlook (2024 to 2033)

The global artificial intelligence (AI) governance market was valued at US$ 217 Mn in 2024 and is projected to bloat to a valuation of US$ 4.7 Bn by the end of 2033, expanding rapidly at a CAGR of 40.5% between 2024 and 2033.

Artificial intelligence governance refers to the industry dedicated to the development and implementation of policies, regulations, and best practices for the responsible use of AI technology. This market aims to address the ethical, legal, and social implications of AI and ensure that AI systems are aligned with human values and principles.

• In January 2024, DXC Technology and Microsoft teamed up to drive digital transformation. This collaboration will also be supported by artificial intelligence and machine learning, which will guarantee the greatest standards of cyber security for numerous enterprises.
• In July 2022, TIBCO announced momentous improvements to Tibco Cloud Integration. Increasing the potential for integration of applications, data, and devices across hybrid environments will enable customers to accelerate business outcomes in an unstable business world.

AI governance includes services and solutions such as AI ethics and compliance consulting, AI risk management software, and AI bias detection and correction tools. The market is growing as the adoption of AI technology increases and the need for responsible and ethical AI practices becomes more important.

• Revenue from AI governance currently accounts for 9.1% share of the global enterprise governance market.
• North America held 37.1% share of the market in 2022 and is forecasted to retain its position over the forecast period.
• Demand for AI governance in Western Europe accounted for 18.4% of the global market in 2024.

What are the Hindrances to the Adoption of AI Governance Market?

“Lack of Uniformity in Guidelines and Regulations Limiting Adoption of AI Governance”

Lack of standardization in the AI governance market refers to the absence of widely accepted and uniform guidelines, policies, and regulations for the development and deployment of AI systems. This can create challenges for organizations and businesses in implementing AI solutions, as they may need to navigate a patchwork of inconsistent rules and standards. Lack of standardization can also make it difficult for organizations to compare and assess the performance and efficacy of different AI systems and solutions, leading to inefficiencies and increased costs.

• A new AI governance solution was launched by IBM in October 2022, providing a one-stop platform on the IBM cloud for managing organizational data in conjunction with data science platforms.
• In May 2022, Siemens AG implemented integrated AI data center management (DMS) software at the most energy-efficient data centers in the Baltic region.

Country-wise Insights

What Makes the United States a Lucrative Market for Providers of AI Governance Solutions?

“Increasing U.S. Government’s Focus on Ethical Frameworks for AI Governance”

As AI technology continues to account for widespread use in the United States, there is a growing demand for AI governance. Both private sector organizations and the United States government are exploring different approaches to AI governance, such as ethical guidelines, technical standards, and legal frameworks.

The goal of AI governance is to ensure that AI systems are developed, used, and regulated in a way that maximizes their benefits while minimizing negative consequences. There is still much work to be done to establish a comprehensive and effective AI governance framework in the United States.

What are the Opportunities for Providers of AI Governance Solutions in Germany?

“Increased Government Support for AI Governance Implementation”

Government support is a factor that is allowing AI governance to grow in Germany. The German government has established initiatives to regulate and oversee the implementation of AI and has actively promoted its development.

This support has helped create a favorable environment for the growth of AI governance in the country. Germany is home to many major players in the AI market, which is one of the significant factors contributing to the growth of the market in the country.

Demand for AI governance in Germany is anticipated to rise at a substantial CAGR of 48.8% through 2033.

How is the Demand for AI Governance Shaping Up in India?

“Large Pool of Skilled IT Professionals and Data Scientists Contributing to Efficient AI Governance Implementation”

The presence of a strong IT industry in India can boost the development and adoption of AI governance. The IT industry provides a large pool of skilled engineers and data scientists who can develop and implement AI solutions. The IT industry also has a strong track record of innovation and collaboration, which can drive the development and growth of the AI sector.

IT professionals’ experience in areas such as software development, data management, and cyber security can help to ensure that AI solutions are developed and used in a responsible and ethical manner.

Demand for AI governance market solutions in India is anticipated to expand at a CAGR of 44.8% through 2033.

Category-wise Insights

Why Does the Finance Sector Account for High Demand for AI Governance Solutions?

“Increasing Need for Efficient Data Privacy Protocols in Finance Sector”

Growth of the AI governance market is expected to be driven by the availability of data in the finance sector. This is due to the vast amounts of data generated by the industry, coupled with advancements in AI technology, which can offer valuable insights and enhance decision-making processes.

The use of AI in the finance sector is subject to regulatory compliance, data privacy, and security considerations, making the need for effective governance of AI systems increasingly important. The adoption of AI governance in the finance sector is predicted to boom at a CAGR of 39.6% over the forecast period.

How are Software Tools Supporting Effective AI Governance?

“Rising Need to Minimize Risk of Non-compliant AI Practices”

The increasing use of software tools is enabling organizations to establish and maintain effective AI governance. These tools provide a centralized platform for managing and monitoring AI systems, including defining ethical and compliance policies, monitoring performance and data usage, and automating auditing and reporting processes.

By automating these processes, organizations can reduce the risk of unethical or non-compliant AI practices, increase transparency, and demonstrate accountability. This, in turn, helps build trust in AI and helps organizations effectively govern the use of AI.

The AI governance market platforms segment is anticipated to account for 62.7% share of the global market by 2033.

Competitive Landscape

Companies, including major players, are focused on enhancing technology in the AI sector to facilitate seamless operations and upgrading AI data centers to provide greater accessibility to users.

• In January 2023, NTT Data and Aurora Labs announced their global strategic cooperation to make logistics more accessible and flexible through over-the-air software upgrades, which will improve efficiency and end-to-end security, including the 5G layer. This partnership is a result of the integration of AI technology and 5G, which is beneficial for various industries.
• In April 2020, SAP improved its already-existing functionalities with new automated features based on AI technologies, such as incident solution matching service and automatic translation, to make the backup process smoother.

Recent developments related to key players providing artificial intelligence governance solutions have been tracked by analysts at Persistence Market Research, which will be accessible in the full report.

AI Governance Industry Report Scope

Key Segments of AI Governance Industry Research

By Component:

• AI Governance Platforms
  • Cloud-based/Web-based
  • On-Premise
• AI Governance Services
  • Compliance Services
  • AI Ethics Consulting
  • Data Governance Services
  • Auditing & Testing Services
  • Others

By Enterprise Size:

• Small Offices (1 to 9 Employees)
• Small Enterprises (10 to 99 Employees)
• Medium-sized Enterprises (100 to 499 Employees)
• Large Enterprises (500 to 999 Employees)
• Very Large Enterprises (1,000+ Employees)

By Industry:

• Finance
  • Banking
  • Insurance
  • Investment/Securities
• Manufacturing & Resources
  • Discrete Manufacturing
  • Process Manufacturing
  • Resource Industries
  • Agriculture
• Distribution Services
  • Wholesale
  • Transportation/Logistics
  • Warehousing & Storage
  • Shipping
• Services
  • IT/Professional Services
  • Consumer & Personal Services
  • Media, Entertainment, & Publishing
  • Travel & Hospitality
  • Legal Services
• Public Sector
  • Government (State/Central)
  • Education
  • Healthcare
  • Aerospace & Defense
  • Non-Profit
• Infrastructure
  • Telecommunication
  • Energy & Utilities
  • Building & Construction

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia Pacific
• Middle East and Africa

To know more about delivery timeline for this report Contact Sales