AI Governance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

AI Governance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The AI Governance Market size is estimated at USD 264.18 million in 2024, and is expected to reach USD 936.44 million by 2029, growing at a CAGR of 28.80% during the forecast period (2024-2029).

Key Highlights

• Increasing consumer concerns over privacy, abuse, and bias are propelling the demand for artificial intelligence (AI) governance. Ensuring the delivery of ethical and transparent AI stands as a primary objective of AI governance, aiming to establish accountability, oversight, and responsibility.
• Businesses are increasingly leveraging AI in their operations to boost efficiency and cut costs through automation.
• Furthermore, the heightened consumer focus on privacy, misuse, and bias drives the push for ethical and transparent AI, emphasizing the need for accountability and oversight.
• Artificial intelligence and machine learning stand out as pivotal technologies reshaping the world. In today's challenging economic landscape, where governments globally grapple with tight budgets and limited public funding, AI's ability to optimize resources and tackle complex issues is paramount.
• AI developers, engineers, researchers, and data scientists are the most sought-after talents in this landscape. Enterprises must pinpoint skill gaps and prioritize areas for enhancement.
• The accelerated digitization due to the pandemic has spiked the demand for AI services, fueling the AI governance market. According to Salesforce, the need for AI and skilled AI professionals increased post-pandemic.

AI Governance Market Trends

The Retail Sector is Expected to Witness Significant Growth

• The global retail sector is undergoing a significant transformation as customers, especially digital natives, alter their channel preferences and purchasing behaviors. With this digital shift, the focus on data, crucial for digital transformation, has intensified.
• Effective AI management is now a cornerstone for retailers looking to enhance their performance, tackle common hurdles, and outpace both traditional retail rivals and agile direct-to-consumer brands. Governance, streamlining data access, is pivotal for swift decision-making.
• Retailers are embracing cutting-edge technologies, notably artificial intelligence (AI) and machine learning. However, as they integrate these technologies, they must do so alongside robust ethics frameworks. Crafting a code of conduct not only fosters good data management practices but also guides the broader spectrum of company activities.
• Some retailers have excelled in three critical areas on their AI journey: swiftly transforming and replacing existing systems, adhering to data security regulations, and finding the delicate balance between strategic priorities and available resources. These successes underscore their readiness for increased AI adoption.
• Retailers are also gearing up their workforce for the global deployment of end-to-end AI solutions. This strategic move not only enhances their operational efficiency but also opens up significant market opportunities. For instance, a major retailer recently launched an extensive training program to upskill its 40,000 employees for the AI revolution.

North America Holds Largest Market Share

• North America, one of the first countries to adopt artificial intelligence technologies, is expected to have an enormous impact on this market. For example, in order to help organizations across the country incorporate ethical considerations into research and development without compromising public involvement and better marketing of an organization, the US National Artificial Intelligence Research and Development Plan recommended the development of a framework for the implementation of AI research and development.
• In order to remain competitive in the market, North American organizations, especially those based in the United States, make use of all the benefits of AI, ML, and Deep Learning technology. The country's economy is well established, making it easier for AI and governance vendors to make investments in new technologies. Moreover, the fact that some of the most important IT firms are introducing intelligent devices and working together with others in the area of AI governance is considered to be a hub for innovation.
• The potential of AI regulation in the United States has been given considerable attention recently due to concerns regarding large tech, as well as impacts on technologies such as facial recognition. The US strategy for artificial intelligence has been an important topic for academics, policymakers, and industry.
• Many Canadian organizations are already using machine-learning tech to automate key operations, generate critical insights, upgrade customer interactions, and inform strategic decisions.

AI Governance Industry Overview

The intensity of competitive rivalry in the market is expected to remain high during the forecast period. Major players include IBM Corporation, Google LLC (Alphabet Inc.), SAP SE, Microsoft Corporation, and FICO Inc.

• October 2023: IBM Corporation acquired Manta Software Inc., with Manta’s data lineage capabilities helping increase transparency within Watsonx. This will allow businesses to determine whether the right data was used for their AI models and systems, where it originated, how it has evolved, and any discrepancies in data flows and help deliver products that are built on principles of trust and transparency.
• August 2023: SAP SE and Google Cloud announced a partnership in order to improve the enterprises harness the power of data and generative AI, where the companies will combine their integrated open data cloud using SAP Datasphere with Vertex AI to launch new generative AI-powered industry solutions starting with automotive and introduce new capabilities to help customers improve sustainability performance.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support