AI Governance Market Forecasts to 2030 – Global Analysis By Component (Solution, Services and Other Components), Deployment Mode, Organization Size, Application, End User and By Geography

AI Governance Market Forecasts to 2030 – Global Analysis By Component (Solution, Services and Other Components), Deployment Mode, Organization Size, Application, End User and By Geography

According to Stratistics MRC, the Global AI Governance Market is accounted for $264.1 million in 2024 and is expected to reach $1322.5 million by 2030 growing at a CAGR of 30.8% during the forecast period. AI Governance involves the frameworks, policies, and guidelines that ensure the ethical development and deployment of artificial intelligence. It addresses issues like transparency, accountability, fairness, and privacy. Effective AI governance includes regulatory oversight, industry standards, and organizational practices to mitigate risks and promote responsible AI usage. It also encompasses stakeholder engagement, interdisciplinary collaboration, and continuous monitoring to adapt to evolving technologies. The goal is to balance innovation with societal values, ensuring AI benefits all while minimizing potential harms.

According to the Capgemini Research Institute research, the companies that are perceived to be ethically using AI and ML have a 44-point Net Promoter Score (NPS) advantage over those that are not.

Market Dynamics:

Driver:

Ethical and regulatory imperatives

Ethical and regulatory imperatives significantly influence the AI Governance market, shaping policies and frameworks to ensure responsible AI development and deployment. Regulations such as GDPR in Europe and AI guidelines in various countries aim to safeguard privacy, mitigate bias, and uphold accountability in AI systems. Ethical considerations drive transparency, fairness, and societal impact assessments in AI implementations. Compliance with these imperatives necessitates AI governance structures that promote ethical standards, regulatory adherence, and stakeholder trust driving the growth of the market.

Restraint:

Lack of standardized AI governance frameworks

Creating inconsistencies in regulatory compliance and ethical standards across jurisdictions, without uniform guidelines, organizations face complexities in navigating legal requirements and implementing cohesive governance practices. This fragmentation hampers interoperability between AI systems and impedes international collaboration on AI development and deployment. Moreover, it complicates efforts to address ethical concerns such as bias and transparency, undermining trust in AI technologies hampering the growth of the market.

Opportunity:

Transparency in AI decision-making

Clear and understandable explanations of how AI algorithms make decisions enable stakeholders to assess fairness, identify biases, and ensure ethical use. This transparency drives demand for governance solutions that provide mechanisms for auditing, explaining, and interpreting AI outputs. Organizations investing in transparent AI governance frameworks not only comply with regulatory requirements but also mitigate risks associated with algorithmic opacity encouraging the market growth.

Threat:

Data privacy concerns

Regulations like GDPR impose stringent requirements on data handling, impacting AI development and deployment strategies. Compliance complexities, such as ensuring consent and data anonymization, increase operational costs and limit data availability for training AI models. Moreover, breaches in data privacy erode public trust and invite regulatory scrutiny, hindering AI innovation.

Covid-19 Impact

The Covid-19 pandemic accelerated the AI Governance market as organizations rapidly adopted AI technologies to navigate disruptions and enable remote operations. Heightened reliance on AI for healthcare, logistics, and customer service underscored the need for ethical guidelines and regulatory frameworks to address data privacy, bias, and algorithmic transparency. Governments and enterprises prioritized AI governance to ensure responsible AI use amidst crisis-driven deployments. However, economic uncertainties and resource constraints in some sectors slowed regulatory developments and investments.

The services segment is expected to be the largest during the forecast period

The services is expected to be the largest during the forecast period as consultancy services offer strategic guidance on regulatory compliance, risk assessment, and ethical considerations in AI development and deployment. Auditing and certification services ensure adherence to standards and best practices, bolstering trust and transparency. Training and education services equip stakeholders with skills in AI ethics, governance, and responsible use. Service providers also offer technical solutions for monitoring, interpreting, and mitigating biases in AI systems.

The model transparency segment is expected to have the highest CAGR during the forecast period

The model transparency segment is expected to have the highest CAGR during the forecast period as transparent AI models provide clear explanations of how decisions are made, enabling stakeholders to understand, interpret, and validate outcomes. This transparency mitigates concerns about biases, discrimination, and ethical implications in AI applications. It drives demand for governance solutions that ensure comprehensible and auditable AI models, fostering regulatory compliance and ethical standards.

Region with largest share:

North America is projected to hold the largest market share during the forecast period owing to presence of a substantial industrial base in the U.S., government initiatives to promote innovation, and large purchasing power aiding the growth of the AI governance market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to escalating demand for intelligent virtual assistants and the expanding 5G infrastructure.

Region with highest CAGR:

Asia Pacific is projected to hold the highest CAGR over the forecast period owing to several countries in the region, including China, Japan, and Singapore, actively working on establishing regulatory frameworks and guidelines to govern AI's ethical and responsible use. For instance, The Chinese government released guidelines and policies to regulate AI technologies, promote data security, and encourage collaboration which is driving the growth of the market in this region.

Key players in the market

Some of the key players in AI Governance market include IBM Corporation, Google LLC, SAP SE, Microsoft Corporation, FICO Inc., Salesforce.com, Inc., Pymetrics Inc., SAS Institute Inc., H2O.ai, Inc., Integrate.ai Inc., Facebook, Inc., Informatica LLC, OneTrust, LLC, Accenture, Salesforce.com, Inc., Credo AI, TIBCO Software Inc., Amazon Web Services, Inc. and QlikTech International AB

Key Developments:

In June 2024, L3Harris and Accenture Collaborate to Accelerate Technology Reinvention for Growth. As part of this collaboration, a portion of L3Harris’ IT professionals will join Accenture, where they will benefit from industry-specific training, new technology and operational skills development.

In April 2024, IBM to Acquire HashiCorp, Inc. Creating a Comprehensive End-to-End Hybrid Cloud Platform, HashiCorp's suite of products provides enterprises with extensive Infrastructure Lifecycle Management and Security Lifecycle Management capabilities to enable organizations to automate their hybrid and multi-cloud environments.

In January 2024, IBM to Acquire Application Modernization Capabilities from Advanced. The planned acquisition will further enable us to support clients’ mainframe application modernization journeys, marking another important step forward in IBM’s hybrid cloud and AI strategy.

Components Covered:
• Solution
• Services
• Other Components

Deployment Modes Covered:
• On-Premises
• Cloud-Based

Organization Sizes Covered:
• Small and Medium-Sized Enterprises (SMEs)
• Large Enterprises

Applications Covered:
• Model Transparency
• Bias & Fairness Detection
• Accountability & Auditability
• Data Privacy & Protection
• Regulatory Compliance
• Ethical AI Policies
• Risk Management
• AI Governance Frameworks
• Incident Management
• Performance Monitoring & Reporting
• Other Applications

End Users Covered:
• Financial Institutions
• Healthcare Providers
• Retail
• Manufacturing
• Automotive
• Government Agencies
• Energy & Utilities
• Telecommunications
• Transportation & Logistics
• Media & Entertainment
• Biotechnology
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements