Artificial Intelligence (AI) Governance Is the Largest Segment Driving the Growth of the AI Governance Market
The global AI Governance Market is estimated to be valued at US$ 131.9 million in 2023 and is expected to exhibit a CAGR of 46.60% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
AI governance refers to the oversight and monitoring of AI systems to ensure their safe, ethical and aligned behavior and minimize risks. It addresses issues related to safety, transparency, fairness and accountability.
Market key trends:
The increasing demand for organizations to improve accountability and transparency of AI systems is a major trend driving the AI governance market growth. With AI being incorporated across different business functions, organizations are focusing on how to ensure employees and customers understand an AI system's capabilities and limitations, and that the decisions made by AI can be properly explained and critiqued. Implementing robust governance frameworks is key to building trust in AI systems and technologies.
Market Key Trends:
One of the key trends in the AI Governance Market Size is the increasing focus of organizations on ensuring ethical and responsible development and application of AI technologies. With AI getting integrated into various critical business functions and public services, there is a growing need among enterprises to establish robust governance mechanisms to align AI/ML systems with organizational values and priorities like ethics, fairness, privacy, transparency etc. This trend is driving many players in this market to develop advanced tools and solutions that help measure and monitor how AI systems affect people and society.
SWOT Analysis:
Strength: AI Governance solutions help improve transparency, accountability, and oversight of AI systems. This helps build trust among customers, employees, and regulators.
Weakness: Lack of agreed upon standards makes it challenging to determine what constitutes ethical and responsible use of AI. Managing biases in complex AI/ML models is also difficult.
Opportunity: Growing regulatory push for AI accountability and transparency presents an opportunity for governance vendors. Demand will rise as more industries adopt advanced AI technologies.
Threats: Absence of global regulations creates compliance challenges. Limited expertise in interdisciplinary fields like ethics, policy and technical platforms can also hamper effective governance.
Key Takeaways:
The global AI Governance market is expected to witness high growth, exhibiting CAGR of 46.60% over the forecast period, due to increasing regulatory pressures on enterprises to ensure their AI systems are safe, accountable and cause no unintended harm.
Regional analysis: North America dominated the global market in 2021 with over 35% share owing to high adoption of AI technologies across industries and stringent government regulations regarding AI governance in the region. Asia Pacific is anticipated to grow at the fastest pace during the forecast period, owing to the rising AI deployments in major Asian countries like, China, Japan, and India.
Key players operating in the AI Governance market are 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.
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