The global AI governance market was valued at USD 0.16 billion in 2022 and it is predicted to surpass around USD 3.38 billion by 2032 with a CAGR of 35.65% from 2023 to 2032. The AI governance market in the United States was accounted for USD 26.1 million in 2022.
Key Pointers
Report Scope of the AI Governance Market
Report Coverage | Details |
Revenue Share of North America in 2022 | 32% |
Revenue Forecast by 2032 | USD 3.38 billion |
Growth Rate from 2023 to 2032 | CAGR of 35.65% |
Base Year | 2022 |
Forecast Period | 2023 to 2032 |
Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
Companies Covered | ABB, DXC Technology Company, Infosys, Microsoft, NTT Data, Oracle, SAP SE, Siemens, Tata Communication Services (TCS), TIBCO |
The market for artificial intelligence (AI) governance is expanding due to several factors, including rising regulatory and legal requirements, industry-specific considerations, the emergence of AI governance consulting services, and rising demand for explainable AI. These factors also include rising awareness of AI’s potential risks and challenges. As its usage spreads across sectors, there is rising awareness of the possible hazards and difficulties connected with AI, such as algorithmic bias, privacy problems, and safety risks. To ensure the appropriate and ethical development and use of AI, businesses, and governments are spending more and more on AI governance.
There is a rising need for AI governance solutions to handle AI systems' ethical, legal, and societal ramifications as it becomes more common in many industries. As a result, platforms, and tools for AI governance have increased, including explainable AI (XAI) solutions, tools for bias detection and reduction, and frameworks for AI ethics. Several organizations are integrating AI governance into their business risk management frameworks to address the potential risks and liabilities of AI systems. It entails identifying and evaluating the risks associated with AI, putting controls and governance mechanisms in place, monitoring risk levels associated with AI, and reporting those risks.
The application of AI to reduce gender inequality and discrimination opens attractive potential in the global AI governance Market. The growing number of government attempts to utilize AI technology, modernize data warehouse architecture and bridge the ethical-accountability gap are the few significant factors propelling the growth of the global AI governance market. The proactive customer experience provided by AI-assisted backend process automation, which eliminates human errors, propels AI growth in the BFSI industry. Using chatbots and robot advisers for financial products and smart wallets is one of the additional factors impacting the industry's growth.
Component Insights
The solution segment dominated the market in 2022 with a market share of 66%. Owing to the existence of well-diversified market competitors, the solution sector is also expected to dominate the segment market throughout the projection period. To meet the increasing customer demand across several end-user industry verticals, such suppliers are concentrating on offering fresh, creative solutions continuously in step with technological advancement. For instance, in October 2021, Datatron announced an improvement to their MLOps and Al governance solution, which makes it simple for businesses to catalog, operationalize, monitor, and control Al/ML models.
Owing to the rising demand for Al governance solutions, which has increased demand for software integration services, installation services, deployment, maintenance, and upgrade services, the service segment also have considerable growth soon. The complexity of implementing Al governance systems and software and the demand for integrating them into customers' IT infrastructures will fuel the expansion of integration services. Businesses are developing new AI governance training and education programs to assist individuals and organizations in understanding AI's ethical and legal consequences. For instance, in 2021, Intel unveiled its educational program in collaboration with the Central Board of Secondary Education (CBSE) for the basic understanding of Artificial intelligence (AI) for Citizens, which offers free online courses on AI ethics and ethical AI development.
Deployment Type Insights
The on-premises segment dominated the market in 2022 with a market share of 54%. Data governance, explainable AI, edge computing, integration with DevOps workflows, scalability, and flexibility are some of the main trends in the on-premises AI governance market that are driving the industry's growth. These developments show the rising significance of AI governance and the requirement for businesses to manage the governance of their AI systems in a scalable, adaptable, and open way. Additionally, the need for a traditional on-premises environment that offers a single monolithic network with suitable security measures is projected to soon lead to considerable development in the on-premises category. Although the use of cloud solutions has grown over time, effective security measures are still required to safeguard user data and applications.
There are numerous benefits of employing, the cloud is predicted to drive the global market during the forecast period. Implementation of Al governance in the cloud and accurate asset allocation are some of the significant advantages of cloud-based services. With the help of this, users may remotely audit and check on the adherence to current policies and IT standards outlined in contracts for services with Cloud service providers. Cloud service providers rapidly include AI governance tools into their platforms to fulfill the rising need for moral and responsible AI. For instance, In December 2021, Microsoft announced the introduction of responsible AI capabilities in its Azure cloud platform, which include tools for bias detection and model interpretability.
Organization Size Insights
The large enterprise segment dominated 2022 with a market share of 72%. Businesses are focusing more on data privacy and security as they want to ensure that their AI systems protect sensitive information. Furthermore, as large organizations become more susceptible to cyberattacks and other security issues, integrating AI governance to reduce risk is projected to rise, promoting market growth in this sector. Consulting companies have teamed with AI governance solution vendors to deliver complete AI governance services to their clients. Large enterprises have been acquiring smaller AI governance startups to expand their capabilities in this area. For Instance, in July 2020, IBM acquired WDG Automation, a firm specializing in AI governance and compliance. With this acquisition, IBM's extensive AI-infused automation capabilities, which span business processes and IT operations, are further advanced.
The market for AI governance in small- and medium-sized businesses (SMEs) is anticipated to develop quickly throughout the anticipated period. Some reasons in the SME market that drive the category's growth include the rising desire for scalable, inexpensive solutions that may assist SMEs in ensuring responsible, ethical, and transparent usage of artificial intelligence. SMEs might also require additional resources to create and maintain their AI governance frameworks. Cloud-based solutions from AGaaS providers let SMEs apply best practices in AI governance without making significant infrastructure expenditures.
Vertical Insights
The Government and Defense segment dominated the market in 2022 with a share of approximately 20%. Several trends in assuring the appropriate, ethical, and transparent use of AI in different areas, including healthcare & life sciences, are propelling market expansion. AI use in healthcare and life sciences presents privacy and data security issues since these sectors deal with sensitive patient data. Therefore, there is an increasing focus on ensuring that AI systems in these industries abide by data privacy laws and are protected from potential cyber threats. Healthcare professionals also employ AI to help with diagnosis and therapy. However, applying AI in these situations raises questions about bias and accuracy, so it's crucial to ensure the systems are properly validated and trained before being applied in clinical settings.
Autonomous cars are one of the domains where AI governance solutions are expected to be necessary. The fact that several projects are working on creating self-driving cars is a crucial factor propelling the growth of this market. Like the emergence of AI-enabled hardware, specialized GPUs have significantly increased the potential to enable and improve self-driving technologies and AI algorithms. Additionally, crucial AI characteristics, including enhanced processing and decision-making capabilities, have strengthened self-control, self-regulation, and self-actuation, which have expanded the usage of AI in the defense, military, and government sectors. Some advantages of AI techniques include their development to increase the accuracy of target recognition in complex conflict circumstances.
Regional Insights
The North American region accounted for the highest share of the market at 32% in 2022. North America is expected to capture a significant share due to the increased use of artificial intelligence (Al) by commercial and governmental organizations is responsible is one of the main factors propelling the market growth. In the last several years, American legislators and government organizations have been creating Al and automated systems plans and regulations to balance limiting the negative effects of Al technology and promoting healthy competition and advances. Additionally, early adoption of technologies like machine learning by developed countries like the U.S. and Canadian businesses is anticipated to fuel market expansion in the North American area.
Europe is another critical market for AI regulation, with a heavy emphasis on data privacy and ethical AI. The General Data Protection Regulation (GDPR) and the AI Act, which aim to address data privacy, prejudice and discrimination, and algorithmic transparency, are some recent rules of the EU that have been adopted or proposed. Additionally, there has been an increased emphasis on creating frameworks and norms for AI ethics, with groups like the European Alliance and the high-level expert group on AI leading the charge. Moreover, Several European nations have created AI governance ethical frameworks. For instance, the UK government has released an AI Code of Conduct that outlines a few principles for the moral use of AI, such as justice, accountability, and openness.
AI Governance Market Segmentations:
By Component
By Deployment Type
By Organization Size
By Vertical
By Regional
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on AI Governance Market
5.1. COVID-19 Landscape: AI Governance Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global AI Governance Market, By Component
8.1. AI Governance Market, by Component, 2023-2032
8.1.1. Solution
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Services
8.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global AI Governance Market, By Deployment
9.1. AI Governance Market, by Deployment, 2023-2032
9.1.1. On-Premises
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Cloud
9.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global AI Governance Market, By Organization Size
10.1. AI Governance Market, by Organization Size, 2023-2032
10.1.1. Large Enterprise
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. SMEs
10.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global AI Governance Market, By Vertical
11.1. AI Governance Market, by Vertical, 2023-2032
11.1.1. BFSI
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. Government and Defense
11.1.2.1. Market Revenue and Forecast (2020-2032)
11.1.3. Healthcare and life sciences
11.1.3.1. Market Revenue and Forecast (2020-2032)
11.1.4. Media and Entertainment
11.1.4.1. Market Revenue and Forecast (2020-2032)
11.1.5. Retail
11.1.5.1. Market Revenue and Forecast (2020-2032)
11.1.6. IT and Telecommunication
11.1.6.1. Market Revenue and Forecast (2020-2032)
11.1.7. Automotive
11.1.7.1. Market Revenue and Forecast (2020-2032)
11.1.8. Others (Education, Travel and Tourism, Manufacturing and Etc)
11.1.8.1. Market Revenue and Forecast (2020-2032)
Chapter 12. Global AI Governance Market, Regional Estimates and Trend Forecast
12.1. North America
12.1.1. Market Revenue and Forecast, by Component (2020-2032)
12.1.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.1.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.1.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.1.5. U.S.
12.1.5.1. Market Revenue and Forecast, by Component (2020-2032)
12.1.5.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.1.5.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.1.5.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.1.6. Rest of North America
12.1.6.1. Market Revenue and Forecast, by Component (2020-2032)
12.1.6.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.1.6.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.1.6.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.2. Europe
12.2.1. Market Revenue and Forecast, by Component (2020-2032)
12.2.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.2.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.2.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.2.5. UK
12.2.5.1. Market Revenue and Forecast, by Component (2020-2032)
12.2.5.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.2.5.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.2.5.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.2.6. Germany
12.2.6.1. Market Revenue and Forecast, by Component (2020-2032)
12.2.6.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.2.6.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.2.6.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.2.7. France
12.2.7.1. Market Revenue and Forecast, by Component (2020-2032)
12.2.7.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.2.7.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.2.7.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.2.8. Rest of Europe
12.2.8.1. Market Revenue and Forecast, by Component (2020-2032)
12.2.8.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.2.8.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.2.8.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.3. APAC
12.3.1. Market Revenue and Forecast, by Component (2020-2032)
12.3.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.3.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.3.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.3.5. India
12.3.5.1. Market Revenue and Forecast, by Component (2020-2032)
12.3.5.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.3.5.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.3.5.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.3.6. China
12.3.6.1. Market Revenue and Forecast, by Component (2020-2032)
12.3.6.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.3.6.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.3.6.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.3.7. Japan
12.3.7.1. Market Revenue and Forecast, by Component (2020-2032)
12.3.7.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.3.7.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.3.7.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.3.8. Rest of APAC
12.3.8.1. Market Revenue and Forecast, by Component (2020-2032)
12.3.8.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.3.8.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.3.8.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.4. MEA
12.4.1. Market Revenue and Forecast, by Component (2020-2032)
12.4.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.4.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.4.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.4.5. GCC
12.4.5.1. Market Revenue and Forecast, by Component (2020-2032)
12.4.5.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.4.5.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.4.5.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.4.6. North Africa
12.4.6.1. Market Revenue and Forecast, by Component (2020-2032)
12.4.6.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.4.6.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.4.6.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.4.7. South Africa
12.4.7.1. Market Revenue and Forecast, by Component (2020-2032)
12.4.7.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.4.7.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.4.7.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.4.8. Rest of MEA
12.4.8.1. Market Revenue and Forecast, by Component (2020-2032)
12.4.8.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.4.8.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.4.8.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.5. Latin America
12.5.1. Market Revenue and Forecast, by Component (2020-2032)
12.5.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.5.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.5.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.5.5. Brazil
12.5.5.1. Market Revenue and Forecast, by Component (2020-2032)
12.5.5.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.5.5.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.5.5.4. Market Revenue and Forecast, by Vertical (2020-2032)
12.5.6. Rest of LATAM
12.5.6.1. Market Revenue and Forecast, by Component (2020-2032)
12.5.6.2. Market Revenue and Forecast, by Deployment (2020-2032)
12.5.6.3. Market Revenue and Forecast, by Organization Size (2020-2032)
12.5.6.4. Market Revenue and Forecast, by Vertical (2020-2032)
Chapter 13. Company Profiles
13.1. ABB
13.1.1. Company Overview
13.1.2. Product Offerings
13.1.3. Financial Performance
13.1.4. Recent Initiatives
13.2. DXC Technology Company
13.2.1. Company Overview
13.2.2. Product Offerings
13.2.3. Financial Performance
13.2.4. Recent Initiatives
13.3. Infosys
13.3.1. Company Overview
13.3.2. Product Offerings
13.3.3. Financial Performance
13.3.4. Recent Initiatives
13.4. Microsoft
13.4.1. Company Overview
13.4.2. Product Offerings
13.4.3. Financial Performance
13.4.4. Recent Initiatives
13.5. NTT Data
13.5.1. Company Overview
13.5.2. Product Offerings
13.5.3. Financial Performance
13.5.4. Recent Initiatives
13.6. Oracle
13.6.1. Company Overview
13.6.2. Product Offerings
13.6.3. Financial Performance
13.6.4. Recent Initiatives
13.7. SAP SE
13.7.1. Company Overview
13.7.2. Product Offerings
13.7.3. Financial Performance
13.7.4. Recent Initiatives
13.8. Siemens
13.8.1. Company Overview
13.8.2. Product Offerings
13.8.3. Financial Performance
13.8.4. Recent Initiatives
13.9. Tata Communication Services (TCS)
13.9.1. Company Overview
13.9.2. Product Offerings
13.9.3. Financial Performance
13.9.4. Recent Initiatives
13.10. TIBCO
13.10.1. Company Overview
13.10.2. Product Offerings
13.10.3. Financial Performance
13.10.4. Recent Initiatives
Chapter 14. Research Methodology
14.1. Primary Research
14.2. Secondary Research
14.3. Assumptions
Chapter 15. Appendix
15.1. About Us
15.2. Glossary of Terms