AI Governance Market Share, Size, Latest Trends and Forecast 2024-2032

IMARC Group, a leading market research company, has recently released a report titled “AI Governance Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2024-2032,” The study provides a detailed analysis of the industry, including the global AI governance market trends, share, size, and growth forecast. The report also includes competitor and regional analysis and highlights the latest advancements in the market.

Report Highlights:

How Big is the AI Governance Market?

The global AI governance market size reached US$ 186.8 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 3,444.5 Million by 2032, exhibiting a growth rate (CAGR) of 38.24% during 2024-2032.

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Factors Affecting the Growth of the AI Governance Industry:

• Regulatory Compliance:

The increasing focus on regulatory compliance, as governments worldwide are enacting laws and regulations to manage the proliferation and integration of artificial intelligence (AI) technologies in various sectors, is driving the market growth. This regulatory landscape is rapidly evolving to address the unique challenges posed by AI, including ethical considerations, data usage, and transparency. Furthermore, governments are imposing strict guidelines on data privacy, which include stipulations for automated decision-making and profiling that directly impact AI deployments. Additionally, they are proposing various guidelines and bills aimed at regulating facial recognition technology, autonomous vehicles, and other AI-driven technologies. Moreover, organizations are increasingly seeking AI governance solutions to ensure they meet these regulatory requirements, avoid hefty penalties, and maintain their reputational standing.

• Ethical AI Usage:

Ethical AI usage is another critical factor driving the growth of the AI governance market. AI systems are being integrated into more aspects of daily life and business operations, prompting the need for governance frameworks to ensure these systems operate fairly and without bias. Additionally, these frameworks are designed to prevent biases in machine learning (ML) models, which can lead to discrimination or unfair treatment in various applications, such as hiring, law enforcement, and lending practices. This not only helps in building trust among users but also shields organizations from public backlash and potential legal challenges related to discriminatory practices. Moreover, increasing public and regulatory scrutiny, pushing companies to adopt comprehensive governance strategies that address these ethical concerns proactively, is supporting the market growth.

• Risk Management:

Risk management encompasses a broad range of concerns, from operational and technological risks to reputational and strategic risks. AI systems are becoming more complex and autonomous, leading to the heightened risk of unforeseen malfunctions or security vulnerabilities. These risks can have significant operational impacts, such as downtime, loss of data, or incorrect decision-making processes, which in turn can lead to financial losses and damage to the organization's reputation. Furthermore, as AI is being deployed in critical infrastructure, the potential for catastrophic failures becomes a major concern. In this regard, AI governance frameworks help organizations identify, evaluate, and mitigate these risks through continuous monitoring, testing, and refinement of AI systems. This includes the development of robust contingency plans that can be activated in the event of an AI system failure.

AI Governance Market Report Segmentation:

Market Breakup by Component:

• Solution
• Services

Solutions hold the largest market share as they provide essential tools and platforms that organizations require to implement effective AI governance frameworks.

Market Breakup by Deployment Mode:

• On-premises
• Cloud-based

On-premises accounted for the largest market share due to its enhanced control over security and data management, crucial for organizations with stringent compliance and data privacy requirements.

Market Breakup by Enterprise Size:

• Large Enterprises
• Small and Medium-sized Enterprises (SMEs)

Large enterprises represented the largest segment due to their greater resources and higher stakes in managing extensive AI implementations responsibly and effectively.

Market Breakup by Industry Vertical:

• BFSI
• Government and Defense
• Healthcare and Life Sciences
• Media and Entertainment
• Retail
• IT and Telecom
• Automotive
• Others

BFSI holds the majority of the market share due to its early adoption of AI technologies coupled with high regulatory scrutiny that necessitates robust governance.

Breakup By Region:

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

North America's dominance in the market is attributed to its advanced technological infrastructure, stringent regulatory environment, and significant investments in AI research and development.

Global AI Governance Market Trends:

The rising importance of data privacy is facilitating the demand for AI governance frameworks that are essential in managing how AI systems handle and process sensitive data, ensuring adherence to data protection laws. Furthermore, rapid advancements in AI capabilities, which necessitate robust governance structures to manage and deploy AI effectively and safely, are fueling the market growth. Additionally, the escalating demand to implement strong AI governance to build public trust in AI applications is acting as another growth-inducing factor. Besides this, the widespread integration of AI technologies into existing systems, which is prompting the need for governance frameworks to ensure these integrations are performed smoothly and securely, is favoring the market growth.

Some of these key players include:

• Atos SE
• Dataiku
• FICO Inc.
• Google LLC (Alphabet Inc.)
• H2O.ai Inc.
• Informatica Inc.
• International Business Machines Corporation
• NTT DATA Corporation (Nippon Telegraph and Telephone Corporation)
• SAP SE
• SAS Institute Inc.

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