AI governance technologies, such as model monitoring, access management, and interpretability, are becoming essential tools for organizations wanting to mitigate risks and ensure responsible development of AI systems. As enterprises continue to adopt AI technologies across business functions, the need for tools that provide transparency, oversight and control over AI workflows is growing. The global AI governance market offers a comprehensive set of solutions to help businesses address challenges relating to managing and monitoring AI systems throughout their development and operational life cycles.
The global AI governance market size was valued at USD 131.9 million in 2024 and is anticipated to witness a compound annual growth rate (CAGR) of 46.60% from 2024 to 2030
AI governance helps organizations address regulatory compliance needs, while also building trust with customers and employees through accountable and transparent use of AI. By enforcing policies that promote fairness, reliability and privacy of AI models, companies can responsibly scale their AI initiatives.
Key Takeaways
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. The growing adoption of AI technologies across industries is fueling demand for tools that help audit models, validate results and guard against biases or unintended consequences. Several leading tech companies are also expanding their AI governance product portfolios globally to serve a diversifying customer base with international compliance needs.
Market key trends
One of the major trends in the AI governance market is the rise of model monitoring solutions. These tools help track key metrics of AI models, detect data and algorithmic drifts over time, and facilitate the re-training of models as needed, contributing to the growth of the AI governance market size adopting model monitoring governance platforms to gain real-time visibility into how their AI systems are behaving once deployed. This ensures models continue performing as intended and helps address issues proactively before they impact end users.
Porter’s Analysis
Threat of new entrants: High risk of losing investment in R &D.
Bargaining power of buyers: Moderate bargaining power as buyers have limited options for AI governance.
Bargaining power of suppliers: Limited bargaining power due to the presence of many established companies offering AI governance solutions is one of the AI governance market challenges and opportunities to consider.
Threat of new substitutes: Low threat as there are limited substitutes available for AI governance.
Competitive rivalry: Intense competition due to presence of many large established players offering similar AI governance solutions.
Geographical regions:
North America accounted for the largest share in AI governance market in terms of value in 2024 due to increased adoption across industries such as healthcare, BFSI and government. The region is expected to remain the highest revenue generator during the forecast period as well on account of stringent regulations regarding data privacy and use of AI and increasing investments in AI technology by leading companies in the region.
Asia Pacific is expected to witness the fastest growth during the forecast period owing to growing penetration of AI and increasing demand for AI governance solutions in countries such as China, India and Japan due to rapid digital transformation across industries in these countries. Increasing investments by global players and government initiatives to promote adoption of AI are some of the factors expected to fuel the growth of AI governance market in Asia Pacific region.
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Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
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