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Ai Governance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The AI Governance Market is Segmented by Component (Solution and Service), Deployment (On-Premise and Cloud), End-User Vertical (Healthcare, Government and Defense, Automotive, Retail, BFSI, and Other End-User Verticals), and Geography (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

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AI Governance Market Size

AI Governance Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 264.18 Million
Market Size (2029) USD 936.44 Million
CAGR (2024 - 2029) 28.80 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

AI Governance Market Major Players

*Disclaimer: Major Players sorted in no particular order

AI Governance Market Analysis

The AI Governance Market size is estimated at USD 264.18 million in 2024, and is expected to reach USD 936.44 million by 2029, growing at a CAGR of 28.80% during the forecast period (2024-2029).

  • Increasing consumer concerns over privacy, abuse, and bias are propelling the demand for artificial intelligence (AI) governance. Ensuring the delivery of ethical and transparent AI stands as a primary objective of AI governance, aiming to establish accountability, oversight, and responsibility.
  • Businesses are increasingly leveraging AI in their operations to boost efficiency and cut costs through automation.
  • Furthermore, the heightened consumer focus on privacy, misuse, and bias drives the push for ethical and transparent AI, emphasizing the need for accountability and oversight.
  • Artificial intelligence and machine learning stand out as pivotal technologies reshaping the world. In today's challenging economic landscape, where governments globally grapple with tight budgets and limited public funding, AI's ability to optimize resources and tackle complex issues is paramount.
  • AI developers, engineers, researchers, and data scientists are the most sought-after talents in this landscape. Enterprises must pinpoint skill gaps and prioritize areas for enhancement.
  • The accelerated digitization due to the pandemic has spiked the demand for AI services, fueling the AI governance market. According to Salesforce, the need for AI and skilled AI professionals increased post-pandemic.

AI Governance Market Trends

The Retail Sector is Expected to Witness Significant Growth

  • The global retail sector is undergoing a significant transformation as customers, especially digital natives, alter their channel preferences and purchasing behaviors. With this digital shift, the focus on data, crucial for digital transformation, has intensified.
  • Effective AI management is now a cornerstone for retailers looking to enhance their performance, tackle common hurdles, and outpace both traditional retail rivals and agile direct-to-consumer brands. Governance, streamlining data access, is pivotal for swift decision-making.
  • Retailers are embracing cutting-edge technologies, notably artificial intelligence (AI) and machine learning. However, as they integrate these technologies, they must do so alongside robust ethics frameworks. Crafting a code of conduct not only fosters good data management practices but also guides the broader spectrum of company activities.
  • Some retailers have excelled in three critical areas on their AI journey: swiftly transforming and replacing existing systems, adhering to data security regulations, and finding the delicate balance between strategic priorities and available resources. These successes underscore their readiness for increased AI adoption.
  • Retailers are also gearing up their workforce for the global deployment of end-to-end AI solutions. This strategic move not only enhances their operational efficiency but also opens up significant market opportunities. For instance, a major retailer recently launched an extensive training program to upskill its 40,000 employees for the AI revolution.
AI Governance Market: Forecasted Size of Retail Market, in USD Billion, India, 2018-2026

North America Holds Largest Market Share

  • North America, one of the first countries to adopt artificial intelligence technologies, is expected to have an enormous impact on this market. For example, in order to help organizations across the country incorporate ethical considerations into research and development without compromising public involvement and better marketing of an organization, the US National Artificial Intelligence Research and Development Plan recommended the development of a framework for the implementation of AI research and development.
  • In order to remain competitive in the market, North American organizations, especially those based in the United States, make use of all the benefits of AI, ML, and Deep Learning technology. The country's economy is well established, making it easier for AI and governance vendors to make investments in new technologies. Moreover, the fact that some of the most important IT firms are introducing intelligent devices and working together with others in the area of AI governance is considered to be a hub for innovation.
  • The potential of AI regulation in the United States has been given considerable attention recently due to concerns regarding large tech, as well as impacts on technologies such as facial recognition. The US strategy for artificial intelligence has been an important topic for academics, policymakers, and industry.
  • Many Canadian organizations are already using machine-learning tech to automate key operations, generate critical insights, upgrade customer interactions, and inform strategic decisions.
AI Governance Market : Market CAGR (%), By Region, Global

AI Governance Industry Overview

The intensity of competitive rivalry in the market is expected to remain high during the forecast period. Major players include IBM Corporation, Google LLC (Alphabet Inc.), SAP SE, Microsoft Corporation, and FICO Inc. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

AI Governance Market Leaders

  1. Microsoft Corporation

  2. IBM Corporation

  3. SAP SE

  4. Google LLC (Alphabet Inc.)

  5. FICO Inc.

*Disclaimer: Major Players sorted in no particular order

AI Governance Market Concentration
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AI Governance Market News

  • September 2024: Meta has entered into a two-year collaboration with the Government of Telangana's Department of Information Technology, Electronics and Communications (ITE&C). This partnership aims to equip public officials and citizens with advanced technologies, including AI, to bolster e-governance and improve citizen services.
  • March 2024: SAP and Collibra have strengthened their partnership to meet AI governance demands. SAP Datasphere and Collibra provide a business data fabric architecture that governs SAP and non-SAP data, ensuring trusted data access for all users. The surge in AI innovation underscores the importance of reliable data.

AI Governance Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitute Products

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Growing Demand for Transparency in AI Decision Making

      2. 5.1.2 Expanding Government Initiatives to Leverage the AI Technology

    2. 5.2 Market Restraints

      1. 5.2.1 Inadequate AI Expertise and Skills can Act as a Restraint

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Component

      1. 6.1.1 Solution

      2. 6.1.2 Service

    2. 6.2 By Deployment

      1. 6.2.1 On-Premise

      2. 6.2.2 Cloud

    3. 6.3 By End-user Vertical

      1. 6.3.1 Healthcare

      2. 6.3.2 Government and Defense

      3. 6.3.3 Automotive

      4. 6.3.4 Retail

      5. 6.3.5 BFSI

      6. 6.3.6 Other End-user Verticals

    4. 6.4 By Geography***

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 United Kingdom

        2. 6.4.2.2 Germany

        3. 6.4.2.3 France

      3. 6.4.3 Asia

        1. 6.4.3.1 China

        2. 6.4.3.2 India

        3. 6.4.3.3 Japan

      4. 6.4.4 Australia and New Zealand

      5. 6.4.5 Latin America

      6. 6.4.6 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 IBM Corporation

      2. 7.1.2 Google LLC (Alphabet Inc.)

      3. 7.1.3 SAP SE

      4. 7.1.4 Microsoft Corporation

      5. 7.1.5 FICO Inc.

      6. 7.1.6 Salesforce.com Inc.

      7. 7.1.7 Pymetrics Inc.

      8. 7.1.8 SAS Institute Inc.

      9. 7.1.9 H2O.ai Inc.

      10. 7.1.10 Integrate.ai Inc.

      11. 7.1.11 Facebook Inc. (Meta Platforms Inc.)

    2. *List Not Exhaustive

  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

**Subject to Availability
***In the final report, Asia, Australia, and New Zealand will be studied together as 'Asia Pacific' and Latin America and Middle East and Africa will be considered together as 'Rest of the World'. Rest or Europe and Rest of Asia Pacific are also included in the final study.
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AI Governance Industry Segmentation

AI governance is the concept that promotes the establishment of legal frameworks for facilitating the ethical deployment of machine learning (ML) and other AI-based technologies.

The AI governance market is segmented by component (solution and service), deployment (cloud and on-premise), end-user vertical (healthcare, government and defense, automotive, retail, BFSI, and other end-user verticals), and geography (North America (United States and Canada), Europe (United Kingdom, Germany, France, and the Rest of Europe), Asia-Pacific (China, India, Japan, and the Rest of Asia-Pacific), and the Rest of the World. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Component
Solution
Service
By Deployment
On-Premise
Cloud
By End-user Vertical
Healthcare
Government and Defense
Automotive
Retail
BFSI
Other End-user Verticals
By Geography***
North America
United States
Canada
Europe
United Kingdom
Germany
France
Asia
China
India
Japan
Australia and New Zealand
Latin America
Middle East and Africa
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AI Governance Market Research Faqs

The AI Governance Market size is expected to reach USD 264.18 million in 2024 and grow at a CAGR of 28.80% to reach USD 936.44 million by 2029.

In 2024, the AI Governance Market size is expected to reach USD 264.18 million.

Microsoft Corporation, IBM Corporation, SAP SE, Google LLC (Alphabet Inc.) and FICO Inc. are the major companies operating in the AI Governance Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in AI Governance Market.

In 2023, the AI Governance Market size was estimated at USD 188.10 million. The report covers the AI Governance Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the AI Governance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

AI Governance Industry Report

Statistics for the 2024 AI Governance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. AI Governance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Artificial Intelligence Governance Market Report Snapshots

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Ai Governance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)