AI governance market size to grow by USD 520,771.88 thousand from 2023 to 2027, Adoption of enterprise AI by SMEs is the primary trend in the market, Technavio

NEW YORK, Feb. 29, 2024 /PRNewswire/ -- The global AI governance market size is estimated to grow by USD 52,0771.88 thousand from 2022 to 2027, according to Technavio. The market is estimated to grow at a CAGR of  34.64%. The growth momentum will progress during the forecast period. The adoption of enterprise AI by SMEs is the primary trend in the artificial intelligence governance market. Owing to the rising complexity and opacity of AI systems, there is an increasing need for equipment to test and understand the decision-making processes of AI algorithms. One of the main purposes of algorithmic accountability is to hold AI systems accountable for their activities, especially when those actions have an impact on humans or society. Such developments will improve transparency, reduce bias, and offset any potential negative effects of AI algorithms. Thus, these factors are expected to fuel the growth of the AI governance market during the forecast period. For more insights on the historic period (2017 to 2021) and forecast market size (2023 to 2027). Request a sample report

Segment Overview

Technavio has segmented the AI Governance Market by end-user (government and defense, healthcare ABD life sciences, BFSI, retail, and others), component (solution and services), and geography (North America, Europe, APAC, Middle East and Africa, and South America).

• The government and defense segment is estimated to witness significant growth during the forecast period. One of the major end-users of the AI governance market is the government and defense segments, as governments around the world understand the importance of having effective AI governance frameworks in place to ensure responsible and ethical application of these technologies. Furthermore, the application of AI governance techniques in defense is highly dependent on parameters such as data security, algorithmic transparency, and compliance with ethical regulations. Thus, these applications are expected to drive the growth of this segment which in turn will drive the growth of the AI governance market during the forecast period.

Geographical Analysis

North America held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 30%. One of the key factors driving the rapid growth of the AI governance market in North America is the significant presence of government organizations, technology companies, and research institutes, who play a crucial role and are actively involved in setting AI governance rules and practices. In addition, there is research and innovation in AI governance driven by collaborations between academic institutions and industrial companies. Hence, such factors are expected to boost the AI governance market growth in this region during the forecast period. Download a Sample Report

Increasing adoption of AI technologies across industries

Factors such as the growing use of AI technologies in industries such as aerospace and defense, healthcare, and BFSI are significantly driving the growth of the AI governance market. Some of the holistic AI governance techniques adopted in organizations include AI ethical frameworks and algorithmic audits.  Therefore, these factors are notably driving the growth of the AI governance market during the forecast period.

• The lack of universally accepted standards and frameworks for AI governance is one of the major challenges to the growth of the market. Insights on Market Drivers, trends, & Challenges, historic period(2017 to 2021) and forecast period(2023 to 2027)- Request a sample report!

Aanlyst Review

In today's rapidly evolving digital realm, the intersection of AI and IoT applications has brought forth a multitude of ethical implications and risks, necessitating the rise of ethical hacking and penetration testing to identify vulnerabilities in organizations' systems. Ethical hackers and penetration testers play pivotal roles in safeguarding cybersecurity by conducting vulnerability assessments and proposing solutions to mitigate malicious attacks.

Companies are increasingly recognizing the importance of ethical behavior and accountability in the digital landscape, especially as cybersecurity events continue to pose threats to data security and privacy concerns. However, the shortage of individuals skilled in cybersecurity, exacerbated by the pandemic-induced lockdowns, has highlighted the need for investments in on-premises solutions and the cultivation of a pool of trained personnel.

Moreover, with the surge in online activities such as remote learning, telehealth, and digital well-being initiatives, responsible digital citizenship has become paramount in addressing the digital literacy gap and mitigating digital divide issues. Cloud computing has further transformed the landscape, prompting the emergence of AI ethics consulting firms and service providers to offer AI governance solutions that prioritize transparency, fairness, and privacy protection.

These AI governance solutions encompass various aspects, including bias detection and mitigation, model governance, and responsible AI practices, aiming to address legal and societal challenges while fostering trust in digital technologies. AI ethics consultants play a crucial role in navigating the complex terrain of AI governance, offering insights into the AI governance market analysis and leveraging software tools and platforms to implement effective governance frameworks.

As organizations grapple with the ethical implications of AI and IoT technologies, the demand for AI governance solutions continues to grow, driving the expansion of the AI governance market. However, ensuring ethical AI and IoT solutions requires concerted efforts to address bias detection and mitigation, privacy protection, and model governance, ultimately promoting responsible digital citizenship and advancing the principles of transparency, fairness, and accountability in the digital era. 

The Artificial Intelligence (AI) Governance Market assesses ethical hacking and penetration testing strategies to identify vulnerabilities and mitigate risks. Various organizations invest in robust governance frameworks to ensure responsible AI deployment and compliance. Request a sample report!

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Table Of Contents 

1 Executive Summary
2 Landscape
3 Sizing
4 Historic Size
5 Five Forces Analysis
6 Segmentations
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

About US
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio