AI Governance Market to grow by USD 520.771 million from 2022 to 2027 | The increasing adoption of AI technologies drives market growth - Technavio

NEW YORK, Aug. 31, 2023 /PRNewswire/ -- The AI Governance Market is estimated to grow at a CAGR of 34.64% between 2022 and 2027. The market size is forecast to increase by 520.771 million, according to Technavio. The market is fragmented due to the presence of diversified international and regional companies. The increasing adoption of AI technologies across industries is a key factor driving market growth. This is due to the increasing usage of AI technologies across industries such as aerospace and defense, healthcare, and BFSI. Data privacy, bias, accountability, and transparency are major concerns. Some of the global AI governance techniques adopted in enterprises include ethical AI frameworks and algorithmic audits. As a result, there are strong governance frameworks in place within organizations to ensure responsible and ethical AI practices. These frameworks are used in industries like healthcare, banking, manufacturing, and transportation. Hence, these factors are expected to drive market growth during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, the latest trends and drivers, and the overall market environment. Request sample report 

AI Governance Market 2023-2027: Company Analysis

The market is fragmented, and the degree of fragmentation will accelerate during the forecast period. Competitors have to focus on differentiating their product offerings with unique value propositions to strengthen their foothold in the market. Market companies also have to leverage the existing growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments. Alphabet Inc., Amazon.com Inc., Ataccama Corp., Dataiku Inc., DataRobot Inc., Fair Isaac Corp., H2O.ai Inc., Informatica Inc., International Business Machines Corp., Kyndi Inc., Meta Platforms Inc., Microsoft Corp., pymetrics Inc., QlikTech International AB, Salesforce Inc., SAP SE, SAS Institute Inc., SparkCognition Inc., TIBCO Software Inc., and ZestFinance Inc. are among some of the major market participants.

Company Offerings

• Alphabet Inc. - The company offers AI governance solutions through its subsidiary Google LLC.
• Amazon.com Inc - The company offers AI governance solutions through Amazon Web Services.
• Ataccama Corp - The company offers an AI governance solution namely Ataccama ONE.

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AI Governance Market 2023-2027: Market Dynamics

Major Trends

The adoption of enterprise AI by SMEs is a major trend in the market. AI audibility and algorithmic accountability are among the emerging themes in the global AI governance market. There is a growing demand for devices that enable the examination and understanding of decision-making processes by AI algorithms due to the increasing complexity and opacity of AI systems. Such developments will therefore improve transparency, reduce bias, and offset the potential negative effects of AI algorithms. Thus, such factors are expected to drive market growth during the forecast period.

Significant Challenges

The lack of universally accepted standards and frameworks for AI governance is a significant challenge restricting market growth. There is a growing need for standardized, clear, and detailed rules to manage the ethical, legal, and social impacts of AI technology. Many organizations, governments, and regulators will find it difficult to create clear policies, enforce compliance, and foster trust in AI systems because of this inconsistency. To mitigate risk and maintain public trust in AI technology, it is essential to develop globally recognized standards and frameworks. Hence, these factors are expected to drive market growth during the forecast period.

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AI Governance Market 2023-2027: Segmentation

AI Governance Market is segmented as below:

• End-user 
• Government And Defense
• Healthcare Abd Life Sciences
• BFSI
• Retail
• Others
• Component 
• Solution
• Services
• Geography 
• North America
• Europe
• APAC
• Middle East And Africa
• South America

The government and defense segment is estimated to witness significant growth during the forecast period. Governments around the world understand the importance of adopting effective AI governance frameworks to ensure responsible and ethical adoption of these technologies. For example, the European Union's General Data Protection Regulation (GDPR) and the US Algorithm Accountability Act are among the most popular government initiatives in AI governance. Furthermore, the application of AI governance techniques in the defense sector is mainly based on parameters such as data security, algorithmic transparency, and compliance with ethical regulations. Hence, these factors are expected to drive segment growth during the forecast period.

For insights on global, regional, and country-level parameters with growth opportunities, historic (2017 to 2021) & forecast (2023-2027)  – Download a Sample Report

AI Governance Market 2023-2027: Key Highlights

• CAGR of the market during the forecast period 2023-2027
• Detailed information on factors that will assist AI governance market growth during the next five years
• Estimation of the AI governance market size and its contribution to the parent market
• Predictions on upcoming trends and changes in consumer behavior
• The growth of the AI governance market
• Analysis of the market's competitive landscape and detailed information on companies
• Comprehensive details of factors that will challenge the growth of the AI governance market companies

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Table of Contents

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by End User

7 Market Segmentation by Component

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Company Landscape

12 Company Analysis

13 Appendix

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SOURCE Technavio