AI Governance Global Market Report 2024

The AI governance market size has grown exponentially in recent years. It will grow from $0.2 billion in 2023 to $0.29 billion in 2024 at a compound annual growth rate (CAGR) of 45.1%. The growth observed in the historical period can be attributed to several factors, including the growing demand for transparency and trust in AI systems, increasing ease of access to historical datasets and the convenience of data storage, as well as a proliferating interest in ethical hacking and penetration testing. These factors collectively contributed to the development and adoption of AI governance practices during that time, as organizations sought to address concerns related to transparency, data access, and security in AI systems.

The AI governance market size is expected to see exponential growth in the next few years. It will grow to $1.28 billion in 2028 at a compound annual growth rate (CAGR) of 44.9%. The anticipated growth in the forecast period can be attributed to various factors, including expanding government initiatives to leverage AI technology and the increasing use of AI in retail. Noteworthy trends expected in the forecast period encompass advancements in artificial intelligence, the emergence of enterprise AI lifecycle management platforms, the emphasis on building ethical AI platforms, product innovations in the AI space, and the adoption of hybrid cloud management solutions.

The anticipated rise in government initiatives aimed at harnessing artificial intelligence (AI) technology is poised to propel the growth of the artificial intelligence (AI) governance market in the coming years. Government initiatives represent crucial acts or statements undertaken by authorities to address specific challenges or issues. In the context of AI governance, these initiatives play a pivotal role in shaping the framework and guidance necessary to ensure the responsible development and use of AI technologies. The objective is to derive societal benefits from AI while minimizing potential risks and harms. As an example, the Ministry of Innovation, Science, and Industry, a government agency in Canada, initiated the second phase of the Pan-Canadian artificial intelligence program in June 2023. This initiative is substantiated by a substantial investment exceeding US$ 443 million, highlighting the government's commitment to advancing the integration and commercialization of AI across diverse sectors of the country's economy. Consequently, the increased focus on government initiatives to leverage AI technology stands as a driving force behind the growth of the artificial intelligence (AI) governance market.

Prominent companies in the artificial intelligence (AI) governance market are actively developing innovative solutions, such as AI governance toolkits, to deliver reliable services to their customers. An AI governance toolkit comprises a collection of resources and practices specifically designed to assist organizations in responsibly developing, deploying, and managing AI systems. In November 2023, The International Business Machines Corporation (IBM), a US-based technology corporation, launched watsonx.governance. This AI governance toolkit is tailored to help businesses and governments manage the risks and complexities associated with generative AI, particularly large language models (LLMs). It provides proactive risk detection and mitigation capabilities, monitoring for factors such as fairness, bias, drift, and new LLM metrics. Watsonx.governance is part of the broader IBM Watsonx AI and data platform, which includes Watsonx.data, watsonx.ai, and watsonx.governance, collectively aimed at scaling and accelerating the impact of AI across various business sectors.

In July 2023, Databricks, a prominent data and artificial intelligence company headquartered in the United States, completed the acquisition of MosaicML for a significant sum of $1.3 billion. This strategic move is aimed at democratizing access to generative AI technology for organizations of varying sizes, allowing them to develop, possess, and safeguard generative AI models utilizing their proprietary datasets. By integrating MosaicML's platform into its offerings, Databricks anticipates empowering enterprise customers to construct large language models and generative AI models with enhanced security measures and cost-efficiency. MosaicML, a US-based platform renowned for its emphasis on AI governance throughout the training and deployment processes of advanced AI models, was identified as a strategic asset to augment Databricks' capabilities in the AI domain.

Major companies operating in the ai governance market report are Amazon.com Inc., Alphabet Inc., Google LLC, Microsoft Corporation, Robert Bosch GmbH, International Business Machines Corporation, Oracle Corporation, SAP SE, ABB Ltd., Tata Consultancy Services Limited, DXC Technology Company, Atos S.E., McAfee Corp., AVEVA Group plc, TIBCO Software Inc., Hexaware Technologies Limited, QlikTech International AB, Altair Engineering Inc., Scale AI Inc., Arthur, MOSTLY AI, Protopia AI, Impact AI, H2O.ai, Credo.AI Corp.

North America was the largest region in the AI governance market in 2023. The regions covered in the ai governance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ai governance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) governance refers to the framework of policies, procedures, and practices established to ensure the responsible and ethical development, deployment, and use of AI technologies. The goal of AI governance is to define guidelines and mechanisms that govern the entire lifecycle of AI systems - from data collection and model training to deployment and ongoing monitoring. This is done with the objective of maximizing the benefits of AI while minimizing potential risks and ensuring ethical use.

The main components of AI governance are solutions and services. AI solutions typically refer to technologies or systems that leverage AI to address specific challenges, perform tasks, or provide valuable insights across various domains. These solutions may be deployed on-premises or in the cloud and cater to organizations of various sizes, including large enterprises and small and medium-sized enterprises (SMEs). They find applications in various verticals such as banking, financial services, and insurance (BFSI), government and defense, healthcare and life sciences, media and entertainment, retail, information technology, telecommunications, automotive, and others.

The AI governance market research report is one of a series of new reports that provides AI governance market statistics, including the AI governance industry global market size, regional shares, competitors with an AI governance market share, detailed AI governance market segments, market trends, and opportunities, and any further data you may need to thrive in the AI governance industry. This AI governance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence (AI) governance market includes revenues earned by entities by providing services such as regulatory compliance services, ethical AI consulting, risk assessment and management, policy development, AI model auditing and validation, and continuous monitoring and improvement. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The artificial intelligence (AI) governance market also includes sales of conventional processors, neuromorphic hardware, and hardware security modules (HSMs). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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