The global AI governance market is estimated to be valued at US$ 131.9 million in 2023 and is projected to grow at a CAGR of 46.60% during the forecast period of 2023-2030, according to a new report published by Coherent Market Insights.
Market Overview:
AI governance refers to a set of policies, procedures, and frameworks designed to ensure the responsible and ethical use of artificial intelligence technologies. The market for AI governance is driven by the increasing concerns regarding the ethical implications of AI algorithms and the need for transparent AI practices. With the rapid adoption of AI technologies across various industries, governments and regulatory bodies are focusing on developing guidelines and regulations to govern the use of AI and mitigate the associated risks. AI governance solutions help organizations to implement ethical AI practices, ensure fairness and transparency in AI decision-making, and comply with regulatory requirements.
Market Key Trends:
One of the key trends in the AI governance market is the growing demand for explainable AI (XAI) solutions. XAI refers to the ability of AI systems to provide clear explanations of their decisions and actions in human-understandable terms. As AI algorithms become increasingly complex and autonomous, there is a growing need for transparency and interpretability in AI decision-making. XAI solutions enable organizations to understand how AI models arrive at their conclusions, identify potential biases, and ensure accountability and trust in AI systems. The adoption of XAI solutions is expected to increase significantly in the coming years as organizations strive to address the ethical concerns surrounding AI and enhance the explainability of AI models.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the AI Governance Market Growth is relatively low. The market requires significant investments in technology, infrastructure, and expertise, making it difficult for new players to establish themselves. Moreover, existing companies in the market have already built strong brand reputation and customer trust, making it challenging for new entrants to compete.
Bargaining power of buyers: The bargaining power of buyers in the AI governance market is moderate. While there is a growing demand for AI governance solutions, buyers still have several options to choose from. This gives them some leverage to negotiate prices and terms with vendors. However, as the market continues to grow and consolidate, the bargaining power of buyers may decrease.
Bargaining power of suppliers: The bargaining power of suppliers in the AI governance market is high. AI governance solutions require advanced technologies and specialized knowledge, which are primarily provided by a limited number of suppliers. This gives suppliers the advantage of setting higher prices and exercising control over product availability. As the market grows, suppliers may gain more power, particularly if there is a shortage of resources.
Threat of new substitutes: The threat of new substitutes in the AI governance market is relatively low. AI governance plays a critical role in ensuring ethical and responsible use of AI technologies, and there are limited alternatives available to address these concerns. Additionally, the increasing regulatory scrutiny on AI applications further reduces the likelihood of substitutes entering the market.
Competitive rivalry: The competitive rivalry in the AI governance market is high. The market is dominated by key players such as Facebook, IBM, Google, and Microsoft, who have significant market share and established customer bases. These companies constantly strive to differentiate their offerings and gain a competitive edge through product innovation, strategic partnerships, and acquisitions. The high level of competition among key players drives continuous improvement and innovation in the market.
Key Takeaways
The global AI governance market is expected to witness high growth, exhibiting a CAGR of 46.60% over the forecast period of 2023-2030. This significant growth can be attributed to the increasing adoption of AI technologies across industries and growing concerns regarding the ethical use of AI. Governments and regulatory bodies are also placing greater emphasis on AI governance, further driving the demand for AI governance solutions.
In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the AI governance market. The region has a strong presence of key players and is at the forefront of AI technology adoption. The strict regulatory environment and increasing awareness about the responsible use of AI are driving the demand for AI governance solutions in this region.
Key players operating in the AI governance market include Facebook, IBM, Google, Microsoft, SAP, SAS Institute, and Salesforce.com. These companies have established themselves as industry leaders and are constantly innovating to stay ahead of the competition. Their strong brand reputation, extensive customer base, and technological expertise give them a competitive advantage in the market.
Overall, the AI governance market is poised for significant growth in the coming years. The increasing adoption of AI technologies and regulatory focus on ethical AI use will continue to drive the demand for AI governance solutions. Key players in the market will play a crucial role in shaping the future of AI governance through their innovative solutions and strategic partnerships.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
