AI Governance Market Size - By Component (Solution [Platform, Software Tools], Services [Consulting, Integration, Support & Maintenance]), Deployment Model (Cloud, On-premises), Organization Size (Large Enterprise, SME), Application & Forecast, 2024 – 2032

AI Governance Market Size

AI Governance Market size was valued at USD 145.5 million in 2023 and is anticipated to grow at a CAGR of over 52% between 2024 and 2032. The proliferating interest in ethical hacking and penetration testing is driving the market size. The increasing awareness about the vulnerabilities and risks associated with digital systems among organizations is raising the demand for ethical hackers and penetration testers to identify & address these weaknesses.
 

The focus on ethical hacking and penetration testing is propelled by the need to enhance cybersecurity and protect against malicious attacks. This has led to the growth of companies providing ethical hacking services, vulnerability assessments, and penetration testing solutions. The rising interest in these practices highlights the importance of ethical behavior in the digital realm, fueling the market growth.
 

With AI and IoT applications becoming more prevalent in various industries, concerns about the ethical implications of these technologies are growing. Ethical AI and IoT solutions are witnessing high demand due to increasing focus on principles such as transparency, fairness, accountability, and privacy. This drive to develop and implement ethical AI & IoT systems is fueling the AI governance market growth with companies providing ethical AI & IoT services, consulting, and solutions.
 

The lack of trained & skilled professionals is hampering the AI governance industry growth. The demand for ethical practices in the digital realm is increasing; however, there is a shortage of individuals with the necessary knowledge & expertise in areas such as cybersecurity, ethical AI, privacy, and data governance. Moreover, owing to the complexities and evolving nature of AI governance, there is a growing need for professionals who can effectively navigate these ethical challenges. The shortage of trained personnel also limits the ability of organizations to implement and maintain robust ethical practices.
 

COVID-19 Impact

Pandemic-induced lockdowns and restrictions have led to a surge in online activities including remote learning, telehealth, and virtual social interactions. This shift in online behavior has raised concerns about digital well-being, online safety, and responsible digital citizenship. The market for digital literacy and education, which is focused on promoting ethical online behavior and addressing digital divide issues, has gained prominence during the pandemic. This rapid adoption of digital technologies, such as cloud computing, AI, and IoT, has necessitated a greater focus on digital ethics. As organizations strive to implement these technologies ethically, there is an increased demand for ethical AI, responsible technology development, and digital ethics consulting services.
 

AI Governance Market Trends

Organizations are seeking guidance from AI ethics consulting firms and service providers to navigate the complexities of AI governance. These services encompass ethical AI strategy development, impact assessments, policy designing, and employee training to promote responsible AI practices. AI ethics consultants help organizations establish monitoring and evaluation mechanisms to ensure ongoing compliance with ethical AI practices. This includes setting up systems to track & assess AI system performance, identify potential biases or risks, and continuously improve ethical AI governance over time.
 

AI Governance Market Analysis

Based on component, the solution segment is poised to witness 48% CAGR during the forecast period. AI governance solutions refer to software tools, platforms, and technologies designed to address the ethical, legal, and societal challenges associated with AI. These solutions encompass a range of functionalities such as bias detection & mitigation, privacy protection, model governance, and transparency. The demand for AI governance solutions is increasing as organizations recognize the need for robust frameworks to ensure ethical & responsible AI development and deployment.
 

Based on application, the AI governance market from government & defense segment is projected to observe 50% CAGR through 2032. This sector requires AI systems that are transparent, accountable, and adhere to ethical principles including ensuring fairness, mitigating biases, protecting privacy, and maintaining the integrity of AI systems. The demand for AI governance solutions and services in the government & defense sector is set to grow as organizations prioritize responsible AI adoption and seek to address the unique ethical challenges specific to their domains.
 

The North America AI governance market held over 40% of the revenue share in 2023 and is estimated to record a CAGR of around 50% till 2032. The high prevalence of cybersecurity risks across North America has significantly contributed to the industry growth. Incidents including data breaches, cyberattacks, and privacy violations have raised awareness about the ethical implications of digital technologies.
 

Organizations are increasingly recognizing the need for responsible data handling, privacy protection, and accountable AI systems. This has created a high demand for cybersecurity solutions, privacy-enhancing technologies, ethical AI development, and consulting services in the field of digital ethics. As a result, the market for digital ethics has expanded to address the growing concerns and challenges posed by cybersecurity attacks in North America.
 

AI Governance Market Share

Major companies operating in the AI governance industry include:

• Alphabet Inc.
• BigID
• Capgemini
• Deloitte
• Everis
• EY
• Facebook Inc.
• IBM Corporation
• KPMG
• Looker
• Maxwell IT
• Microsoft Corporation
• Oracle Corporation
• PwC
• SAP SE
• SAS
• Sovrin Foundation
• Stefanini
   

AI Governance Industry News

• In April 2023, Amazon Web Services launched Amazon Bedrock, a new service that makes FMs from AI21 Labs, Anthropic, Stability AI, and Amazon available via an API. Bedrock makes it simple for clients to create and grow generative AI-based apps with FMs, providing access for all builders.
   

The AI governance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Component

• Solution
  • Platform
  • Software tools 
• Services
  • Consulting
  • Integration
  • Support & maintenance

Market, By Deployment Model

• Cloud
• On-premises

Market, By Organization Size

• Large Enterprises
• Small & Medium-sized Enterprises (SME)

Market, By Application

• BFSI
• Government & Defense
• Healthcare & Life Science
• Media & Entertainment
• IT & Telecom
• Automotive
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
• Latin America
  • Brazil
  • Mexico
• MEA
  • UAE
  • Saudi Arabia
  • South Africa