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The AI Governance Market size is forecast to increase by 520,771.88 thousand at a CAGR of 34.64% between 2022 and 2027. The growth of the market depends on several factors, including the increasing adoption of AI technologies across industries, the growing concerns about bias, fairness, and ethical implications of AI, and the rising demand for transparency, explainability, and accountability in Artificial Intelligence systems. To promote ethical and reliable AI practices, it promotes openness, accountability, fairness, and privacy while addressing potential hazards on the end-users such as government and defence, healthcare, BFSI, retail, and others.Its market growth analysis also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the market growth is the increasing adoption of AI technologies across industries and transparency and trust in AI systems. Factors such as the increasing usage of advancements in AI technologies across industries such as aerospace and defence, healthcare, and BFSI, among others are significantly fuelling the market growth. Hence, there are strong governance deep learning frameworks across organizations to ensure responsible and ethical AI practices.
There is increasing adoption of these Artificial Intelligence frameworks across industries such as healthcare, banking, manufacturing, and transportation due to the growing concerns about data privacy, bias, accountability, and transparency. Some of the comprehensive techniques adopted in enterprises include ethical AI frameworks and Algorithmic auditing. Hence, such factors are significantly driving the market growth during the forecast period.
A key factor shaping the market growth is the adoption of enterprise AI by SMEs. Some of the emerging significant themes in the market include Artificial Intelligence audibility and algorithmic accountability. Due to the increasing complexity and opacity of AI systems, there is a growing need for devices that enable auditing and comprehension of the decision-making processes of AI algorithms.
One of the main purposes of algorithmic accountability is to hold AI systems responsible for their activities, particularly when those actions influence people or society. Hence, such developments will improve transparency, lessen bias, and offset any potential negative effects of Artificial Intelligence algorithms. Thus, such factors are expected to drive the market growth and trends.
The lack of universally accepted standards and frameworks is one of the key challenges hindering the market growth. There is a growing need for standardized clear and thorough rules to handle the ethical, legal, and societal ramifications of Artificial Intelligence technologies as they are adopted and implemented across various industries. The Artificial Intelligence landscape will be fragmented with different methods and practices without standardized governance frameworks, resulting in inequalities in accountability and transparency.
Hence, due to this inconsistency, it will be difficult for several organizations, governments, and regulatory authorities to create clear policies, enforce compliance, and promote confidence in AI systems. Thus, it is essential to build globally recognized standards and frameworks to ensure responsible and equitable AI deployment while reducing risks and preserving public confidence in AI technology. These factors are expected to hinder the market growth during the forecast period.
Market Dynamic
Transparency in AI decision-making, adherence to regulatory compliance, and robust governance mechanisms are key. Responsible Artificial Intelligence practices, including robust testing of Artificial Intelligence algorithms, ensure ethical considerations and accountability. International collaboration drives economic value, while advancements in cloud solutions and machine learning algorithms enhance governance capabilities. Focus areas include addressing trust, fairness, and discrimination issues, especially with unstructured data. Next-generation computing architectures enable data quality, scalability, flexibility, and accessibility, catering to large enterprises and small & medium enterprises alike.
The government and defense segment is estimated to witness significant growth during the forecast period. One of the main end users of the market is the government and defence segment as governments across the world understand the importance of setting up effective frameworks to guarantee the responsible and ethical application of these technologies.
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The government and defense segment was the largest segment and was valued at USD 13,497.80 thousand in 2017. Hence, these bodies are actively involved in the process of creating rules, standards, and policies to address issues with Artificial Intelligence, such as transparency, bias, and privacy. For instance, some of the popular government initiatives include the General Data Protection Regulation (GDPR) of the European Union and the Algorithmic Accountability Act of the US. Some of the key applications of in defence include surveillance, threat identification, and strategic decision-making. Additionally, the adoption of techniques in defence heavily relies on parameters such as data security, algorithm transparency, and adherence to ethical regulation. Hence, such applications are expected to drive the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing adoption of techniques across enterprises is expected to drive the growth of the solutions segment during the forecast period. AI governance solution are one of the crucial components in the market. Most enterprises require an all-in-one solutions package comprising frameworks, methods, and technology to handle governance difficulties as the demand for moral and responsible AI practices increases. Some of the key options in this solution include Platforms for guidelines for compliance and tools for data protection. Hence, there is significant growth in the global Artificial Intelligence governance market due to these solutions' capacity to help organizations bargain the complex issues of Artificial Intelligence governance, and improve accountability. Hence, such factors are expected to drive the global AI governance market growth.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors for the significant growth of the market in North America is the significant presence of government organizations, technology corporations, and research institutions which are key players actively involved in establishing rules and practices. Furthermore, there are research and innovation that are being driven by partnerships between academic institutions and industrial players. Hence, North America is dominating the market due to its highly developed technology infrastructure and legal frameworks. Hence, such factors are expected to drive the market growth during the forecast period.
In the ever-evolving landscape of technology, Artificial Intelligence governance emerges as a crucial framework ensuring ethical principles and regulatory compliance requirements are met. Businesses are increasingly recognizing the importance of responsible AI governance practices in alignment with organizational goals. The development and implementation of frameworks play a pivotal role in fostering accountability within AI systems. Beyond mere compliance, companies are leveraging data responsibility to build trust among consumers, healthcare institutions, government agencies, and researchers.
Moreover, the economic value attributed to responsible AI practices is substantial, evident in the rising average expenditure on Artificial Intelligence (AI). With enhanced data management capabilities, organizations achieve cost efficiency while also unlocking new avenues for market research and growth. Comprehensive market analysis and reports further underscore the significance of AI governance in driving sustainable progress.
The Market forecasting industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Global Artificial Intelligence Governance Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc: The company offers solutions through its subsidiary Google LLC.
Amazon.com Inc: The company offers solutions through Amazon Web Services.
Ataccama Corp: The company offers a solution namely Ataccama ONE.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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AI Governance Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 34.64% |
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Market growth 2023-2027 |
USD 520,771.88 th |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
33.97 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 30% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Vendor Landscape
12 Vendor Analysis
13 Appendix
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