Market Size of AI Governance Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 264.18 Million |
| Market Size (2029) | USD 936.44 Million |
| CAGR (2024 - 2029) | 28.80 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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AI Governance Market Analysis
The AI Governance Market size is estimated at USD 264.18 million in 2024, and is expected to reach USD 936.44 million by 2029, growing at a CAGR of 28.80% during the forecast period (2024-2029).
The growing consumer concerns about privacy, misuse, and bias climb is among the key factors driving the demand for AI governance. One of the primary objectives of AI governance is to deliver ethical and transparent AI to establish accountability, oversight, and responsibility.
- Enterprises increasingly recognize the value of incorporating artificial intelligence (AI) into their business processes to improve operational efficiency and reduce cost by automating process flows.
- Thus, companies have been using autonomous processes to improve operations and change the face of customer service (for example, through AI-powered chatbots) while spurring innovation to new heights. AI is a set of algorithms that can solve specific problems and works best with a significant volume of high-quality Big Data. Chatbots can cut down the operational costs for businesses by up to 30%.
- The growing interest of enterprises in AI Governance frameworks is also encouraging vendors and startup companies to develop innovative frameworks that can meet the demand of their customers. For instance, in October 2021, Credo AI, a San Francisco-based company, announced its focus on building ethical AI to help companies manage their artificial intelligence products' regulatory and ethical risks. The company tries to do that by providing an "auditable record" of the data and decisions that go into creating, testing, deploying, and monitoring AI products.
- AI and Machine learning (ML) has significantly helped in analyzing data related to COVID-19. In April 2020, Amazon Web Services launched Cord-19 Search, a new website powered by ML that could help researchers quickly and easily utilize natural language questions to search tens of thousands of research papers and documents. Since research papers and other documents often involve confidential information, the demand for effective governance frameworks is expected to grow.
