AI Governance Market is Estimated to Witness High Growth

AI Governance Market

AI governance refers to supervision and policies to ensure the safe, ethical and robust development and application of artificial intelligence (AI). AI systems can exhibit undesirable behaviors such as unfair treatment due to biases or the lack of transparency. With the increasing adoption of AI technologies across domains like healthcare, government and finance where decisions impact humans, AI governance has become crucial to safeguard against model bias. AI governance solutions assist in reviewing models for fairness, respecting privacy and regulating high-risk AI.

The global AI Governance Market is estimated to be valued at US$ 246.18 Mn in 2023 and is expected to exhibit a CAGR of 28.8% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growing demand to protect vulnerable populations and uphold ethics in AI presents a major market opportunity for AI governance solutions. As AI models are increasingly used for critical tasks like credit decisions, healthcare diagnosis and police investigations, there is a need for rigorous testing and oversight to identify and mitigate biases related to gender, ethnicity or socio-economic status. AI governance vendors can tap into this opportunity by developing specialized tools, auditing services and best practice recommendations focused on algorithmic fairness. Establishing model accountability will be key to assuage regulatory pressures and build public trust in AI adoption going forward.

Porter's Analysis

Threat of new entrants: The AI governance market requires significant investments in R&D activities, thus posing high entry barriers for new players. However, supportive government initiatives and emergence of start-ups can lead to threat of new entrants.

Bargaining power of buyers: Large tech companies have substantial bargaining power as buyers due to their huge market dominance and demand for advanced AI systems. However, growing opportunities are empowering smaller buyers.

Bargaining power of suppliers: Major AI governance software and platform providers have moderate to high bargaining power as suppliers due to their technical expertise and industry-specific solutions. However, availability of open-source tools and emergence of new suppliers are reducing their power.

Threat of new substitutes: Other emerging technologies like machine learning, deep learning pose potential threat, however their capabilities are narrow as compared to full-spectrum AI governance platforms.

Competitive rivalry: The market is consolidated with presence of technology giants and specialist vendors. Intense competition exists based on product quality, features, pricing and customer support.

SWOT Analysis

Strengths: Growing AI deployments, increasing regulatory pressures, and availability of specialized solutions are driving strong demand.

Weaknesses: Lack of awareness, complexity of ensuring AI accountability at scale, and high costs of implementation are key challenges initially.

Opportunities: expanding into non-core verticals, offering customizable and automated tools, and developing ecosystem partnerships present major opportunities.

Threats: Data privacy regulations, model bias issues, and technical risks associated with advanced AI systems need to be adequately addressed.

Key Takeaways

The Global AI Governance Market Demand is estimated to be valued at US$ 246.18 Mn in 2023 and is expected to exhibit a CAGR of 28.8% over the forecast period 2024 to 2031.

Regional analysis indicates that North America will continue to dominate the market throughout the forecast period. Stringent regulations like GDPR are driving organizations to prioritize AI governance. Additionally, presence of leading technology companies and startups are fueling innovations.

Asia Pacific is anticipated to be the fastest growing region based on increasing adoption of disruptive technologies and supporting government policies for tech development. Countries like China, Japan and India are emerging as hotspots with substantial AI funding and initiatives.

Key players operating in the AI governance market are Groupe Emsland, Roquette Freères, The Scoular Company, COSUCRA - Groupe Warcoing, Ingredion Incorporated, Axiom Foods Inc., Yantai Shuangta Food Co. Ltd, Vestkorn Milling AS, Puris, Meelunie BV, AGT Food and Ingredients Inc., and Shandong Jianyuan Bioengineering Co. Ltd. Major players are focused on developing comprehensive and scalable governance solutions to address dynamic regulatory needs and expand market presence.

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