Industry Overview
The AI Governance market size was valued at USD 1.2 billion in 2023. It is likely to grow up to USD 4.7 billion by 2030 at a CAGR of 37.5% during the forecast period ranging between 2025 and 2030.
The growing concern over AI discrimination and bias is a specific factor that fuels the growth of the market. It is also the result of the rising instances and concerns over ethical risks. These concerns are encouraging different companies to look for specific models for governance and adopt them to promote transparency and fairness.
The policies and regulatory framework that promotes AI ethics, accountability, and transparency are called AI governance. This is the specific model that promotes innovation while taking risk management into account. Different technologies and processes involve AI governance such as tools to detect AI bias and ethics principles and explainable AI. It also includes algorithm audits and specific compliance standards such as AI Act and GDPR.
AI governance is in high demand in cybersecurity, finance for fraud detection, healthcare for AI diagnostics, autonomous vehicles, and government policymaking. In addition to accountability and transparency, AI governance reduces bias to enhance fairness, and eliminates accidental consequences. It also promotes data privacy, AI, innovation, and security.
Global AI Governance Market Trends/Growth Drivers:
Rising adoption and use of AI across several industries
The global AI governance market is driven forward mainly due to the growing preference and adoption of AI across almost every industry across the globe. This includes finance, healthcare, automotive, and others due to its support for automation, predictive analyses and decision making. Rising demand calls for rising supervision by the regulators regarding security, AI ethics and compliance.
Other factors driving the growth of the market include controversies and bias regarding algorithm hiring, prominent AI failures, faulty facial recognition, growing demand for fairness tools and algorithm audits, stricter AI rules, need for transparent and accountable AI models, need for flawless risk management mechanisms, and developments in cybersecurity.
Global AI Governance Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2024
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U.S.D. 1.2 Billion
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Revenue Forecast in 2030
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U.S.D. 4.7 Billion
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Growth Rate
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37.5%
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Segments Covered in the Report
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By Component, By Deployment Mode, By Organization Size and By Industry Vertical
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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North America, Europe, Asia Pacific and Rest of the World
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Global AI Governance Market Challenges
Absence of uniform regulations for AI
There is no universal standard regulation for AI and therefore the differences in AI policies of different countries poses a significant challenge for widespread adoption and growth of the global AI governance market. This leads to compliance issues, inconsistencies, and uncertainties in creating AI solutions. Other growth hindrances include fairness issues, bias problems, higher complexities, high initial cost, rapid tech developments, outdated frameworks quickly, and adoption reluctance by businesses fearing compliance issues.
Global AI Governance Market Opportunities
Rising need for a transparent and ethical AI landscape
Rapid adoption of AI has increased the need for a transparent and ethical AI landscape, presenting a big opportunity for the global AI governance market to grow. This helps in more effective tools for AI bias detection and other governance frameworks. A few other factors that present novel avenues for the market growth include growth of regulatory technology (RegTech), stricter compliance rules, higher adoption of AI in different industries, rising risk management and AI security, rising demand for consistency and compliance certifications, and higher need for responsible AI implementation.
Global AI Governance Market Segmentation
VynZ Research provides an analysis of the key trends in each segment of the global AI governance market report, along with forecasts at the regional and country levels from 2025-2030. Our report has categorized the market based on Component, Deployment Mode, Organization Size and Industry Vertical.
Insight by Component
Software segment dominates due to rising demand
The global AI governance market is segmented into Software and Service as according to the components, out of which the software segment is likely to grow more than the other and dominate the market during the forecast period due to higher demand. It is required to ensure regulatory compliance, higher explainability, and more effective bias detection along with data protection and security.
Insight by Deployment Mode
- On-Premise
- Cloud-Based modes
Cloud-based mode rules due to higher adoption
Based on the deployment mode, the global AI governance market is split into On-Premise and Cloud-Based modes. Out of these two major segments, the cloud-based mode is gaining adoption across different industries and is likely to dominate the market during the study period due to higher adoption for its cost-effectiveness, scalability, and flexibility in regulatory updates and compliance automation.
Insight by Organization Size
- Small & Medium-Sized Enterprises
- Large Enterprises
SMEs section dominates due to higher adoption
The global AI governance market is also divided by organization size into Small & Medium-Sized Enterprises and Large Enterprises where the former dominates the market due to growing adoption and investments to ensure compliance. It is also expected to grow during the projected period due to rising demand for ethical usage across different industries and growing concern over data protection and ensuring the same.
Insight by Industry Vertical
- Finance
- IT
- Telecom
- Healthcare
- Retail
- Government
- Automotive
- other sectors
Finance and healthcare sectors dominate due to stricter regulations
The global AI governance market is further categorized into Finance, IT, Telecom, Healthcare, Retail, Government, Automotive, and other sectors according to industry verticals. Out of all these segments, the finance and healthcare sectors are likely to lead the market due to higher risks in implementation and regulatory requirements for fraud detection, loan approvals, patient data protection and security compliance.
Global AI Governance Market: Geographic Overview
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Vietnam
- Thailand
- Malaysia
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
North America leads the global AI governance market primarily due to the high rate of adoption of AI governance and stricter regulation. Supportive government initiatives also promote adoption.
The European region is steadily growing due to evolving regulations and a well-structured market. There is a growing demand and inclination among the companies to abide by the set rules and avoid penalties which is also having a notable impact on the adoption of AI governance.
The Asia-Pacific region is however the most promising region and is expected to grow at a higher CAGR during the forecast period due to higher adoption of AI governance in different industries to support growing research programs. There is also a significant rise in applications of AI across different industry sectors which is pushing adoption of AI governance along with the rise of smart citiesand stricter ethics policies of the governments.
Global AI Governance Market: Major Players
- IBM Corporation
- Microsoft
- Google DeepMind
- Siemens AG
- ANSYS Inc
- Credo AI
- Monitaur
- Holistic AI
- Polygraf AI
- FiscalNote
Global AI Governance Market: Recent Developments
IBM has partnered with a techno group called & to create end-to-end solutions for AI governance to improve framework, compliance, ethics and oversight.
Microsoft launched new tools such as Purview eDiscovery with better capabilities in AI governance, data security, and compliance as well as to organize workflows.
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