February 29, 2024
AI Governance Market
Ict

The AI Governance Market Is Driven By Increasing Demand For Transparency In AI Systems

The AI governance market encompasses technologies and services that help oversee the development and application of artificial intelligence systems to ensure safety, fairness, and accountability. With AI becoming increasingly sophisticated and integral to critical business operations and government functions, there is a growing need for governance solutions that provide transparency into how AI systems are functioning and help mitigate potential risks. AI governance tools allow organizations to monitor AI models for biases, quantify and explain decisions made by AI, and audit systems to identify problems before them negatively impact users or operations.

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

Market key trends:

One of the major trends in the AI governance market is the increasing focus on model monitoring. As AI models become more complex with deeper neural networks, it is challenging for humans to fully understand why models are making certain decisions. AI governance solutions aimed at model monitoring allow organizations to continuously track model performance, detect data or concept drift that could undermine model accuracy, and identify potential unfair treatment or unintended biases. These tools provide critical transparency that helps organizations address issues proactively and ensure AI systems remain effective and aligned with ethical standards over time. Model monitoring capabilities are becoming a key differentiating factor for various AI governance platform vendors as transparency and oversight of advanced machine learning models grows in importance.

Porter’s Analysis

Threat of new entrants: The threat of new entrants entering the AI Governance market is moderate as substantial financial and technological capabilities are required to deploy AI techniques and solutions.

Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of several solution providers offering varied AI governance solutions to meet customer requirements.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the availability of alternatives and the lack of switching costs for customers.

Threat of new substitutes: The threat of substitutes is low as AI governance solutions offer unique applications that cannot be easily substituted.

Competitive rivalry: Due to the growth opportunities and significant investment in R&D by key players, the competitive rivalry in the AI governance market is high.

Key Takeaways

The Global AI Governance Market Size is expected to witness high growth. The global AI Governance Market is estimated to be valued at US$ 246.18 Mn in 2024 and is expected to exhibit a CAGR of 28.8% over the forecast period 2024-2031.

Regional analysis comprises North America dominated the market in 2024 with a share of over 35%. The growing adoption of advanced AI techniques by organizations for improving work productivity and minimizing losses is driving the growth of the AI governance market.

Key players operating in the AI Governance market are Groupe Emsland, Roquette FreÌ€res, 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. Key players are focusing on new product launches and partnerships with technology providers to strengthen their position in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it