AI GOVERNANCE MARKET ANALYSIS

Market Challenges And Opportunities

Global AI Governance Market Drivers:

Rise in demand for transparency in AI decision making to drive the market growth

As per the IBM Institute for Business Value survey of global executives, the average expenditure on Artificial Intelligence is expected to increase in the coming three years. The use of AI has increased, and with it has increased the risk related to data responsibility, thus, transparency is becoming a major enabler for mitigating issues of trust, fairness, and discrimination. All these factors are gaining increasing attention in recent times. For instance, as per another survey by IBM, 81% consumers are concerned over the previous year with the way organizations are using their data, and 75% of consumers are less likely to put their trust in companies with their personal data. Thus, the growing demand for transparency in AI decision making is expected to drive growth of the global AI governance market during the forecast period.

Growing expansion of government initiatives for leveraging the AI technology to fuel the market pace

AI and ML are known to be two of the most transformative technologies in the space of computing that are changing the entire world. Governments of several countries across the globe are grappling to manage expanded budgets and pressing public financing requirements in the downturn, due to this, AI is redefining all the possible things with optimizations of restricted resources and efficiently addressing complex issues. Thus, growing initiatives by governments around the world to leverage Artificial intelligence technology is expected to boost growth of the global AI governance market during the forecast period.

Global AI Governance Market Opportunities:

Growing implementation of automation and AI-based systems by companies is expected to offer several growth opportunities in the global AI governance market during the forecast period. The use of AI and data that it provides will become an important aspect to the future of different industries such as Defense, Healthcare, Automotive, Government, and several others will enable developments in the market. Thus, companies are increasingly focusing on implementation of automation and AI-based systems into their businesses in order to enhance time and efficiencies. This will further create multiple growth opportunities in the global AI governance market during the forecast period.

Growing investment in artificial intelligence for governance is expected to create lucrative environment for growth opportunities in the global AI governance market during the forecast period. Organizations are prioritizing AI for governance as a major target for investments for innovations in the market. Several companies are focusing on streamlining their operations and increasing their efficiency, along with finding new insights and connections in their data. These factors are likely to drive the demand for AI governance in the future, which is expected to create growth opportunities in the market.

Global AI Governance Market Restraints:

Lack of expertise and skills for operating AI to hinder market growth

Many organizations invest fully in AI; however, more than half of them lack needed in-house skilled talent for executing their strategy. According to the Coherent Market Insights, 93% of the companies in the U.S. and U.K. consider AI to be a business priority and already have projects planned and in production. However, 51% of these companies lack right mix of skilled set for operating AI solutions in order to executing their strategies. Thus, shortage of skilled workforce is a major barrier in progression of AI initiatives. This factor in turn expected to hinder growth of the global AI governance market during the forecast period.

Stringent guidelines and ethical principles for AI to hamper the market growth

Several government agencies and research labs along with AI solution providers are involved in in-depth research for building comprehensive ethical principles for AI technology. From 2017, governments of several countries along with processional bodies, AI companies, and regulatory systems have imposed various principles and guidelines that offer a basic stage for showing the path to build robust AI regulations. However, even with the proliferation of these principles, the comprehensive guidelines are still not there. Thus, establishment of comprehensive ethical principles for AI is expected to restrain growth of the global AI governance market during the forecast period.