AI Governance MarketSize and Trends

The global AI governance market size was valued at USD 131.9 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 46.60% from 2022 to 2030. The rise in regulatory compliances around AI, increase in demand for better security of data and systems, and advancements in ML algorithm and deep learning frameworks are some of the major factors driving the growth of this market.

Global AI Governance Market Trends:

Increasing use of AI in retail is a growing trend in the market

The retail industry around the world is witnessing major transformation. Customers are becoming digital natives, due to which their preferences for channel and purchasing habits continue to change. The transformation to digital is creating worries around the data driving the digital transformation. This in turn is creating demand for appropriate AI governance for improving overall retail performance, to overcome challenges, as well as to lead the highly powerful retail competition. Thus, this trend is expected to continue in the market in the coming future.

Services segment is gaining traction in the market

The integration services segment is likely to gain dominating share in the global AI governance market during the forecast period. The implementation of AI involves various technicalities, and the demand for integrating AI governance solutions into the IT infrastructure of companies is also growing all over the world. These factors in turn are driving the growth of service segment among other components. This in turn is expected to augment growth of the global AI governance market during the forecast period.

Global AI Governance Market Segmentation:

The global AI governance market report is segmented into Component, Deployment, and End-User Vertical.

Based on Component, the market is segmented into Solution and Services. Out of which, Solution is expected to dominate the global market over the forecast period and this is attributed to the presence of well-diversified market players. Such vendors are focusing on providing new, innovative solutions consistently in line with technological development to cater the growing customer demand in several end-user industry verticals. For instance, in October 2021, Datatron announced advancement in its MLOps and AI governance solution, which makes the cataloging, operationalizing, monitoring, and governing AI/ML models easy for enterprises.

Service segment is also expected to witness significant growth in the near future and this is owing to the rise in adoption of AI governance solutions, leading to rise in demand for software integration services, installation services, and deployment, maintenance, and upgradation services. Implementation of AI governance platforms and software involves technicalities, which along with the demand for integrating them into IT infrastructure of clients is likely to drive growth of the integration services.

Based on Deployment, the market is segmented into On – Premise and Cloud. Out of which, Cloud is expected to dominate the global market over the forecast period and this is attributed to the various advantages of using cloud deployment of AI governance. One of the major benefit of cloud-based services is the ability of allocating assets precisely. With this users can remotely audit and monitor the observance of pre-existing rules along with IT guidelines adhering to existing services contracts with Cloud service providers. Thus, the segment is likely to show strong growth.

On Premise segment is also expected to witness significant growth in the near future and this is owing to the demand for conventional on-premise environment that offers single monolithic network with appropriate security measures. Even though deployment of cloud solutions has increased with time, it still lacks proper security measures for protecting the data and applications for cloud users.

Figure 2: Global AI Governance Market Share (%), By Component, 2022