USD 146.51 Million
AI Governance Market Size, Share, and Growth Analysis
Global AI Governance Market By Deployment (On-premises, Cloud), By Organization Size (Large Enterprises, Small and Medium Enterprises (SMEs)), By Vertical (BFSI, Government And Defense), By Region -Industry Forecast 2025-2032
Report ID:
SQMIG45A2608 |
Region:
Global |
Published Date: January, 2025
Pages:
188
|Tables:
119
|Figures:
72
Format -
AI Governance Market Insights
AI Governance Market size was valued at USD 146.51 Million in 2023 and is poised to grow from USD 227.5 Million in 2024 to USD 2600.51 Million by 2032, growing at a CAGR of 35.6% during the forecast period (2025-2032).
Rapidly increasing use of artificial intelligence (AI) across all industry verticals and advancements in AI technologies are estimated to bolster the demand for AI governance going forward. Increasing demand for transparency in the decision-making process of AI models to ensure compliance with regulations and improve trust among users is also expected to promote the adoption of AI governance in the future. Imposition of stringent regulatory mandates necessitating the use of AI governance solutions is also offering new business scope for AI governance companies over the coming years. Moreover, as the use of AI increases in critical applications such as autonomous vehicles, healthcare diagnostics, and financial risk assessment, it is also expected to bolster the importance of AI governance solutions in the long run. Efforts of organizations to improve their reputation and credibility are also expected to favor the demand for AI governance solutions and services in the future. On the contrary, lack of standardization, lack of awareness among organizations, resistance to change, and complexity in monitoring of dynamic AI models are slated to impede the global AI governance market growth potential across the forecast period and beyond.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
On-premises
Fastest Growth
Cloud
Growth Rate
35.6% CAGR
Global AI Governance Market ($ Bn)
Country Share for North America Region (%)
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AI Governance Market Segments Analysis
Global AI governance market is segmented by component, deployment, organization size, vertical, and region. Based on component, the market is segmented into solutions and services. Based on deployment, the market is segmented into cloud and on-premises. Based on organization size, the market is segmented into large enterprises and small and medium enterprises (SMEs). Based on vertical, the market is segmented into BFSI, government and defense, healthcare and life sciences, media and entertainment, retail, IT and telecommunication, automotive, and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & and Africa.
Analysis by Deployment
On-premises segment is projected to account for the largest global AI governance market share going forward. Better control over data security and high flexibility offered by on-premises deployment allows this segment to hold sway over others. Growing emphasis on improving data privacy and security in AI governance operations and imposition of stringent mandates for the same are also expected to help this segment bring in the most revenue going forward. Finance and healthcare industry are projected to lead the adoption of on-premises AI governance solutions in the long run. However, high initial investments and maintenance costs are expected to impede the share of this segment to a certain extent.
Meanwhile, the demand for cloud deployment of AI governance is slated to rise at a robust pace in the future. Quick adoption of cloud-based solutions in organizations and advancements in cloud technologies are expected to help this segment emerge as a highly opportune one in the long run. Small and medium enterprises with limited spending potential are more likely to opt for cloud-based AI governance solutions as it eliminates the need for high infrastructure investments. Built-in updates and extensive support offered by cloud vendors are also expected to help this segment generate new opportunities for AI governance companies over the coming years.
Analysis by Organization Size
Large enterprises are forecasted to account for a major share of the global AI governance industry in the future. High spending potential and adoption of expansive AI models are expected to help this segment bring in the most revenue. Highly complex AI operations in large organizations make them subject to more stringent and complex regulations thereby necessitating the adoption of AI governance to ensure compliance. Moreover, these enterprises have the investment required to dedicate a complete workforce to maintain AI governance to build trust among its customers and also utilize the full potential of AI technology.
Meanwhile, the demand for AI governance in small and medium enterprises (SMEs) is slated to rise at an impressive CAGR over the coming years. Rapidly surging adoption of artificial intelligence solutions and tools in SMEs around the world to improve operations are creating new opportunities for AI governance providers. Increased emphasis on ensuring compliance with regulations to manage ethical and cybersecurity risks among SMEs are also expected to promote the demand for AI governance solutions via this segment. Regions rife with startups are also slated to offer lucrative opportunities for companies developing AI governance solutions for small and medium enterprises in the long run.
Global AI Governance Market By Deployment
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AI Governance Market Regional Insights
North America is forecasted to spearhead global AI governance industry across the study period and beyond. Imposition of stringent regulations, high emphasis on compliance with governance regulations, and surging use of artificial intelligence are some key factors cementing the dominance of this region. The United States is slated to emerge as the most opportune market in this region followed by Canada across the study period. Efforts to promote ethical AI use and the presence of leading artificial intelligence companies are also expected to bolster the demand for AI governance solutions and services in North America over the coming years.
Asia-Pacific is forecasted to emerge as the fastest expanding market for AI governance in the world. Rapidly increasing adoption of AI technology, increasing awareness regarding risks of ungoverned AI use, and imposition of stringent regulations are helping boost the sales of AI governance solutions in this region. High investments in the development of AI auditing, bias detection, and compliance tools in this region are also creating new opportunities for AI governance companies. China, India, South Korea, and Japan are estimated to be the most opportune markets for AI governance providers looking to make most out of the Asia-Pacific region.
Global AI Governance Market By Region
- Largest
- Fastest
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AI Governance Market Dynamics
Drivers
Surge in Adoption of AI
- The adoption of artificial intelligence technologies is increasing at a rapid pace across all industry verticals and this bolsters the demand for AI governance as well. The need for better AI governance frameworks to ensure ethical practices, data security, and compliance with regulatory standards is slated to create new opportunities for the global AI governance market outlook in the future.
Concerns Regarding Ethics and Bias in AI
- With increasing influence and use of artificial intelligence in decision-making across multiple industry verticals, concerns regarding bias, discrimination, and ethical dilemmas have risen in regard to use of AI. Investing the development and adoption of AI governance solutions can help companies overcome the issues of bias and ensure compliance with fair policies whilst promoting transparency in operations.
Restraints
Absence of Standardized Frameworks
- Standards and regulations for artificial intelligence vary from use case to use case as well as region to region. This has created a varied set of standards and the absence of a proper standardized framework for AI governance is projected to hamper the adoption of AI governance and slow down the market development potential on a global level through 2032.
Resistance to Change
- While AI governance is quite an essential part of AI deployment, some organizations may deem it as an unnecessary additional expense. Organizations as well as employees might resist the use of AI governance solutions to reduce complexity in their operations thereby hurting the global AI governance market forecast through 2032 and beyond.
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AI Governance Market Competitive Landscape
Creating and launching novel AI governance solutions is projected to be the prime focus of all companies going forward. Integration of advanced technologies to improve the capabilities of AI governance solutions is also a major trend in the global AI governance industry. Collaborations are slated to emerge as an essential strategy for all market players in the long run.
Top Players in AI Governance Market
- ABB Ltd.
- DXC Technology Company
- IBM Corporation
- Accenture
- Infosys Ltd.
- Microsoft Corporation
- NTT Data
- H2O.ai Inc.
- FICO
- Oracle Inc
- SAP SE
- Salesforce
- Siemens SA
- Tata Consultancy Services (TCS) Ltd
- TIBCO
Recent Developments
- In October 2024, UNESCO and the Thomson Reuters Foundation (TRF) joined hands to announce the launch of a new initiative focused on AI governance. AI Governance Disclosure Initiative is intended to help organization’s identify how AI models are being developed and used in their businesses to assess the risks of the same to society, individuals, and environment.
- In October 2024, The Fintech Open Source Foundation (FINOS) announced the release of the first draft of its AI governance framework for financial institutions. The framework outlines 15 risks and 15 controls custom tailored for AI systems leveraging LLMs in the financial services industry going forward.
- In February 2024, Collibra, a leading data intelligence provider announced the launch of its new AI governance solution called Collibra AI Governance. The new solution is intended to simplify and ensure compliance with legal and privacy regulations for AI models and applications.
AI Governance Key Market Trends
- Integration with Cybersecurity: AI governance providers can focus on integrating their offerings with cybersecurity solutions to protect sensitive data and reduce the risk of data breaches and cyberattacks. Focusing on this AI governance market trend can help AI governance providers improve the adoption scope of their offerings in the long run.
- Explainable AI (XAI): AI governance companies should also invest in the research and development of explainable AI (XAI) models to ensure transparency in AI decision-making. The use of explainable AI models can help AI governance companies overcome the issues of biases to improve trust and accountability for decision makers as well as stakeholders.
AI Governance Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing adoption of artificial intelligence around the world and rising concerns regarding its ethical bias are driving up the demand for AI governance solutions. However, resistance to change among organizations and absence of a standardized framework are slated to impede the adoption of AI governance in the future. North America is expected to spearhead the demand for AI governance owing to presence of a developed technological infrastructure in countries such as the United States and Canada. Use of explainable AI and integration with cybersecurity solutions are slated to present lucrative opportunities for companies in the long as this global AI governance market forecast.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 146.51 Million |
| Market size value in 2032 | USD 2600.51 Million |
| Growth Rate | 35.6% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Million |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on AI Governance Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on AI Governance Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the AI Governance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the AI Governance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the AI Governance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the AI Governance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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