The AI Governance Market Is Estimated To Record a CAGR of Around 62.4% During The Forecast Period
Market Highlights
The Global AI Governance market is projected to be valued at USD 114.24 Billion by 2033, recording a CAGR of around 62.4% during the forecast period. AI governance in the financial sector refers to the regulatory and supervisory expectations for AI models used in financial services. It involves implementing sound governance frameworks to ensure that AI models align with an organization’s objectives and values, while also addressing conduct and prudential risks. These frameworks should consider existing international standards and emerging common themes, such as reliability, accountability, transparency, fairness, and ethics. The development of international guidance or standards by financial standard-setting bodies could help jurisdictions embarking on digital transformation and serve as a minimum benchmark for the orderly deployment of AI technologies within the financial sector.
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The AI Governance market experienced a detrimental effect due to the Covid-19 pandemic. The COVID-19 pandemic has caused supply chain hiccups, which have decreased demand or created shortages in the market for AI governance. Spending by consumers and businesses has decreased significantly as a result of the travel restrictions and social distancing measures, and this trend is expected to persist for some time. The epidemic has altered end-user trends and tastes, prompting manufacturers, developers, and service providers to implement diverse tactics aimed at stabilizing their businesses.
Segmental Analysis
The global AI Governance market has been segmented based on Component, Deployment Mode, Organization Size and Vertical
Based on the Component,  the market is segmented based on Solution, Services. The solution segment dominated the market in 2022 with a market share of 65.03%. Owing to the existence of well-diversified market competitors, the solution sector is also expected to dominate the segment market throughout the projection period.
Based on Deployment Mode, the market has been divided into Cloud and On-premises. With a 53.8% market share, the on-premises category led the market in 2022. Some of the key trends in the on-premises AI governance market that are propelling the growth of the sector are data governance, explainable AI, edge computing, integration with DevOps workflows, scalability, and flexibility.
Based on the Organization Size,the market has been divided into Large enterprises and Small and medium-sized enterprises. With a 71.6% market share, the big enterprise category led the market in 2022. Companies are putting more emphasis on data security and privacy because they want to make sure that their AI systems safeguard sensitive data. Additionally, it is anticipated that the need for integrating AI governance to lower risk will increase as big businesses become more vulnerable to cyberattacks and other security-related problems, spurring market expansion in this area.
Based on Vertical, the market has been divided into BFSI, Government and Defense, Healthcare and Information & Communication Technologys and Other Verticals. In 2022, the Government and Defense category held a dominant portion of the market, accounting for roughly 19%. The market is expanding due to a number of trends ensuring the responsible, moral, and open application of AI in many fields, such as healthcare and life sciences.
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Regional Analysis
The AI Governance market is divided into five regions: North America, Europe, Asia-Pacific, South America, and the Middle East, &Africa. The North American region holds a dominant position in the AI Governance market. In 2022, the North American region held the largest market share, accounting for 31.93%. Because of the growing usage of artificial intelligence (AI) by businesses and governments, which is one of the key factors driving the industry’s growth, North America is anticipated to take a sizable part of the market. Legislators and government agencies in the United States have been developing rules and laws for automated systems and aluminum in recent years in an effort to strike a balance between preventing the adverse consequences of this technology and encouraging healthy competition and advancements. The Europe region is witnessing rapid growth and emerging as a significant market for the AI Governance industry With a focus on data privacy and ethical AI, Europe is another important market for AI legislation. Some recent EU regulations that have been established or proposed target data privacy, bias and discrimination, and algorithmic transparency. These include the General Data Protection Regulation (GDPR) and the AI Act. Furthermore, developing guidelines and standards for AI ethics has become more important, with organizations like the European Alliance and the high-level expert group on AI spearheading this effort.
