AI Governance Is Driven by Increasing Need for
Transparency, Accountability and Bias Management

AI governance involves developing and applying governance
strategies to ensure AI systems are developed and used in an ethical,
transparent and accountable manner. With the growing adoption of advanced AI
technologies across industries, there is increasing focus on addressing risks
related to bias, unfairness and lack of explainability in automated decision
making. AI governance aims to establish processes and oversight mechanisms to
ensure AI systems respect human values, privacy rights, and other ethical
considerations over their entire lifecycles. Key aspects of AI governance include
establishing data governance practices, conducting impact assessments,
implementing algorithm audits and monitoring, as well as making high-level
decisions around AI strategy, roadmaps and budgets.



The Global AI Governance Market is estimated to be valued at US$ 222.77 Bn  in 2024 and is expected to exhibit a CAGR of 8.1%  over the forecast period 2024 to 2030.



Key Takeaways



Key players operating in the AI Governance market are Groupe Emsland, Roquette
Frères, 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.



The growing AI
Governance Market Demand such as healthcare, manufacturing, retail and
autonomous vehicles is driving the need for establishing governance frameworks
to ensure development and use of ethical and responsible AI technologies.
Various governments are also introducing new regulations around AI safety and
accountability, further accelerating investments in AI governance solutions.



Key players are expanding their global presence and capabilities through
strategic partnerships and acquisitions. In March 2023, Anthropic acquired
Constitutional AI to enhance its capabilities around self-supervised learning
and Constitutional AI techniques. Several players are also launching new tools,
training programs and services focused on Asia and Europe to capitalize on
growing governance needs in these regions.



Market Drivers



The key driver for the AI governance market is the increasing need for
transparency, accountability and bias management in AI systems. With the
widespread uses of AI coming under scrutiny due to concerns around opaque
decision making, lack of oversight and potential for discrimination, there is a
growing demand for mechanisms to understand, certify and continually evaluate
AI models. Regulatory mandates requiring companies to address AI risks and
perform due diligence are also contributing to the growing focus on and
investments in AI governance solutions and services.



Current Geopolitical Situation Impacting AI Governance Market Growth



The current geopolitical tensions and supply chain disruptions are posing
challenges for the growth of the AI governance market. Issues around data
privacy and security have intensified due to the Ukraine conflict and rising
tensions between major countries. There are growing concerns about how AI
systems could be compromised or misused during periods of political instability
and conflict. Governments are focusing more on developing regulatory frameworks
to ensure responsible and ethical use of AI while protecting critical
infrastructure and data. However, differing privacy and data usage policies
across regions pose difficulties for companies operating globally. To ensure
sustained growth, players in the AI governance market need to invest more in
developing transparent, interoperable and accountable AI systems. Adopting
universal data governance standards and conducting impartial audits and reviews
of AI models could help address regulatory concerns. Partnerships between
private companies and governments will also be crucial to build public trust in
AI and enable its safe, secure deployment across various domains.



European Region Dominates AI Governance Market



Europe accounts for the largest share of the global AI governance market in
terms of value. Stringent data privacy laws and early focus on ethics in AI
have driven greater investments from European companies in governance,
accountability and oversight of AI systems. Countries like Germany and France
have taken a lead in charting out comprehensive governance guidelines.
Moreover, significant presence of technology giants and startups focusing on
human-centered AI has supported market growth. The region's top position is
further solidified by active collaborations between governments, academics and
businesses to standardize AI governance practices. However, with growing
regulatory scrutiny and data residency norms, companies may shift more workload
to cloud infrastructure located within Europe.



Asia Pacific Emerges as Fastest Growing Region



The Asia Pacific region is expected to witness the fastest growth in the AI
governance market during the forecast period. This can be attributed to
increasing adoption of AI across major sectors like manufacturing, healthcare,
education in countries like China, India, Japan and South Korea. Significant
R&D investments and startup funding and expanding digital economies are
encouraging widespread integration of AI. Furthermore, governments are
formulating supportive policies to accelerate responsible AI development. For
example, India's National Strategy on AI aims to apply AI for social good while
mitigating risks. Meanwhile, China is focusing on AI safety research. Favorable
policy support coupled with rapid technology diffusion will continue propelling
the Asia Pacific AI governance market.

Get more insights on: AI
Governance Market