AI Governance Market

AI Governance Market by Component (Solutions (Platforms and Software Tools) and Services), Vertical (BFSI, Healthcare and Life Sciences, Government and Defense, Telecom, Retail, and Automotive), and Region - Global Forecast to 2025

Report Code: TC 7355 Sep, 2019, by marketsandmarkets.com

[107 Pages Report] AI governance market size to grow from USD 51 million in 2020 to USD 316 million by 2025, at a CAGR of 44.3% during the forecast period. The increasing government initiatives to leverage the benefits of AI technology and increasing need for building trust in AI systems and growing demand for transparency in AI decisions are some of the major factors that are expected to drive the growth of this market.

AI Governance Market

Services segment to grow at a higher CAGR during the forecast period

On the basis of component, the AI governance market is segmented into solutions and services. The services segment plays an integral part in the software life cycle while implementing platforms and executing activities related to it. These services include consulting, integration, and support and maintenance, which are required to deploy, execute, and maintain AI governance solutions. They help in building strategic and operational plan to identify the effective way to achieve business goals.

Automotive segment to grow at the highest rate during the forecast period

Based on vertical, the AI governance market is segmented into Banking Financial Services and Insurance (BFSI), government and defense, healthcare and life sciences, media and entertainment, retail, telecom, automotive, and others. Autonomous transportation is one of the areas in the automotive industry where the AI governance solutions are expected to be playing a major role because if autonomous vehicle makes a mistake in decision-making, it can directly lead to the loss of life. Therefore, as self-driving cars can have major role in making life and death-related decisions, they are expected to become major adopter of AI governance solution.

AI Governance Market

North America to hold the largest market size during the forecast period

North America is expected to hold the largest market size in the global AI governance market, while Europe is expected to grow at the highest CAGR during the forecast period. North America is expected to be the leading region in terms of adopting and developing AI governance solutions. There are various developments happening in the European region owing to AI governance, which is why Europe is projected to grow at the fastest rate during the forecast period. The adoption of AI-powered services is expected to grow in the region, owing to the growing ethical issues across AI technology and increasing need to build legal framework to ensure the ML algorithm is developed for the good cause of humanity.

Key AI Governance Market Players

Major vendors in the global AI Governance market include IBM (US), Google (US), Facebook (US), AWS (US), Microsoft (US), Salesforce.com (US), SAS Institute (US), SAP (Germany), FICO (US), 2021.AI (Denmark), ZestFinance (US), Pymetrics (US), H2O.AI (US), and integrate.ai (Canada). These vendors have adopted various organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers and acquisitions, to expand their presence in the global AI governance market further.

IBM (US) is one of the leading AI and analytics solution providers. It offers AI-based solutions and services to help marketers automate and operationalize their business processes, thereby driving their revenues. The company entered into the AI governance market space by launching 2 products, namely AI Fairness 360 open-source toolkit and Watson-based OpenScale platform. In September 2018, the company launched AI Fairness 360 open-source toolkit, and in October 2018, it has launched Watson based OpenScale platform respectively, to help organizations govern their AI models across their life cycle and provide fair outcomes. The customers can avail the OpenScale platform through cloud or the on-premises deployment model. The platform comprises Machine Learning (ML) and deep learning frameworks, which help in gaining impartial outcomes in the production model. The OpenScale platform helps application developers, data scientists, and enterprises track and monitor AI models across its life cycle. Apart from this, IBM announced new software capability, Watson-based Business Automation Intelligence software, which would be available soon to help business leaders use AI into applications to automate business processes. These initiatives show that IBM is increasingly working toward innovation and product development to gain a competitive advantage.

Scope of AI Governance Market Report

Report Metrics

Details

Market size available for years

2019-2025

Estimated year considered

2019

Forecast period

2020-2025

Forecast units

Value (USD)

Segments covered

Component (Solutions and Services), Solutions (Software Tools, Platforms), Vertical, and Region

Geographies covered

North America, Europe, APAC, RoW

Companies covered

IBM (US), Google (US), Facebook (US), AWS (US), Microsoft (US), Salesforce (US), SAP (Germany), SAS Institute(US), integrate.ai(US), H2O.ai(US), FICO (US), 2021.AI (Denmark), ZestFinance (US), Pymetrics (US).

This research report categorizes the AI governance market to forecast revenues and analyze trends in each of the following submarkets:

By Component, the AI governance market is segmented as follows:

  • Component
    • Solutions
      • Platform
      • Software Tools
    • Services
      • Consulting
      • Integration
      • Support and Maintenance

By Vertical, the AI governance market is segmented as follows:

  • BFSI
  • Government and Defense
  • Healthcare and Life Sciences
  • Media and Entertainment
  • Retail
  • Telecom
  • Automotive
  • Others (Education, Travel and Tourism, Manufacturing, and Energy and Utilities)

By Region, the AI governance market is segmented as follows:

  • North America
    • US
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • Japan
    • India
    • Singapore
    • Rest of APAC
  • RoW
    • Middle East and Africa (MEA)
    • Latin America

Recent developments

  • In July 2019, Google added new capabilities to its What-If Tool to enable users to use the tool for XGBoost and Scikit-learn models that are deployed on the AI platform. The user can enable this capability by using the method call.
  • In 2019, Facebook partnered with the Technical University of Munich (TUM) to build an independent AI ethics research center. Moreover, Facebook has funded TUM with USD 7.5 million to research for identifying potential risks and driving factors of the AI technology.

Critical Questions the Report Answers

  • What are the current trends that are driving the AI governance market?
  • Where will all these developments take the industry in the mid to long term?
  • Who are the top vendors in the market, and what is their competitive analysis?
  • What are the key driving factors and challenges impacting the market?
  • Which region is at the forefront of various initiatives that would increase the adoption of AI governance solutions?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

Table of Contents

1 Introduction (Page No. - 15)
    1.1 Objectives of the Study
    1.2 Market Definition
    1.3 Market Scope
           1.3.1 Market Segmentation
           1.3.2 Regions Covered
    1.4 Years Considered for the Study
    1.5 Currency Considered
    1.6 Stakeholders

2 Research Methodology (Page No. - 19)
    2.1 Research Data
           2.1.1 Secondary Data
           2.1.2 Primary Data
                    2.1.2.1 Breakup of Primary Profiles
                    2.1.2.2 Key Industry Insights
    2.2 Market Breakup and Data Triangulation
    2.3 Market Size Estimation
           2.3.1 Top-Down Approach
           2.3.2 Bottom-Up Approach
    2.4 Market Forecast
    2.5 Assumptions for the Study
    2.6 Limitations of the Study

3 Executive Summary (Page No. - 26)

4 Premium Insights (Page No. - 31)
    4.1 Attractive Opportunities in the Market
    4.2 AI Governance Market: Top 4 Verticals
    4.3 AI Governance Market: Top 3 Verticals and Regions
    4.4 AI Governance Market, By Vertical

5 Market Overview and Industry Trends (Page No. - 34)
    5.1 Introduction
    5.2 Market Dynamics
           5.2.1 Drivers
                    5.2.1.1 Increasing Government Initiatives to Leverage the AI Technology
                    5.2.1.2 Increasing Need for Building Trust in AI Systems and Growing Demand for Transparency in AI Decisions
                    5.2.1.3 Growing Regulatory Compliances Around the Technology
           5.2.2 Restraints
                    5.2.2.1 Establishing Comprehensive Ethical Principles for AI
           5.2.3 Opportunities
                    5.2.3.1 Reduction in Gender Bias and Discrimination Through the Use of AI
           5.2.4 Challenges
                    5.2.4.1 Inadequate AI Expertise and Skills
                    5.2.4.2 Clean and Relevant Data Required to Train Ml Algorithms
    5.3 Common AI Governance Principles
    5.4 Use Cases
           5.4.1 Scenario 1
           5.4.2 Scenario 2
           5.4.3 Scenario 3
    5.5 Regulatory Implications
           5.5.1 General Data Protection Regulation
           5.5.2 Governance, Risk, and Compliance Standards
           5.5.3 Health Information Technology for Economic and Clinical Health
           5.5.4 Health Insurance Portability and Accountability Act
           5.5.5 Federal Trade Commission
           5.5.6 Securities Financing Transactions Regulation

6 AI Governance Market, By Component (Page No. - 41)
    6.1 Introduction
    6.2 Solutions
           6.2.1 Platforms
                    6.2.1.1 Increasing Need for A Comprehensive Solution to Build AI Governance Solutions to Drive the Growth of the Platforms Segment
           6.2.2 Software Tools
                    6.2.2.1 Software Tools to Provide an Effective Way for Helping Enterprises Add AI Governance Capabilities Into the Existing Architecture
    6.3 Services
           6.3.1 Consulting
                    6.3.1.1 Need for an Enhanced Strategic Outlook, Improved Performance Efficiencies, and Business Transformation to Drive the Growth of Consulting Services
           6.3.2 Integration
                    6.3.2.1 Need for Feasible Integration Services to Drive the Growth of Integration Services
           6.3.3 Support and Maintenance
                    6.3.3.1 Complexity of Operations and the Need for Regular Assistance During the Software Life Cycle to Foster the Growth of Support and Maintenance Services

7 AI Governance Market, By Vertical (Page No. - 46)
    7.1 Introduction
    7.2 Banking, Financial Services, and Insurance
           7.2.1 Cost Associated With Compliance Requirements to Boost the Adoption of AI Governance in the BFSI Vertical
    7.3 Government and Defense
           7.3.1 AI Governance Solution to Become Critical in Government and Defense Areas Such as Autonomous Weapons and Crime Fighting Models
    7.4 Healthcare and Life Sciences
           7.4.1 Healthcare and Life Sciences Organizations to Adopt AI Governance Solutions to Manage Medical Treatments and Diagnosis Effectively
    7.5 Media and Entertainment
           7.5.1 Growing Data Privacy Concerns to Create Demand for AI Governance Solutions in the Media and Entertainment Vertical
    7.6 Retail
           7.6.1 Product Recommendation and Planning to Become Crucial in the Retail Vertical to Adopt AI Governance Solutions
    7.7 Telecom
           7.7.1 Telecom Vertical to Adopt AI Governance Solutions for the Effective Management of Assets
    7.8 Automotive
           7.8.1 AI Governance Solutions to Become Crucial in Self-Driving Cars
    7.9 Others

8 AI Governance Market, By Region (Page No. - 52)
    8.1 Introduction
    8.2 North America
           8.2.1 United States
                    8.2.1.1 Government Initiatives to Establish Guidelines for Ethical AI to Boost the Adoption of AI Governance Solutions in the Us
           8.2.2 Canada
                    8.2.2.1 Increasing Adoption of AI Technology Among the Banking and Retail Industry to Drive the Adoption of AI Governance in Canada
    8.3 Europe
           8.3.1 United Kingdom
                    8.3.1.1 Increasing Adherence to Compliance Policies Regarding AI Technology to Boost the Adoption of AI Governance Solutions in the UK
           8.3.2 Germany
                    8.3.2.1 Manufacturing and Automotive Industry to Adopt AI Solutions in Germany
           8.3.3 France
                    8.3.3.1 France’s Governmental Initiatives to Become an AI Hub to Drive the Adoption of AI Governance
    8.4 Asia Pacific
           8.4.1 China
                    8.4.1.1 Heavy Investments in Advanced Technologies to Boost the Adoption of AI Governance Solutions in China
           8.4.2 Japan
                    8.4.2.1 Increasing Digitalization Initiatives to Provide Opportunities to Deploy AI Governance Solutions in Japan
           8.4.3 India
                    8.4.3.1 Initiatives on Advanced Technologies Would Enhance the Adoption of AI Governance Solutions in India
           8.4.4 Singapore
                    8.4.4.1 Government Initiatives to Enhance the Adoption of AI Governance in Singapore
           8.4.5 Rest of Asia Pacific
    8.5 Rest of the World
           8.5.1 Middle East and Africa
                    8.5.1.1 Increasing Investments in Advanced Technologies to Drive the Growth of AI Governance in Mea
           8.5.2 Latin America
                    8.5.2.1 Growing Technological Advancements to Drive the Growth of AI Governance in Latin America

9 Company Profiles (Page No. - 74)
    9.1 Introduction
(Business Overview, Platforms & Solutions, Key Insights, Recent Developments, SWOT Analysis, MnM View)*
    9.2 IBM
    9.3 Google
    9.4 Microsoft
    9.5 Facebook
    9.6 SAP
    9.7 Salesforce.Com
    9.8 Fico
    9.9 AWS
    9.10 ZestFinance
    9.11 2021.AI
    9.12 Pymetrics
    9.13 SAS Institute
    9.14 H2O.AI
    9.15 Integrate.AI

*Details on Business Overview, Platforms & Solutions, Key Insights, Recent Developments, SWOT Analysis, MnM View Might Not Be Captured in Case of Unlisted Companies.

10 Appendix (Page No. - 99)
     10.1 Industry Excerpts
     10.2 Discussion Guide
     10.3 Knowledge Store: MarketsandMarkets’ Subscription Portal
     10.4 Available Customizations
     10.5 Related Reports
     10.6 Author Details


List of Tables (28 Tables)

Table 1 United States Dollar Exchange Rate, 2016–2018
Table 2 Factor Analysis
Table 3 Global AI Governance Market Size and Growth Rate, 2019–2025 (USD Million and Y-O-Y %)
Table 4 AI Governance Market Size, By Component, 2019–2025 (USD Million)
Table 5 Solutions: Market Size, By Type, 2019–2025 (USD Million)
Table 6 Services: Market Size, By Type, 2019–2025 (USD Million)
Table 7 AI Governance Market Size, By Vertical, 2019–2025 (USD Million)
Table 8 AI Governance Market Size, By Region, 2019–2025 (USD Million)
Table 9 North America: Market Size, By Component, 2019–2025 (USD Thousand)
Table 10 North America: Market Size, By Solution, 2019–2025 (USD Thousand)
Table 11 North America: Market Size, By Service, 2019–2025 (USD Thousand)
Table 12 North America: Market Size, By Vertical, 2019–2025 (USD Thousand)
Table 13 North America: Market Size, By Country, 2019–2025 (USD Thousand)
Table 14 Europe: AI Governance Market Size, By Component, 2019–2025 (USD Thousand)
Table 15 Europe: Market Size, By Solution, 2019–2025 (USD Thousand)
Table 16 Europe: Market Size, By Service, 2019–2025 (USD Thousand)
Table 17 Europe: Market Size, By Vertical, 2019–2025 (USD Thousand)
Table 18 Europe: Market Size, By Country, 2019–2025 (USD Thousand)
Table 19 Asia Pacific: AI Governance Market Size, By Component, 2019–2025 (USD Thousand)
Table 20 Asia Pacific: Market Size, By Solution, 2019–2025 (USD Thousand)
Table 21 Asia Pacific: Market Size, By Service, 2019–2025 (USD Thousand)
Table 22 Asia Pacific: Market Size, By Vertical, 2019–2025 (USD Thousand)
Table 23 Asia Pacific: Market Size, By Country, 2019–2025 (USD Thousand)
Table 24 Rest of the World: AI Governance Market Size, By Component, 2019–2025 (USD Thousand)
Table 25 Rest of the World: Market Size, By Solution, 2019–2025 (USD Thousand)
Table 26 Rest of the World: Market Size, By Service, 2019–2025 (USD Thousand)
Table 27 Rest of the World: Market Size, By Vertical, 2019–2025 (USD Thousand)
Table 28 Rest of the World: Market Size, By Region, 2019–2025 (USD Thousand)

List of Figures (41 Figures)

Figure 1 Global AI Governance Market: Research Design
Figure 2 Top-Down and Bottom-Up Approaches
Figure 3 Solutions Segment to Account for A Larger Market Size in 2020
Figure 4 Platforms to Account for A Higher Market Share in 2020
Figure 5 Consulting Segment to Account for the Largest Market Size in 2020
Figure 6 Banking, Financial Services, and Insurance Vertical to Account for the Largest Market Size in 2020
Figure 7 Europe to Account for the Highest CAGR During the Forecast Period
Figure 8 Growing Government Initiatives to Drive the AI Governance Market
Figure 9 Automotive Vertical to Grow at the Fastest Rate During the Forecast Period
Figure 10 Banking, Financial Services, and Insurance Vertical and North America to Account for the Highest Market Shares in the AI Governance Market in 2020
Figure 11 Banking, Financial Services, and Insurance Vertical to Register the Highest Market Share in 2020
Figure 12 Europe to Be the Best Region for Investments During the Forecast Period
Figure 13 Drivers, Restraints, Opportunities, and Challenges: AI Governance Market
Figure 14 Services Segment to Grow at A Higher CAGR During the Forecast Period
Figure 15 Software Tools Segment to Grow at A Higher CAGR During the Forecast Period
Figure 16 Integration Segment to Grow at the Highest CAGR During the Forecast Period
Figure 17 Region-Wise Adoption of AI Governance Across Various Verticals By 2025
Figure 18 Automotive Vertical to Register the Highest CAGR During the Forecast Period
Figure 19 North America to Hold the Largest Market Size During the Forecast Period
Figure 20 Germany to Hold the Highest CAGR During the Forecast Period
Figure 21 Europe to Register the Highest Growth Rate During the Forecast Period
Figure 22 North America: Market Snapshot
Figure 23 Automotive Vertical to Grow at the Highest CAGR During the Forecast Period
Figure 24 Europe: Market Snapshot
Figure 25 Automotive Vertical to Grow at the Highest CAGR During the Forecast Period
Figure 26 Asia Pacific: Market Snapshot
Figure 27 Automotive Vertical to Grow at the Highest CAGR During the Forecast Period
Figure 28 Automotive Vertical to Grow at the Highest CAGR During the Forecast Period
Figure 29 IBM: Company Snapshot
Figure 30 IBM: SWOT Analysis
Figure 31 Google: Company Snapshot
Figure 32 Google: SWOT Analysis
Figure 33 Microsoft: Company Snapshot
Figure 34 Microsoft: SWOT Analysis
Figure 35 Facebook: Company Snapshot
Figure 36 Facebook: SWOT Analysis
Figure 37 SAP: Company Snapshot
Figure 38 SAP: SWOT Analysis
Figure 39 Salesforce.Com: Company Snapshot
Figure 40 Fico: Company Snapshot
Figure 41 AWS: Company Snapshot

The study involved 4 major activities in estimating the current market size for the AI governance market. Exhaustive secondary research was done to collect information on the market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain using primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakup and data triangulation procedures were used to estimate the market size of the segments and subsegments of the market.

Secondary Research

In the secondary research process, various secondary sources, such as D&B Hoovers, Bloomberg BusinessWeek, and Factiva, have been referred to, to identify and collect information for this study. These secondary sources included annual reports; press releases; and investor presentations of companies, whitepapers, certified publications, and articles by recognized authors; gold standard and silver standard websites, regulatory bodies, trade directories, and databases.

Primary Research

The AI governance market comprises several stakeholders, such as AI governance vendors, cloud solution providers, system integrators, professional service providers, resellers and distributors, research organizations, government agencies, enterprise users, venture capitalists, private equity firms, and startup companies. The demand side of the market consists of enterprises from different verticals, such as telecom, healthcare and life sciences, government and defense, Banking Financial Services and Insurance (BFSI), automotive, retail, media and entertainment, and others (education, travel and transportation, manufacturing, and energy and utilities). The supply side includes AI governance providers, offering AI governance solutions and services. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakup of the primary respondents:

AI Governance Market

To know about the assumptions considered for the study, download the pdf brochure

AI Governance Market Size Estimation

Both top-down and bottom-up approaches were used to estimate and validate the total size of the market. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:

  • The key players in the industry and markets were identified through extensive secondary research.
  • The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
  • All percentage shares, splits, and breakups were determined using secondary sources and verified through primary sources.

Data Triangulation

After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. The data triangulation and market breakup procedures were employed wherever applicable, to complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Various factors impacting the AI governance market, such as recent developments, regulations, technology maturity, research and development, Information Technology (IT) spending, cloud deployment, mergers and acquisitions, and partnerships were considered in the study.

Report Objectives

  • To define, describe, and forecast the AI governance market by component, solution, service, vertical, and region
  • To provide detailed information regarding the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
  • To analyze micromarkets with respect to individual growth trends, prospects, and their contribution to the total market
  • To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
  • To forecast the size of the market segments with respect to main regions, namely, North America, Europe, Asia Pacific (APAC), and Rest of the World (RoW)
  • To profile the key players in the market and comprehensively analyze their market share and core competencies
  • To track and analyze competitive developments, such as new product launches, mergers and acquisitions, partnerships, agreements, and collaborations in the market

Available Customizations

Along with the market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:

Product analysis

  • Product matrix gives a detailed comparison of the product portfolio of each company

Geographic Analysis

  • Further breakup of the North American AI governance market into countries
  • Further breakup of the European market into countries
  • Further breakup of the APAC market into countries
  • Further breakup of the Row market into countries

Company Information

  • Detailed analysis and profiling of additional market players

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Report Code
TC 7355
Published ON
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