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AI Governance Market Size - By Component (Solution [Platform, Software Tools], Services [Consulting, Integration, Support & Maintenance]), By Deployment Model (Cloud, On-premises), By Organization Size (Large Enterprise, SMEs), Application & Forecast, 2023 – 2032

  • Report ID: GMI6015
  • Published Date: Jun 2023
  • Report Format: PDF

AI Governance Industry Analysis

AI Governance Market size was valued at USD 119.7 million in 2022 and is anticipated to grow at a CAGR of 48% between 2023 and 2032.The proliferating interest in ethical hacking and penetration testing is driving the market for AI governance. The increasing awareness about the vulnerabilities and risks associated with digital systems among organizations is raising the demand for ethical hackers and penetration testers to identify & address these weaknesses.

AI Governance Market

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The focus on ethical hacking and penetration testing is propelled by the need to enhance cybersecurity and protect against malicious attacks. This has led to the growth of companies providing ethical hacking services, vulnerability assessments, and penetration testing solutions. The rising interest in these practices highlights the importance of ethical behavior in the digital realm, fueling the AI governance market growth.


With AI and IoT applications becoming more prevalent in various industries, concerns about the ethical implications of these technologies are growing. Ethical AI and IoT solutions are witnessing high demand due to increasing focus on principles such as transparency, fairness, accountability, and privacy. This drive to develop and implement ethical AI & IoT systems is fueling the AI governance market size with companies providing ethical AI & IoT services, consulting, and solutions.

The lack of trained & skilled professionals is hampering the market demand. The demand for ethical practices in the digital realm is increasing; however, there is a shortage of individuals with the necessary knowledge & expertise in areas such as cybersecurity, ethical AI, privacy, and data governance. Moreover, owing to the complexities and evolving nature of AI governance, there is a growing need for professionals who can effectively navigate these ethical challenges. The shortage of trained personnel also limits the ability of organizations to implement and maintain robust ethical practices.

COVID-19 Impact

Pandemic-induced lockdowns and restrictions have led to a surge in online activities including remote learning, telehealth, and virtual social interactions. This shift in online behavior has raised concerns about digital well-being, online safety, and responsible digital citizenship. The AI governance market for digital literacy and education, which is focused on promoting ethical online behavior and addressing digital divide issues, has gained prominence during the pandemic. This rapid adoption of digital technologies, such as cloud computing, AI, and IoT, has necessitated a greater focus on digital ethics. As organizations strive to implement these technologies ethically, there is an increased demand for ethical AI, responsible technology development, and digital ethics consulting services.

AI Governance Market Trends

Organizations are seeking guidance from AI ethics consulting firms and service providers to navigate the complexities of AI governance. These services encompass ethical AI strategy development, impact assessments, policy designing, and employee training to promote responsible AI practices. AI ethics consultants help organizations establish monitoring and evaluation mechanisms to ensure ongoing compliance with ethical AI practices. This includes setting up systems to track & assess AI system performance, identify potential biases or risks, and continuously improve ethical AI governance over time.

AI Governance Component Segmentation

Global AI Governance Market Size, By Component, 2021-2032, (USD Million)

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The AI governance market from solution segment is expected to register around 48% CAGR during the forecast period. AI governance solutions refer to software tools, platforms, and technologies designed to address the ethical, legal, and societal challenges associated with AI. These solutions encompass a range of functionalities such as bias detection & mitigation, privacy protection, model governance, and transparency. The demand for AI governance solutions is increasing as organizations recognize the need for robust frameworks to ensure ethical & responsible AI development and deployment.

AI Governance Application Segmentation

Global AI Governance Market Share, By Application, 2022

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AI governance market from government & defense segment is set to observe over 50% CAGR through 2032. This sector requires AI systems that are transparent, accountable, and adhere to ethical principles including ensuring fairness, mitigating biases, protecting privacy, and maintaining the integrity of AI systems. The demand for AI governance solutions and services in the government & defense sector is expected to grow as organizations prioritize responsible AI adoption and seek to address the unique ethical challenges specific to their domains.

AI Governance Regional Analysis

U.S. AI Governance Market Size, 2021-2032 ( USD Million)

North America AI governance market held more than 40% of revenue share in 2022 and will expand at 50% CAGR till 2032, due to the high prevalence of cybersecurity risks across the region. Incidents including data breaches, cyberattacks, and privacy violations have raised awareness about the ethical implications of digital technologies. Organizations are increasingly recognizing the need for responsible data handling, privacy protection, and accountable AI systems. This has created a high demand for cybersecurity solutions, privacy-enhancing technologies, ethical AI development, and consulting services in the field of digital ethics. As a result, the market for digital ethics has expanded to address the growing concerns and challenges posed by cybersecurity attacks in North America.

AI Governance Industry Leaders

Major companies operating in the AI governance market include Alphabet Inc., BigID, Capgemini, Deloitte, Everis, EY, Facebook Inc., IBM Corporation, KPMG, Looker, Maxwell IT, Microsoft Corporation, Oracle Corporation, PwC, SAP SE, SAS, Sovrin Foundation, and Stefanini.

AI Governance Industry News:

  • In April 2023, Amazon Web Services launched Amazon Bedrock, a new service that makes FMs from AI21 Labs, Anthropic, Stability AI, and Amazon available via an API. Bedrock makes it simple for clients to create and grow generative AI-based apps with FMs, providing access for all builders.

This AI governance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Component

  • Solution
  • Platform
  • Software tools 
  • Services
  • Consulting
  • Integration
  • Support & maintenance

Market, By Deployment Model

  • Cloud
  • On-premises

Market, By Organization Size

  • Large Enterprises
  • Small & Medium-sized Enterprises (SMEs)

Market, By Application

  • BFSI
  • Government & Defense
  • Healthcare & Life Science
  • Media & Entertainment
  • IT & Telecom
  • Automotive
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Singapore
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa


Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of AI governance hit more than USD 119.7 million in 2022 and is projected to grow at over 48% CAGR from 2023 to 2032, driven by the proliferating interest in ethical hacking and penetration testing.

The solution segment is expected to witness 48% CAGR during 2023 to 2032, owing to the increasing implementation of robust frameworks to ensure ethical & responsible AI development and deployment across organizations.

North America held more than 40% share of the global market in 2022 and is set to expand at over 50% CAGR through 2032, attributed to the increasing prevalence of cybersecurity risks.

Alphabet Inc., BigID, Capgemini, Deloitte, Everis, EY, Facebook Inc., IBM Corporation, KPMG, Looker, Maxwell IT, Microsoft Corporation, Oracle Corporation, PwC, SAP SE, SAS, Sovrin Foundation, and Stefanini are some of the leading enterprises in the market.

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 18
  • Tables & Figures: 304
  • Countries covered: 17
  • Pages: 200
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