Dublin, April 12, 2021 (GLOBE NEWSWIRE) -- The "Global AI Governance Market by Component (Solutions (Platforms & Software Tools) and Services), Deployment Mode, Organization Size, Vertical (BFSI, Healthcare & Life Sciences, Government & Defense, and Automotive), and Region - Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The global AI governance market to grow from USD 50 million in 2020 to USD 1,016 million by 2026, at a Compound Annual Growth Rate (CAGR) of 65.5% during the forecast period.
Various factors such as increase in government initiatives to leverage the AI technology, rise in need for building trust in AI systems and growth in demand for transparency in AI decisions, and growth in regulatory compliances around the technology are expected to drive the adoption of the AI governance solutions and services.
Managing and monitoring credit, market, liquidity, and operational risk across financial markets was hard enough with ongoing geopolitical tensions, international trade wars, and the occasional hurricanes and earthquakes. The current pandemic situation has forced chief risk officers and their teams to recalibrate old assumptions and models used to manage and monitor risk.
COVID-19's global impact has shown that interconnectedness plays an important role in international cooperation and how outdated technologies are obstacles to effective policy-making. As a result, many governments started rushing towards identifying, evaluating, and procuring reliable solutions powered by AI.
Healthcare facilities globally have been turning toward AI systems to identify infections through people's voices or chest x-rays. Various governments have proposed tracking tools to monitor the virus' spread person-to-person. From Asia to Europe, several public sector entities have collaborated with the private sector to utilize AI-based services to monitor the spread of the virus.
COVID-19 has accelerated the need to operationalize Ethical AI principles. In order to help practitioners, navigate these challenges, the World Economic Forum's AI and ML platform created the Procurement in a Box package, which aims to unlock public sector adoption of AI through government procurement.
The solutions segment to have largest market size during the forecast period
The AI governance market has been segmented based on components into solutions and services. The solutions segment is divided into platforms and software tools. AI governance solutions provide an effective way for helping enterprises add AI governance capabilities into the existing architecture.
From automation to augmentation and beyond, AI is already changing how business gets done. Companies are using AI solutions to automate tasks such as fraud detection or vetting resumes and loan applications leading to the higher adoption of AI governance solutions. The services segment, on the other hand, has been bifurcated into integration, consulting, and support and maintenance services.
The on-premises segment to have the highest CAGR during the forecast period
By deployment mode, the AI governance market has been segmented into on-premises and cloud. The tools developed for on-premise deployment can work with mass amounts of compute power, which can be expensive in the cloud. Sometimes it becomes more economical for customers to do this on premises or prefer a capital expense to an operational expense model. This leads to the adoption of on-premises deployment mode.
Large enterprises segment to have the largest market size during the forecast period
The AI governance market has been segmented by organization size into large enterprises and SMEs. The market share of large enterprises is higher; however, the market for SMEs is expected to register a higher CAGR during the forecast period. The requirement to meet regulatory compliances, including data privacy needs and financial reporting, lead to the adoption of AI governance solutions in large enterprises.
Among regions, Europe to account for highest CAGR during the forecast period
North America is expected to hold the largest market size in the global AI governance market. In contrast, Europe is expected to grow at the highest CAGR during the forecast period. European Commission is taking various AI initiatives such as the Digital Services Act to create oversight for how internet platforms use AI. This is the major driving factor for the adoption of AI governance solutions in Europe.
Market Dynamics
Premium Insights
- Rise in Demand for Transparency in AI Decisions and Need to Build Trust in AI to Boost the Market Growth
- Healthcare and Lifesciences Verticals to Grow at the Highest CAGR During the Forecast Period
- North America to Hold the Highest Market Share in 2026
- Consulting Services Segment and BFSI Vertical to Account for the Largest Shares in North America in 2020
Drivers
- Increase in Government Initiatives to Leverage the AI Technology
- Rise in Need for Building Trust in AI Systems and Growth in Demand for Transparency in AI Decisions
- Growth in Regulatory Compliances Around the Technology
Restraints
- Establishment of Comprehensive Ethical Principles for AI
Opportunities
- Reduction in Gender Bias and Discrimination Through the Use of AI
Challenges
- Inadequate AI Expertise and Skills
- Clean and Relevant Data Required to Train ML Algorithms
Case Study Analysis
- Use Case 1: Fico Analytics Workbench Helps Banks to Improve Credit Risk Decisions
- Use Case 2: Darwinai Uses Openvino Toolkit to Deliver Explainable AI
- Use Case 3: Closedloop.AI Uses AI and ML to Help Users Identify and Predict High-Risk Populations
- Use Case 4: Financial Service Industry Use AI Solutions of Elula to Improve Its Customer Retention
- Use Case 5: Sparkcognition's AI Solution Helps to Predict Rare Failures in Hydro Turbines
Technology Analysis
- AI Governance and Machine Learning (ML)
- AI Governance and Deep Learning
- AI Governance and Local Interpretable Model-Agnostic Explanation (LIME)
Regulatory Implications
- General Data Protection Regulation
- Governance, Risk, and Compliance Standards
- Health Information Technology for Economic and Clinical Health
- Health Insurance Portability and Accountability Act
- Federal Trade Commission
- Federal Communications Commission
- Securities Financing Transactions Regulation
Companies Mentioned
- 2021.AI
- AnotherBrain
- Ataccama
- AWS
- ClosedLoop.ai
- DarwinAI
- Dataiku
- DataRobot
- Diveplane
- Elula
- Fair Isaac Corporation
- FICO Analytics
- Fiddler Labs
- Genie AI
- H2O.ai
- IBM
- Informatica
- Integrate.ai
- Kyndi
- Microsoft
- MindsDB
- Openvino
- Pymetrics
- Qlik
- Salesforce
- SAP
- SAS Institute
- Sparkcognition
- TIBCO Software
- Truera
- Untangle AI
- Zest AI
For more information about this report visit https://www.researchandmarkets.com/r/5b8a8f