The market is expected to grow at a CAGR of 28.73% during the forecast period 2021 - 2026. The continually increasing interest of government bodies to leverage artificial intelligence technology is emerging as a primary factor driving the market. Further, the growing demand for transparency in the decision-making process that use AI systems are propelling market growth.
- Transparency in criticial areas of application is expected to create deamnd for market studied. For instance, Communication Service Providers are increasingly AI systems to optimize 5G network operation. In case of any network outage , that can impact communications at national scale, undertaken through malicious exploit of the AI systems, the governemt is expected to demand for demonstration of appropriate controls for ensuring safe and correct operation of AI for network control.
- The expansion of the market has led to multiple partnerships to augment new research. Facebook in 2019, partnered with the Technical University of Munich to establish an independent AI ethics research center. Facebook funded TUM with USD 7.5 million for the same.
- The outbreak of the Covid - 19 pandemic is expected to create multiple opportunities for the AI Governance Market . AI is playing an active role in finding the vaccine for the virus. It also helping doctors in Florida and Israel in detecting Covid-19 systems. Moreover, it is to be increasingly used in the future for predicting outbreak of any such pandemics. This is expected to integrate the use of AI in public healthcare systems, thereby creating new avenues for development of ethical AI frameworks for their use.
Key Market Trends
Growing use of AI in Retail is Expected to Open Up New Avenues for Market Growth
- AI and ML are powerful technologies that are being increasingly deployed by retail firms. However, when the companies should deploy them with a comprehensive ethics plan in process. The development of a code of conduct is expected to create structures and accountability leading to good data-management practices facilitating the establishment of a framework that provides guidance for the entire company.
- Ethical AI interactions are increasingly driving consumer trust, satisfaction and decision making. According to the Capgemini Research Institute researchthe companies that are perceived to be ethically using AI and ML have a 44-point Net Promoter Score (NPS) advantage over those who are not.
- The reetailers across the globe are also preparing their workforce for deploying end to end Ai driven solutions. This is expected to create major opportunities for the market in the future. A major retailer recently set up a comprehensive training program to equip its 40,000 employees for its AI transformation.
North America is Expected to hold the Largest Share of the Market Studied
- The North American region is one of the early adopters of AI technology and hence is also expected to generate maximum opportunites for this market. For instance, the U.S. National AI R&D Plan has recommended the development of an AI R&D implementation framework that helps organizations across the country incorporate ethical considerations into the R&D, without compromising on public engagement, and how to market one's organization better
- Further, Autonomous transportation is one of emerging the areas in the automotive industry of the region where the AI governance solutions are expected to play a major role in the future. This has led to vendors like Alphabet to proactively create a global advisory council to consider ethical issues around artificial intelligence. This initiative has been undertaken in March 2019.
- The government in the United States is also proactively adoption measures for AI Governance. The governemnt announced the adoption of AI ethical principles in line with the Department of Defense AI strategy objective thereby facilitating the ethical and lawful use of Ai systems by the U.S. military and associated industries.
The competitive landscape of the market is consolidated with a few major players dominating the market. However, the proliferation in the use of AI and the growing need for ethical AI frameworks is expected to attract new players into the market. The recent developments of the amrket are as follows:-
- July 2019 - Google added new features to its What-If Tool that would enable users to use the tool for XGBoost and Scikit-learn model. These models have been deployed on the AI platform and the feature can be activated by using method call.
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