The global commercial AI software governance market is poised for exceptional growth. Forrester forecasts that by 2030, spending on off-the-shelf AI governance software will more than quadruple, reaching $15.8 billion and capturing 7% of overall AI software spending. This trend reflects the urgency for organizations to manage AI’s integrity amid rapid AI adoption and increasing regulatory demands.
Here are the top three drivers behind this investment surge in the emerging market of AI governance software:
- Rapid adoption of generative AI (genAI). Businesses across industries are rapidly evaluating and adopting genAI. As genAI continues to integrate into core business operations, companies are investing in governance solutions to maintain model accuracy, reduce bias, and ensure responsible use.
- Intensifying global regulations. As regulations like the EU’s Artificial Intelligence Act and US regulatory bodies such as the FTC enforce new and existing AI laws, enterprises are looking to address stringent standards for AI transparency, fairness, and security. These regulations compel organizations to adopt governance tools that help meet compliance requirements and provide the ability to respond to investigative requests.
- Demand for responsible and trusted AI. Organizations are under pressure from stakeholders to demonstrate AI’s reliability and accountability. AI governance solutions provide the needed observability and transparency, addressing concerns over data quality, model performance, and ethical risks — critical for maintaining trust, building AI value, and avoiding potential business risk.
With these drivers in play, existing and emerging governance and risk solutions for models, AI, data, privacy, and cybersecurity will increasingly consolidate into a unified cockpit that balances visibility, management, trust, and compliance. Enterprises will invest in these solutions to navigate the complexity of known, changing, and new risks from AI. For more details on the trends and evolution of the AI governance software market, read Forrester’s report, Global Commercial AI Software Governance Market Forecast, 2024 To 2030.
Source link
lol
