Artificial Intelligence (AI) is the ability of a computer or a computer-operated system to carryout tasks commonly associated with humans. The technology has been around since the 1950s but has gained momentum in the 21st century owing to increased data volumes and improvements in computing power storage.
AI has applications in almost every sector and field, including gaming, healthcare, finance, data security, e-commerce, and governance. In this blog post, we look at how the AI in governance market is expanding and detail the key factors fueling the market’s growth. Read on!
Applications of AI in Governance
Below we’ve detailed some of the major applications of AI in governance:
Traffic flow analysis: Subsets of AI like computer vision and object detection offer data-driven analyses that can help government organizations manage traffic flow, monitor logistics and prevent congestion. This, in turn, can aid in improving the overall road safety.
Healthcare and disease spread prevention: AI has several applications in the healthcare sector, ranging from early disease diagnosis to clinical decision support. Governments can use AI to offer more effective healthcare services to their citizens.
Large-scale infrastructure monitoring: Several governments worldwide experience difficulty monitoring real estate. AI solutions developed by AI in governance market key players can be used by governments to automate property administration and monitoring to combat tax evasion and unlawful property changes.
Cyber attack prevention: Government agencies have all the critical public and defense data. And this makes them a target of all kinds of cyberattacks. AI in governance workflows helps agencies in preventing or minimizing cyberattacks.
Market Analysis and Growth Drivers
The AI in governance market was valued at USD 121.59 million in 2022 and is expected to grow at a CAGR of 44.4%, generating an estimated annual revenue of USD 4,797.50 million during the forecast period.
The need for AI governance solutions that can address AI systems’ societal, legal, and ethical implications has increased due to AI becoming prevalent across various industries. As a result, the market has seen the advent of numerous tools and platforms that facilitate AI governance practices. These tools enable transparency by providing users with an explanation of how the AI algorithms make decisions. Also, they help in ensuring fairness and enhancing accountability by offering insights into factors influencing AI outcomes.
Companies integrating AI governance into their risk management frameworks further drive the market for AI in governance. By adding AI governance into their risk management practices, companies can attenuate the potential risks of AI.
Solutions Segment Dominated the Market in 2022
The solutions segment accounted for the largest market share in 2022 and is expected to continue its dominance over the forecast period. The segment’s growth is primarily driven by the presence of diverse market competitors focusing on meeting rising consumer demand across several industry verticals by providing innovative and technologically advanced solutions.
An increase in the demand for AI governance solutions spurs the growth of services like software integration and education programs. The requirement for expert assistance in adopting AI governance solutions and adding them to existing infrastructure is expected to favorably impact the integration services segment. Furthermore, the development of educational training programs accentuates the sector’s commitment to increasing awareness regarding AI’s ethical implications and is likely to boost AI in governance market sales.
Recent Developments
In February 2023, Accenture announced its collaboration with Google Cloud. The partnership aims at providing customers with improved data organizations and access to key indicators within their supply chain.
To Sum It Up
In conclusion, the AI in governance market is anticipated to experience significant growth over the next few years. Government initiatives, backend process automation, and the adoption of robot advisors are some of the key factors that are driving the market’s growth.