AI governance, or the process of defining guidelines to guide AI development, is a rapidly growing market opportunity. A report from StrategyR underscores this, predicting that AI governance software and services could be worth $ 402 million in 2026, up from $ 49.3 million in 2020. “Amid the crisis of COVID19, the global AI governance market [has grown significantly], “StrategyR wrote in a press release. “The report presents fresh perspectives on opportunities and challenges in a significantly transformed post-COVID-19 marketplace.”
AI governance adoption
The pandemic forced companies to rethink models for managing AI risk, but many face persistent challenges. According to a Deloitte analysis, 38% of companies lacked or had an inadequate governance structure for handling data and in March, according to a Deloitte analysis AI models. The Pegasystems survey predicts that if the current trend continues, the lack of accountability in the private sector will lead governments to take responsibility for regulating AI for the next five years. Last year, the University of California, Berkeley Center for Long-Term Cybersecurity published a report postulating that AI governance has gone through three phases since 2016. The first phase was marked by the publication of ethical principles by tech companies and governments, followed by consensus on issues such as privacy, human control, explainability and fairness. The third stage, which began in 2019 puts principles into practice.
Responsible AI practices, including governance, can add significant business value to bear. A study by Capgemini found that customers and employees reward organizations that practice ethical AI with increased loyalty, more business, and even a willingness to defend them. This being the case, not all organizations have gotten onboard. In a recent KPMG report, 94% of IT decision makers said they believe companies should be more ethical and responsible when developing their AI solutions. Analysts like StrategyR are betting that new laws like the European Union’s algorithm framework and “AI registries” in Amsterdam, Helsinki and other cities will stimulate businesses to act and accelerate the demand for AI governance solutions that will drive adoption of Best Facilitate governance practices.
“In jurisdictions worldwide, new policy initiatives and regulations concerning the governance of data and AI signal the end of self-regulation and the rise of new oversight,” researchers at KPMG wrote in the aforementioned report. “ wrote KPMG researchers in the aforementioned report. “As the regulatory environment evolves at the traditional pace, leading companies are proactively addressing AI ethics and governance rather than waiting for requirements to be placed on them.”
