AI governance market to grow 30% annually, Forrester report says

The rapid growth and adoption of artificial intelligence across industries is driving substantial investment in governance solutions to ensure responsible AI deployment and regulatory compliance.

Market trajectory and scope: The global commercial AI governance software market is expected to grow significantly through 2030, with projected spending reaching $15.8 billion and representing 7% of total AI software expenditure.

• Market analysts predict a compound annual growth rate (CAGR) of 30% from 2024 to 2030
• The expansion reflects growing organizational needs to maintain AI system integrity while meeting regulatory requirements
• Current governance solutions encompass multiple areas including model oversight, data management, privacy protection, and cybersecurity

Key growth drivers: Three primary factors are fueling the increased investment in AI governance software solutions.

• The widespread adoption of generative AI across industries necessitates robust governance frameworks to ensure model accuracy and minimize bias
• Emerging global regulations, including the EU’s Artificial Intelligence Act and FTC oversight, require organizations to demonstrate AI transparency and fairness
• Stakeholder pressure for responsible AI implementation demands greater visibility into system operations and performance metrics

Industry evolution: The AI governance landscape is undergoing significant transformation to meet emerging challenges.

• Existing governance and risk management solutions are converging toward unified platforms that provide comprehensive oversight
• These integrated systems aim to balance visibility, management, trust, and compliance requirements
• Organizations are increasingly seeking solutions that can address both current and emerging AI-related risks

Strategic implications: The substantial growth in AI governance software spending signals a fundamental shift in how organizations approach AI implementation and risk management.

• The integration of governance solutions into core business operations suggests AI deployment is moving beyond experimental phases into mission-critical applications
• The market’s rapid expansion indicates that organizations view governance not as optional but as essential for sustainable AI adoption
• The convergence of various governance tools points to a maturing market that prioritizes comprehensive risk management over point solutions