The market for AI-driven policy and governance agents is expected to grow from $1.93 billion in 2024 to $10.31 billion by 2029, according to The Business Research Company. The projected compound annual growth rate of 39.8% reflects increasing AI adoption, data complexity and a mounting need for automated frameworks that deliver transparency and accountability.
This sharp trajectory mirrors a wider trend in both government and business, where AI is being deployed to address complex governance challenges. In the UK, around 15% of businesses have adopted AI technologies, according to OxLEP Business. As use accelerates, the infrastructure around AI deployment becomes more crucial—not just for operational efficiency, but also to democratise information access and support better decision-making.
Globally, regulatory pressure is a key growth driver. The European Union’s AI Act will enforce stringent controls on high-risk AI, particularly in sectors like healthcare and finance, in response to ethical concerns and algorithmic bias. Demand for AI governance solutions is expected to rise accordingly, helping organisations navigate evolving compliance requirements. Separate forecasts from MarketsandMarkets and Research and Markets suggest the AI governance segment could reach nearly $5.8 billion by 2029.
Technological shifts are also reshaping the sector. Blockchain integration for accountability and automated compliance monitoring is gaining momentum, improving both transparency and data integrity. Major players including Google, Microsoft and IBM are developing platforms that embed ethical safeguards and support robust risk management.
As organisations face reputational risks tied to biased AI outputs, there is a growing emphasis on governance systems that ensure fairness and reliability. Sectors such as finance, healthcare and energy are likely to lead adoption of AI-powered risk assessments and decision support tools.
With regulation tightening and innovation advancing, the market for AI policy agents is set for rapid expansion. In harnessing these tools, the UK has an opportunity to reinforce its leadership in responsible AI, fostering ethical standards and strengthening public trust.
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