The Market for AI Governance and ISO 42001 Adoption

Overview:
- ISO/IEC 42001 is the world’s first international standard for AI management systems, marking a shift from reactive compliance to proactive governance across sectors.
- In 2025, companies are beginning to embed AI-specific controls, risk frameworks, and lifecycle audits to address ethics, security, and accountability.
- This report explores how governance maturity is evolving—highlighting market size, adoption gaps, regulatory catalysts, and competitive positioning.
Market Size & Growth
- The global AI governance market was valued at USD 197.9 million in 2024, with projections reaching USD 6.63 billion by 2034, driven by a 49.2% CAGR over the forecast period.
- Cloud deployment held 72% of AI governance market share in 2024 and is expected to grow at ~49.5% CAGR, showing strong preference for scalable models.
- In the UK, the AI assurance market (related to audits and certifications) has already surpassed £1 billion in value, highlighting demand for governance-aligned services.
Key Growth Drivers
- Regulatory alignment is accelerating interest in ISO 42001, especially in the EU, where upcoming enforcement of the AI Act in 2026 imposes penalties of up to €35 million or 7% of global turnover for noncompliance.
- Adoption of ISO 42001 is surging due to its breadth—covering 38 controls across 9 objectives, including data governance, lifecycle controls, and model auditability.
- Proactive organizations cite faster deployment and improved stakeholder trust as strategic benefits of early ISO 42001 adoption.
M&A Overview
- Brighthive became one of the first U.S. companies to earn ISO 42001 certification in July 2025, positioning itself for enterprise expansion and trust-based partnerships.
- The growing ecosystem of AI risk vendors is drawing investor interest, especially those that can offer integrated compliance solutions across ISO, NIST, and EU AI Act standards.
- UK’s push for standardized AI audit firms is expected to drive market consolidation and increase acquisition opportunities among boutique certification and assurance providers.
AI’s Role
- 93% of organizations are already using AI, but only 7% have embedded governance controls, highlighting a substantial governance gap.
- Only 4% of firms report being infrastructure-ready to scale trustworthy AI; 28% perform bias testing, and 22% assess interpretability.
- Organizations completing formal AI risk assessments rose to 72% in mid-2025, though only 36% currently have a formal AI policy.
Competitive Landscape
- ISO 42001 provides a clear competitive differentiator as firms race to preempt regulatory mandates; it is being adopted by manufacturers, fintech firms, and SaaS vendors alike.
- Enterprises are favoring vendors that can align with multiple standards, such as ISO 27001, ISO 42001, and NIST AI RMF, consolidating purchasing decisions around governance-ready platforms.
- The EU's alignment with ISO 42001 in their industrial and AI growth strategies positions certified players for preferential procurement and cross-border opportunities.
Sources: Global Market Insights, ITPro, El País, Financial Times, Cloud Security Alliance, TrustCloud, Vanta, Reuters