Global Human-Centered Ai Market - 2025-2033

Global Human-Centered AI Market reached US$ 10.50 billion in 2024 and is expected to reach US$ 42.82 billion by 2032, growing with a CAGR of 19.21% during the forecast period 2025-2032.

The global human-centered AI market is growing rapidly, fueled by increased government focus on ethical, transparent, and user-friendly AI systems. In 2024, the US federal government allocated over US$ 1.9 billion to AI research and development, emphasizing responsible and trustworthy AI applications. Additionally, more than 59 AI-related regulations and guidelines were introduced across federal and state agencies in 2024, highlighting efforts to establish robust AI governance frameworks. This growth is supported by initiatives such as the National Institute of Standards and Technology (NIST) developing AI standards focused on fairness, transparency, and accountability.

Human-Centered AI Market Trend

A key trend in human-centered AI is the prioritization of human values and ethical considerations across sectors like healthcare, education, and public services. Governments are increasingly using human-centered AI to improve accessibility and inclusivity in public programs, aligning AI design with societal needs. For example, the OECD’s 2024 report on government innovation emphasizes the use of AI to enhance citizen engagement and adapt services to diverse populations. This reflects a growing commitment worldwide to create AI systems that are transparent, fair, and built with a strong focus on human welfare and societal impact.

Market Dynamics

Increasing Demand for Ethical and Transparent AI Systems

The increasing demand for ethical and transparent AI systems is significantly driving the human-centered AI market, with notable momentum propelled by government initiatives. In fiscal year 2024, federal agencies requested around US$ 1.9 billion for AI research and development, emphasizing safety, accountability, and ethical alignment in AI applications. The Biden-Harris Administration’s 2023 Executive Order directed agencies such as the Department of Commerce and Department of Defense to implement over 100 specific actions focused on managing AI safety, security, equity, civil rights, and consumer protection.

The National Telecommunications and Information Administration (NTIA) released comprehensive accountability and transparency standards in March 2024, urging federal agencies to disclose AI system architecture, training data, performance limitations, and third-party audit capabilities Reflecting industry response, Microsoft published its first annual Responsible AI Transparency Report in July 2023, detailing more than 100 rollout features, 30 responsible AI tools, and 33 Transparency Notes to ensure accountability across its generative AI platforms.

Lack of Standardized Regulatory Frameworks

The lack of standardized regulatory frameworks continues to restrain the human-centered AI market, creating uncertainty for developers and deployers across North America and Europe. In 2024, at least 45 US states, Puerto Rico, Washington D.C., and the Virgin Islands introduced AI legislation, while 31 jurisdictions enacted or adopted laws related to algorithmic transparency and fairness. This creates a patchwork of state-level requirements, increasing compliance complexity for vendors operating across multiple regions. Meanwhile, the EU’s landmark AI Act entered into force on August 1, 2024, introducing risk-based regulations for general-purpose and high-risk AI systems.

Compliance milestones spanning 2025 to 2027 demand robust internal governance and documentation. Although the National Institute of Standards and Technology (NIST) has released its ""Plan for Global Engagement on AI Standards"" and initiated pilot “Zero Drafts” for federated AI standards (July 26, 2024), adoption remains voluntary. The fragmented regulatory landscape—differing obligations and enforcement timelines—hampers scalability, raises legal risks, and slows investment in human-centered AI solutions.

Segment Analysis

The global human-centered AI market is segmented based on component, technology, deployment mode, application and region.

Services Segment Driving Human-Centered AI Market

The services segment is emerging as a crucial driver in the human-centered AI market, bolstered by extensive government funding and strategic initiatives. The National Science Foundation (NSF) invests over $700 million annually in AI research and services that focus on ethical frameworks, cognitive computing, and model explainability. Further advancing this, NSF has committed around US$ 500 million to the National AI Research Institutes, which prioritize the development of trustworthy, human-aligned AI systems designed to enhance collaboration and fairness.

Public sector organizations are increasingly turning to expert services for AI implementation. The US General Services Administration (GSA) has introduced comprehensive guides and support services to assist federal agencies in adopting human-centered AI tools. Similarly, the Department of Health and Human Services has called for AI service solutions tailored for patient-focused healthcare applications. Financial regulators are integrating AI into oversight functions, increasing the demand for compliance-driven AI consulting and managed services.

Geographical Penetration

North America Drives the Global Human-Centered AI Market

North America is witnessing strong demand for human-centered AI, driven by federal initiatives and public sector investment. The US government allocated over US$ 1.7 billion toward AI research and development in 2022, showing a sustained commitment to advancing ethical and transparent AI technologies. The Department of Energy has proposed developing AI infrastructure, including data centers, on public lands to support human-centric applications by 2027. These efforts reflect growing interest in AI that enhances usability, trust, and human interaction.

Additionally, the National Institute of Standards and Technology (NIST) is leading the development of technical standards for trustworthy AI systems that prioritize fairness, transparency, and explainability. Demand is also growing in sectors like healthcare, education, and defense, where AI must align closely with human values and decision-making. Policies promoting responsible AI use and investments in low-latency, secure AI infrastructure further contribute to this trend. Together, these efforts highlight North America’s leadership in human-centered AI.

Technological Analysis

Technological advancements are significantly shaping the human-centered AI market, with a strong focus on making AI systems more explainable, ethical, and responsive to human needs. Innovations in natural language processing, computer vision, and emotion recognition are enabling AI to better interpret and react to human behaviors and emotions. Techniques such as federated learning and privacy-preserving AI are being adopted to ensure that user data remains secure while still enabling personalized experiences.

Edge AI is also being leveraged to deliver faster, real-time intelligence at the source, reducing latency and improving responsiveness. Additionally, the growing adoption of responsible AI frameworks is enabling developers to embed fairness, transparency, and accountability into their AI models. Government initiatives and funding programs worldwide are accelerating research in AI to ensure its alignment with societal values.

Competitive Landscape

The major global players in the market include IBM Corporation, Microsoft Corporation, Google LLC (Alphabet Inc.), Apple Inc., Amazon Web Services, Inc., Intel Corporation, NVIDIA Corporation, SAP SE, Oracle Corporation, and Siemens AG.

Key Developments

• In May 2025, Maxiom Labs, Inc. officially launched its revolutionary AI platform designed to optimize health, fitness, and performance—for committed athletes and everyday achievers alike. After months of development, billions of data sets, and reinforcement learning built exclusively on the most-cited, peer-reviewed science—and shaped by feedback from thousands of users—MAXIOM secured investment from Switzerland-based genetics firm DNAthlete, closed an oversubscribed $2M seed round led by Conscious Ventures, and opened its US$ 6M Series A.

• In May 2024, Tata Consultancy Services announced the creation of a Global Artificial Intelligence (AI) Center of Excellence in Paris, during the Choose France Summit, hosted by President Emmanuel Macron. The summit was attended by 300 global CEOs, including Mr. N. Chandrasekaran, the Chairman of Tata Sons.

Why Choose DataM?

• Data-Driven Insights: Dive into detailed analyses with granular insights such as pricing, market shares and value chain evaluations, enriched by interviews with industry leaders and disruptors.

• Post-Purchase Support and Expert Analyst Consultations: As a valued client, gain direct access to our expert analysts for personalized advice and strategic guidance, tailored to your specific needs and challenges.

• White Papers and Case Studies: Benefit quarterly from our in-depth studies related to your purchased titles, tailored to refine your operational and marketing strategies for maximum impact.

• Annual Updates on Purchased Reports: As an existing customer, enjoy the privilege of annual updates to your reports, ensuring you stay abreast of the latest market insights and technological advancements. Terms and conditions apply.

• Specialized Focus on Emerging Markets: DataM differentiates itself by delivering in-depth, specialized insights specifically for emerging markets, rather than offering generalized geographic overviews. This approach equips our clients with a nuanced understanding and actionable intelligence that are essential for navigating and succeeding in high-growth regions.

• Value of DataM Reports: Our reports offer specialized insights tailored to the latest trends and specific business inquiries. This personalized approach provides a deeper, strategic perspective, ensuring you receive the precise information necessary to make informed decisions. These insights complement and go beyond what is typically available in generic databases.

Target Audience 2024

• Manufacturers/ Buyers

• Industry Investors/Investment Bankers

• Research Professionals

• Emerging Companies