The global Artificial Intelligence (AI) as a Service Market size was around USD 4.5 billion in 2021 and is expected to reach USD 92.1 billion by 2030, expanding at a CAGR of around 39.12% during the forecast period, 2022 to 2030. The growth of the market is attributed to the growing adoption of cloud-based solutions and big data services by enterprises.
Artificial Intelligence as a Service or AIaaS is an AI solution or service offered by third-party technology platforms to organizations or individual customers for various business operation purposes. Artificial Intelligence (AI) technology solutions enable computer systems to handle human-brain-like functions on data such as reasoning, analyzing, learning, and taking cues from past data records.
AI capabilities offered by AIaaS minimize or eliminate human efforts to facilitate automation in an organization. The several advanced data preparation tools and features provided by AIaaS help in quickly and accurately processing big data operations. Companies in every sector are focused on enhancing productivity and by using AIaaS service it is easy to improve overall organizational productivity with minimum investment cost.
Manual data operations or monitoring operations take extra time and resources, which is not always possible for companies, owing to the highly competitive market. Customers have plenty of options available in this digital era, which is why it is important for companies to bring a higher level of competence in their operations to quickly and efficiently serve customers.
The advanced technological solutions offered by AIaaS at a minimal cost can fit the operational requirements of different types of enterprises. Artificial intelligence as a service is rapidly getting adapted across global organizations to speed up operations and serve customers in real-time. AI features such as chatbots are highly efficient in responding to consumers instantly. The AI chatbots can provide responses based on the specific details provided by the customer, which makes it possible for customers to get their queries solved without having to wait unnecessarily.
Furthermore, enterprises across the world are relying on artificial intelligence for making cloud-based operations efficient. The cloud learning enabled by AIaaS enables companies to save energy and time while gaining maximum results with minimum investment. SMEs and large enterprises can run various experimental operations with the help of AIaaS.
The cloud-based AIaaS are highly demanded in the market, as they can be quickly deployed and save energy & space. The revenue growth opportunities provided by cloud-based AIaaS are several, which are expected to boost the global Artificial Intelligence (AI) as a Service Market during the forecast period. However, data governance is a critical requirement for companies in sectors such as healthcare and BFSI, which could limit these companies from leveraging the benefits of AIaaS.
The market report finds that the COVID-19 pandemic helped significantly boost the global Artificial Intelligence (AI) as a Service Market, as the demand for digital solutions grew rapidly across worldwide organizations. The lockdown and other movement restrictions imposed by governments across the world for curbing the spread of infection resulted in companies taking their operations to digital mediums.
The time to digitize the operations was limited, due to which many companies chose cloud-based solutions provided by third-party platforms. Smart cloud-based solutions such as platform as a service (PaaS), software as a service (SaaS), and AI as a service helped companies rapidly digitize their operations. The technological features offered by cloud-based platforms solutions and services enabled companies to serve consumers efficiently during the pandemic time, allowing businesses to keep the revenue meter rotating.
The increased digitization across the global sectors is driving the growth of the global Artificial Intelligence (AI) as a Service Market post-pandemic. Several sectors including healthcare, travel, hospitality, e-commerce, and manufacturing are highly dependent on AIaaS solutions to speed up their operations as well as quickly address consumer demands.
Artificial Intelligence (AI) as a Service Market Dynamics
The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global Artificial Intelligence (AI) as a Service Market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.
Major Trends
The demand for advanced technological solutions such as artificial intelligence, machine learning, computer vision, and deep learning is rising across industries. As the implementation of AI solutions is on the rise, the demand for AI microservices is increasing among companies to meet specific requirements in operations.
The AI microservices, deliver tailored AI solutions to the companies based on specific business needs. The AI microservices are highly beneficial as they enable flexibility in design, help in speeding up AI features, reduce complexities to ease the decision-making process, and facilitate rapid digitization. The AI microservices are designed to address specific business problems, which makes the business process highly optimized.
Key Drivers
he automation trend is rising across the worldwide business sectors, which is expected to drive the global Artificial Intelligence (AI) as a Service Market in the coming years. Artificial intelligence solutions are capable of taking decisions by performing several processes on data. The process can be done on real-time generated data as well, which means automation solutions can work on real-time operations too.
The real-time response can be implemented using AIaaS solutions, which can understand the query and then perform the pre-programmed actions. Artificial intelligence provides the ability for companies to program several automation in their everyday operations. The automation process enables companies to be highly efficient, productive, and ultimately profitable. Automation is helpful in eliminating errors and reducing the time required for performing an action.
Artificial intelligence solutions help companies to effectively respond to several customers’ queries at one go, which is expected to drive the global Artificial Intelligence (AI) as a Service Market in the coming years. The customer experience can be enhanced with the help of AIaaS features such as chatbots, which is another application of artificial intelligence (AI) in education.
Moreover, customers have several options to instantly let companies know if they are satisfied with the service or product they have received. As the competition is rising across the globe among businesses, it is important for enterprises to ensure the customer is satisfied with the provided solutions. Companies employ AIaaS chatbots, dynamic feedback forms, or pop-ups to respond to customers’ queries as well as to get to know their feedback instantly.
Existing Restraints
The lack of skilled and experienced professionals is anticipated to affect the global Artificial Intelligence (AI) as a Service Market during the projected period. The artificial intelligence field is relatively new in the business arena. The rising digitization enabled AIaaS to emerge considerably. However, the skill development or experience required to fully benefit from the AIaaS solution is expected to take time and effort.
The practical learning, training, and certifications program provided by the AIaaS platforms is expected to help the growth of skilled professionals in the field, helping to reduce the talent gap in the global market during the forecast period.
Emerging Opportunities
The key players in the global Artificial Intelligence (AI) as a Service Market, are increasing their investment in the research & development process, which is expected to create significant market growth opportunities. Companies from different sectors are partnering with AIaaS providers to come up with smart and innovative solutions, that can enhance operations in several industries including healthcare, manufacturing, BFSI, retails, and e-commerce. Innovative solutions such as telemedicine, logistics automation, smart delivery, and company-specific chatbots among others are being invented with the help of AIaaS.
Scope of Artificial Intelligence (AI) as a Service Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Artificial Intelligence (AI) as a Service Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2021
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Historic Data
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2019–2020
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Forecast Period
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2022–2030
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Segmentation
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Type (Services and Software Solutions), Technology (Natural Language Processing, Machine Learning, Computer Vision, Deep Learning, and Others), Industry (IT & Telecom, Healthcare, Energy & Utility, Manufacturing, Retail, Government, BFSI & Others), and Enterprise Size (Large Enterprises, and Small & Medium Enterprises)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Amazon Web Services, Inc.; SAP SE; Intel Corporation; FICO; Apple Inc; Salesforce, Inc.; Google LLC; CognitiveScale; Microsoft; IBM Corporation; Baidu, Inc.; SAS Institute Inc.; Atomwise, Inc.; BigML, Inc; Automation Anywhere, Inc.; Advanced Micro Devices, Inc.; AiCure.; Arm Limited; Clarifai, Inc.; Sensely, Inc.; Enlitic, Inc.; H2O.ai; Hyperverge; Iris.ai AS.; and NVIDIA Corporation.
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Artificial Intelligence (AI) as a Service Market Segment Insights
On the basis of type, the global Artificial Intelligence (AI) as a Service Market is bifurcated into services and software solutions. The software solutions segment is expected to expand at a significant rate during the forecast period. The segment growth is attributed to the rising importance of software AI tools in finding hidden data patterns from large data volumes.
As the data generated from the customers and day-to-day operations is highly helpful for companies in optimizing processes, improving product quality, and minimizing costs. Different sectors, such as manufacturing, healthcare, BFSI, and life sciences are implementing software solutions in AIaaS to identify the hidden patterns in data. Furthermore, the software solutions aid in framing different business strategies and making complex business decisions within a limited time.
The services segment is anticipated to grow rapidly as well, owing to the rising use of third-party artificial intelligence services such as chatbots and dynamic APIs for the improvement of the customer experience. Additionally, with the help of outsourced services, it is possible for enterprises to rapidly develop and deploy solutions. The time, resources, and cost-saving advantages provided by the AIaaS platforms are boosting the segment further.
In terms of technology, the global market is categorized into natural language processing, machine learning, computer vision, deep learning, and others. The deep learning segment held a major revenue share of around 35% in 2021 and is projected to grow at a considerable CAGR during the forecast period. Deep learning technology is a part of data science, which also includes predictive modeling and statistics.
Deep learning imitates human brain patterns to gain certain knowledge about the object. The segment growth in the global market is due to rising demand for artificial intelligence solutions to work on multifaceted applications, data patterns, emotion detection, and understanding complex text & speech.
With the assistance of deep learning, businesses can simplify complex and big data volumes, due to which enterprises are expected to invest in the adaption of the technology during the forecast period.
The machine learning segment is also expected to grow rapidly in the coming years, owing to the increasing demand for machine learning technology in industries such as healthcare, manufacturing, transportation, and finance. Machine learning is one of the major parts of computer science and artificial intelligence. The machine learning algorithms analyze data to automate analytical model building.
The machine learning models are based on the concept of learning from data and identifying patterns to make decisions, with no human intervention needed. Machine learning capabilities are expected to play a major role in industry 4.0 automation in the coming years.
Based on the industry, the global Artificial Intelligence (AI) as a Service market is categorized into IT & telecom, healthcare, energy & utility, manufacturing, retail, government, BFSI & others. The BFSI segment is anticipated to grow at a significant pace in the coming years, due to the high adoption of AI solutions in the industry to boost operational efficiency and enhance customer experience.
The rapid development and innovation of AI solutions by the key players in the global market are facilitating segment growth at a rapid pace. Additionally, AI algorithms are majorly beneficial in detecting frauds and other security lapses in operations, which allows a flawless and smooth run of the processes in the sector.
IT & telecom segment is projected to hold a large market share in the coming years. The AIaaS solutions are beneficial in efficiently fulfilling the diverse business needs of the customers. The AIaaS models are highly supportive of emerging technologies such as Internet of Things solutions (IoT solutions), facial recognition, and big-data analysis. AI services and tools are becoming a major part of the IT industry to facilitate the rapid development of applications. The no-code development platforms and low-code development platforms are dependent on AI solutions to facilitate ease of understanding and use for the users.
Based on the enterprise size, the global Artificial Intelligence (AI) as a Service market is divided into large enterprises, and small & medium enterprises. The small & medium enterprise segment is projected to hold a large share of the market in the coming years, owing to the offering of advanced AI services and solutions at a minimal cost by the AIaaS platforms. The AIaaS solutions, enable SMEs to improve their productivity and efficiency without the need for a data scientists team. The low-cost AI systems provided by AIaaS platforms are expected to boost segment growth further in the coming years.
The large enterprise segment is anticipated to grow at a considerable CAGR during the forecast period, owing to the major use of AI services for improving customer experience by large-scale businesses in the sector. The AIaaS solutions are highly beneficial for large enterprises in making quality decisions faster based on consumer behavior patterns shown in AI data.
In terms of region, the global Artificial Intelligence (AI) as a Service Market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to dominate the market during the projection period, due to the rapid development of diverse AI-based solutions by the key players in the market. Additionally, the implementation of various artificial intelligence services and solutions in various sectors is growing rapidly in the region. The use case of the AIaaS platforms is expected to keep on rising with the emerging innovative solutions from the region, fueling the global market growth.
The market in Asia Pacific is the second major region that is expected to grow rapidly during the forecast period. The emerging economies in the region, including, China, India, and Japan are innovating different advanced technological solutions by partnering with the AIaaS platforms. Additionally, the growing adaptation of artificial intelligence, machine learning, IoT, deep learning, and machine vision technology by the SMEs of the region is expected to fuel the market growth in the region during the forecast period.
Segments
The global Artificial Intelligence (AI) as a Service market has been segmented on the basis of
Type
- Services
- Software Solutions
Technology
- Natural Language Processing
- Machine Learning
- Computer Vision
- Deep Learning
- Others
Industry
- IT & Telecom
- Healthcare
- Energy & Utility
- Manufacturing
- Retail
- Government
- BFSI
- Others
Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Amazon Web Services, Inc.
- SAP SE
- Intel Corporation
- FICO
- Apple Inc
- Salesforce, Inc.
- Google LLC
- CognitiveScale
- Microsoft
- IBM Corporation
- Baidu, Inc.
- SAS Institute Inc.
- Atomwise, Inc.
- BigML, Inc
- Automation Anywhere, Inc.
- Advanced Micro Devices, Inc.
- AiCure.
- Arm Limited
- Clarifai, Inc.
- Sensely, Inc.
- Enlitic, Inc.
- H2O.ai
- Hyperverge
- Iris.ai AS.
- NVIDIA Corporation
Competitive Landscape
Key players competing in the global Artificial Intelligence (AI) as a Service market are Amazon Web Services, Inc.; SAP SE; Intel Corporation; FICO; Apple Inc; Salesforce, Inc.; Google LLC; CognitiveScale; Microsoft; IBM Corporation; Baidu, Inc.; SAS Institute Inc.; Atomwise, Inc.; BigML, Inc; Automation Anywhere, Inc.; Advanced Micro Devices, Inc.; AiCure.; Arm Limited; Clarifai, Inc.; Sensely, Inc.; Enlitic, Inc.; H2O.ai; Hyperverge; Iris.ai AS.; and NVIDIA Corporation.
Some major companies have adopted various business development strategies including acquisitions, mergers, collaborations, partnerships, product launches, and production capacity expansion to expand their consumer base and enhance their market share.
- In May 2022, FICO, one of Mexico's leading analytics companies, launched FICO® Score 4 and FICO® Extended Score 4. The redeveloped models in partnership with Círculo de Crédito, are designed to incorporate the credit file entirely. The new models use advanced machine learning techniques to analyze consumer data to help lenders in Mexico to predict consumer credit risk. The FICO Score model’s first version was launched in Mexico by Círculo de Crédito in 2014.
- In Oct 2022, Google Cloud launched a series of new tools that will make it easier for enterprises to implement artificial intelligence (AI) into their business operations. The newly launched tools are the Translation Hub, Vertex AI vision, and OpenXLA. The OpenXLA Project is an open-source machine learning project. The other vendors in the global Artificial Intelligence (AI) as a Service Market such as NVIDIA Corporation, Intel Corporation, and AMD are expected to participate in the project.
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