The global artificial intelligence as a service market size is expected to reach USD 96,064.7 millionBy 2030, according to a new report from Grand View Research, Inc. The market is expected to expand at a CAGR of 37.1% from 2022 to 2030. Artificial intelligence as a service (AIaaS) is a third-party artificial intelligence outsourcing service that allows large enterprises and SMEs to explore development opportunities without significant initial investment. This enables businesses or end users to experiment with AI for various applications while limiting initial investment and risk.
Key industry insights and findings from the report:
- Adoption of artificial intelligence for workflow optimization and increased spending on technological improvements drive the demand for AI as a service.
- Increased use of cloud-based solutions and the need for artificial intelligence and cognitive computing drive the market expansion.
- Managing large amounts of data along with other business activities becomes a challenge for enterprises, creating demand for managed and commercial artificial intelligence (AI) services.
- Banks are using AI skills to detect and prevent fraud, chatbots and algorithmic trading objectives, enabling banking institutions to do their work better and increasing the use of AI services in BFSI business.
Artificial intelligence as a service market growth and trendIncreased AI R&D efforts by service vendors and governments across the country are driving the artificial intelligence-as-a-service market. Furthermore, more AIaaS integration with blockchain and increased investment in AIaaS by governments and end users is likely to drive the artificial intelligence-as-a-service market. For example, in July 2022, the United Nations Development Program (UNDP), a UN agency, and the Telangana government launched Data in Climate Resilient Agriculture (DiCRA), an AI-powered platform service focused on providing climate change information to farmers. The AI platform can identify farms that are robust to climate change and others that are vulnerable using pattern detection algorithms and remote sensing.
Furthermore, progressive enterprises are adopting artificial intelligence and other digital technologies to improve the overall work experience. Employees need fast support to stay productive with the shift to working from anywhere, whether they have an HR request, an IT issue, or a question about spending policy. Traditional service desks lack the speed and scale needed to provide a hybrid workforce with 24/7 support in real-time. To completely solve this problem, AI as service providers provide the help employees need within seconds. For example, in July 2022, MoveWorks, Inc., a United States-based artificial intelligence start-up, announced a collaboration with Tata Consultancy Services Limited. The partnership enables customers to improve their service desks with AI, and they can rely on the partner’s expertise and technology to automatically support their staff.
More companies are investing in AI technology and using AI skills to stay ahead of global competition. The growing use of social media and the Internet of Things (IoT) are driving the demand for AI technology. Furthermore, many AI technology vendors have found that providing AI tools and software is insufficient as many enterprises seek outsourcing services. As a result, the demand for AI services has increased in the market.