Artificial Intelligence as a Service Market Size, Share, Trends, Growth Report 2032

Artificial Intelligence as a Service Market Size

The global Artificial Intelligence as a Service market size was worth around USD 7.90 billion in 2023 and is predicted to grow to around USD 56.87 billion by 2032 with a compound annual growth rate (CAGR) of roughly 24.64% between 2024 and 2032.

The report covers forecast and analysis for the artificial intelligence as a service market on a global and regional level. The study provides historic data of 2018 to 2022 along with a forecast from 2024 to 2032 based on revenue (USD Billion).

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Artificial Intelligence as a Service Market: Overview

Artificial Intelligence as a Service (AIaaS) is a third party offering artificial intelligence outsourcing. This service helps customers to take the advantage of artificial intelligence without investing much in this technology and in future if the need really surpasses they can go for further investment. Even the companies without data science department can take the advantage of AI for data-driven business decisions. The risk factor is very low in AIaaS which encourages several users to adapt AI. The instant rise of data from several applications such as the Internet of Things (IoT) and demand for real-time decision making has catered the growth of this market to a great extent. AI is incorporated with a large number of algorithms that have increased the pace for solving particular tasks by a computer. Incorporation of Big Data in AI can identify trends and use that information for solving world level climate and other major problems.

However, AI can also be misused in criminal activities such as hacking, phishing scams, and preparing more destructive weapons, which have uplifted the threat of economic and political exploitation in the future. Several technical giants such as Google, Amazon, IBM, BigML, and Microsoft are finding their way in escalating their economic growth by AIaaS. Some cloud AI service providers offer specialized hardware required for few AI tasks, such as Graphics Processing Unit (GPU) based processing for intensive workloads, etc. Some of the common AI platforms used for social media campaigns are Rocco, Conversocial, Insightpool, and Sysomos. Chatbots that use AI for conversation are Botsify, Botsociety, Brainbot, Flowxo, Pandorabots, and others. In the marketing field, CRM platforms that use AI for improving customer’s experience are Persado, Tact AI, Cluster, People AI, and others. 

The study includes drivers and restraints for the artificial intelligence as a service market along with the impact they have on the demand over the forecast period. Additionally, the report includes the study of opportunities available in the artificial intelligence as a service market on a global level.

This report offers comprehensive coverage on global artificial intelligence as a service market along with, market trends, drivers, and restraints of the artificial intelligence as a service market. This report includes a detailed competitive scenario and the product portfolio of key vendors. To understand the competitive landscape in the market, an analysis of Porter’s Five Forces model for the artificial intelligence as a service market has also been included. The study encompasses a market attractiveness analysis, wherein all segments are benchmarked based on their market size, growth rate, and general attractiveness. This report is prepared using data sourced from in-house databases, secondary and primary research team of industry experts.

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Artificial Intelligence as a Service Market: Growth Drivers

Growing number of innovative startups and demand for AI-powered services in the form of API and SDK are uplifting the growth of artificial intelligence as a service market. AIaaS as an emerging new trend has a wide application from a future perspective in the field of automated transportation, cyborg technology, offering dangerous jobs, medical advancements. However, lack of skilled labor and sensitivity involved with the security of data is restricting the market growth. AI is an innovative field where new algorithms and proposals are regularly published. Additionally, the service providers and users are increasing for AIaaS because of increasing need for intelligent business applications and growing demand for AI service integrator is broadcasting a good market opportunity for players in the forecast years.

Artificial Intelligence as a Service Market: Segmentation

The study provides a decisive view on the artificial intelligence as a service market by segmenting the market based on service type, technology, verticals, and regions. All the segments have been analyzed based on present and future trends and the market is estimated from 2024 to 2032.

Based on services type, the market is bifurcated into software tools, and services which include data storage and archiving, cloud and web-based Application Programming Interface (APIs), managed services, professional services. 

By technology, the artificial intelligence as a service market is segmented into Machine Learning (ML) & Deep Learning, and Natural Language Processing (NLP).

On basis of verticals, the market can be bifurcated into BFSI, healthcare & life sciences, retail, telecommunication, government & defense, and others.

Artificial Intelligence as a Service Market: Report Scope

Artificial Intelligence as a Service Market: Regional Analysis

The regional segmentation includes the current and forecast demand for North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America and Europe have the large market size for AIaaS due to technological advancements, the rise of digital technologies, and need for intelligent business processes. AI service providers are focusing more towards development and innovation in the AI technologies that can be provided as a service. Asia Pacific region is expected to be the fastest growing region for this market because of large industrial growth and emerging need for intelligent and fast technology with growing awareness of AI is flourishing the demand of artificial intelligence as a service market. Additionally, the rapid growth in the digital industry in the Asia Pacific region has projected it as the high potential market for growth in future.

Artificial Intelligence as a Service Market: Competitive Analysis

The report covers detailed competitive outlook including the market share and company profiles of some of the key participants operating in the global artificial intelligence as a service market include:

• IBM Corp.
• Google
• Amazon Web services
• Microsoft
• Salesforce
• FICO
• Baidu
• SAS Institute
• BigMLl
• IRIS Al
• Intel
• SAP
• Rainbird Technologies
• Cognitive Scale

The report segments global artificial intelligence as a service market as follows:

Global Artificial Intelligence as a Service Market: Service-Type segment Analysis

• Software Tools
• Services

Global Artificial Intelligence as a Service Market: Technology Segment Analysis

• Machine Learning (ML) & Deep Learning
• Natural Language Processing (NLP)

Global Artificial Intelligence as a Service Market: Vertical Segment Analysis

• Banking, Financial, & Insurance (BFSI)
• Healthcare and Life Sciences
• Retail
• Telecommunications
• Government and defense
• Manufacturing
• Energy
• Others

Global Artificial Intelligence as a Service Market: Regional Segment Analysis

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• Middle East and Africa