What Has Been the Growth of the Artificial Intelligence As A Service AIaaS Market So Far?
The artificial intelligence as a service aiaas market has seen considerable growth due to a variety of factors.
• In recent times, the market size of Artificial Intelligence as a Service (AIaaS) has seen significant expansion. It's projected to swell from $14.44 billion in 2024, hitting $20 billion in 2025 at a compound annual growth rate (CAGR) of 38.5%.
The historical period's growth can be traced back to the escalating demand for AI-powered solutions across different industries, advancements in deep learning technologies and machine learning algorithms, rising uptake of big data analytics and cloud computing, the necessity for affordable and scalable AI solutions, and the proliferation of IoT and connected devices creating an enormous amount of data. The expansion of AI implementations in several sectors such as healthcare, retail, finance, and more, and emphasis on process optimization and automation is also contributing to this growth.
What Is the Forecasted Market Size and Growth Rate for The Artificial Intelligence As A Service AIaaS Market Size In The Coming Years?
The artificial intelligence as a service aiaas market is expected to maintain its strong growth trajectory in upcoming years.
• The market for artificial intelligence as a service (AIaaS) is projected to experience a substantial surge in the coming years. It's set to expand to $74.96 billion by 2029, with a compound annual growth rate (CAGR) of 39.1%.
This future growth can be credited to the evolution of AI-powered virtual assistants and chatbots, the accessibility of AI platforms and tools from leading cloud service vendors, the amalgamation of AI with edge computing for instant decision-making, the need for bespoke client experiences and forecasting analytics, governmental projects pushing AI applications and investigation, increased investments in AI startups and innovation centers, heightened cognizance about AI's capability in business modernization, and the requirement for AI knowledge and skill within organizations. The forecast period also envisions major trends like improvements in AI technology, predictive and analytics measures, enhancements in cloud computing infrastructure and technology, and forthcoming machine translation advancements.
What Factors Are Driving Growth In The Artificial Intelligence As A Service AIaaS Market?
The increasing reliance on artificial intelligence by businesses is anticipated to drive the expansion of the AI as a service (AIaaS) market. AI in business context signifies the usage of intelligent computer software with capabilities similar to human intelligence which aims to amplify revenue, enhance customer experience, boost productivity and efficiency, and foster business growth and transformation. AIaaS functions in businesses by offering access to pre-constructed AI models and tools via the cloud, enabling businesses of all scales to harness the might of AI without the significant upfront investments and technical know-how needed for internal development. As an example, a study conducted by The International Business Machines Corporation, a technological corporation in the US, in May 2022 found that about 35-36% of global companies were already employing AI, and between 42% and 64% were probing into its potential. Moreover, 64% of businesses are of the opinion that AI is going to amplify business productivity, and 42% are confident it will simplify job processes. Thus, the surging dependency on AI by businesses is fueling the surge of the AI as a service (AIaaS) market.
What Are The Main Segments Of The Global Artificial Intelligence As A Service AIaaS Market?
The artificial intelligence as a service (AIaaS) market covered in this report is segmented –
1) By Type: Services, Software Solutions
2) By Cloud Type: Public Cloud, Hybrid Cloud, Private Cloud
3) By Technology: Natural Language Processing, Machine Learning, Computer Vision, Deep Learning, Other Technologies
4) By Enterprise Size: Large Enterprises, Small And Medium Enterprises
5) By Industry: IT And Telecom, Healthcare, Energy And Utility, Manufacturing, Retail, Government, Banking, Financial Services, And Insurance, Other Industries
Subsegments:
1) By Services: Machine Learning Services, Natural Language Processing Services, Data Analytics Services, Chatbot Development Services
2) By Software Solutions: AI Development Platforms, Predictive Analytics Tools, Computer Vision Applications, Speech Recognition Software
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What Emerging Trends Are Influencing The Growth Of The Artificial Intelligence As A Service AIaaS Market?
Leading players in the AI as a Service (AIaaS) marketplace are focusing on the development of high tech solutions such as generative AI to maintain their competitive stance. Generative AI, which is an AI system capable of creating new content like text or images from existing data, is being seen as the next big thing. An example of this is the launch of Einstein GPT by Salesforce, Inc., a US software company, in March 2023 - the pioneering generative AI for CRM. This robust tool couples public and private AI models with CRM data, facilitating users to create credible content out of their CRM data via natural language cues. The AI models can be fine-tuned to align with specific business requirements. Users can utilize Einstein GPT to link data with OpenAI's progressive AI models ready to use, or they can choose their own external model and use natural language cues within the Salesforce CRM to create dynamic content that adjusts to fluctuating customer data and preferences in real time.
Who Are the Key Players In The Artificial Intelligence As A Service AIaaS Market?
Major companies operating in the artificial intelligence as a service (AIaaS) market report are:
• Apple Inc.
• Google LLC
• Microsoft Corporation
• Dell Technologies Inc.
• Huawei Technologies Co. Ltd.
• Hitachi Ltd.
• Amazon Web Services Inc.
• Siemens AG
• Intel Corporation
• Accenture PLC
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Salesforce Inc.
• NVIDIA Corporation
• Fujitsu Ltd.
• Cognizant Technology Solutions Corp.
• ZTE Corporation
• Baidu Inc.
• Infosys Ltd.
• Super Micro Computer Inc.
• SAS Institute Inc.
• Arm Limited (SoftBank Group Corp.)
• Fair Isaac Company (FICO)
• DataRobot Inc.
• Cognitivescale Inc.
• Iris.AI
• BigML Inc.
• Atomwise Inc.
• craft.AI
What Is The Most Dominant Region In The Artificial Intelligence As A Service AIaaS Market?
North America was the largest region in the artificial intelligence as a service (AIaaS) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence as a service (AIaaS) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
