Artificial Intelligence as a Service Market

Market Synopsis:

The Global Artificial Intelligence as a Service Market was valued at USD 5.9 Billion in 2021 and is forecast to reach a value of USD 52.8 Billion by 2028. In the projection period, the Global Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 43.90% period.

The outsourcing of Artificial Intelligence (AI) is known as Artificial Intelligence as a Service (AIaaS). It enables individuals and organizations to investigate several options for various goals without requiring a significant initial outlay and posing a minimal risk. Most intelligent suppliers, whether software companies, consultants, or professional service providers, offer or collaborate with businesses that can provide a wide variety of comprehensive services to support a large-scale AI solution. Businesses providing AI-related services are unaware that giving clients AI software or toolkits is no longer adequate. The market for Artificial Intelligence as a Service is expanding at a rapid rate due to the widespread use of big data and cloud-based applications and services. The market for Artificial Intelligence as a Service is also anticipated to grow due to recent technological advancements, high demand for AI-Powered services, for instance, Application Programming Interface (API) and Software Development Kit (SDK), an increase in the number of creative startups, and significant investments in industrial automation. Additionally, the market for Artificial Intelligence as a Service would benefit significantly from the rising demand for intelligent business applications and the strong demand for AI service integrators.

On the other hand, the Artificial Intelligence as a Service business is constrained by a lack of skilled workers and a scarcity of qualified and experienced staff. In addition, its expansion will be hampered by the sensitive nature of data security issues.

Market Segmentation:

The Artificial Intelligence as a Service Market is segmented based on Technology, Verticals, and Region. Based on the Technology, the market is further segmented into Deep Learning, Machine Learning, and Natural Language Processing. In addition, based on the Verticals, the market is further bifurcated into Government, Banking, Financial Services & Insurance (BFSI), Healthcare, Manufacturing, Retail, and Telecommunication.

Based on Technology:

The Machine Learning (ML) category dominated the market in 2021. Machine Learning systems have automated every aspect of learning and teaching and have dominated the market. Machine Language (ML) has primarily been used since the pandemic when institutions were shut down due to stringent lockdowns and movement restrictions. Machine Learning was considered a way to continue the learning process, which helped keep the system functioning normally. In some industries around the world, this has now been implemented as a permanent method of education.

Based on Verticals

The Banking, Financial Services & Insurance (BFSI) category dominated the market in 2021 and is expected to dominate the Artificial Intelligence as a Service Market in the forecast period. The BFSI sector has frequently embraced AI technology to boost operational effectiveness and allow a rich user experience. AI leads all advancements, and that trend will not change. Chatbots, fraud detection, algorithmic trading, and client suggestions are the critical applications of AI. Chatbot use by banks like RBS is forcing other financial organizations to invest in similar competitive technology. It is expected that this would lead to a need for AI-based solutions, further leading the segments growth.

Asia Pacific is projected to grow at the highest CAGR during the forecast period

The Asia Pacific is expected to grow at a considerably high Compound Annual Growth Rate (CAGR) during the forecast period. Growing e-commerce, rising internet usage, and online streaming have expanded the marketing industries. As a result, Natural Language Processing (NLP) technologies are being adopted more widely. The top artificial intelligence innovators in the region are Japan, South Korea, and China. One of the key elements influencing the development and use of artificial intelligence in these nations is the significant investment made by China and South Korea in the development of automation technology for the industry. In addition, the Asia Pacific (APAC) is anticipated to be a high potential market due to the increasing awareness of Artificial Intelligence as a Service among many verticals and the generation of a vast amount of data due to the rise in the use of digital technologies.

Recent Developments:

• In March 2021, to improve customer experience, Infosys collaborated with LivePerson, Inc., a supplier of conversational cloud and AI solutions. The relationship through LivePerson Conversational Cloud and Infosys Cobalt enables organizations to manage conversations with customers and workers via websites, apps, and SMS.
• In February 2021, to provide data labeling as a service and artificial intelligence capabilities to GovCloud (United States) in the AWS marketplace for national security tasks, BAE Systems worked with Amazon Web Services (AWS).

Competitive Landscape:

The key players in the Global Artificial Intelligence as a Service Market include- IBM Corporation and others.

Segmentation of the Global Artificial Intelligence as a Service Market: