Published Date : 05 Jun 2023
The global artificial intelligence as a service market size was evaluated at USD 6.3 billion in 2022 and is expected to rise to USD 155.31 billion by 2032, anticipated to grow at a CAGR of 37.78 percent throughout the projection period from 2023 to 2032.
Artificial intelligence as a service refers to commercially available AI solutions that let businesses expand and use AI methods for a fraction of the price of building a comprehensive in-house AI. Due to its reliance on cloud computing, the idea of "everything as a service" refers to any program that can be accessed through a network. The software is often a ready-to-use product. Even if it isn't completely tailored to your system, you buy it from a third-party seller, make a few adjustments, and start using it almost immediately. Companies are working hard to incorporate artificial intelligence (AI) technology into their applications, businesses, analytics, and services as a result of the growing number of firms and competition.
North America held the largest market share in artificial intelligence as a service market in 2022. The highest growth of the market is attributed to the habit of early adoption of technology. The region is considered the most advanced technology hub. It is the home of leading companies like Google, Amazon, IBM, Microsoft, etc., which are the leading companies that are investing in artificial intelligence research and development. North America carries a number of visionary scientists and institutes that are conducting research programs in artificial intelligence in the region. These factors may impact the growth of AI as a service market in the region.
Asia-Pacific is expected to increase its market share over the forecast period. The increase in the market is attributed to the growing number of artificial intelligence vendors providing insights for the development of the organization. The region is attracting global investors to invest in developing technological infrastructure in the nations like India, China, and Japan. The increasing use of artificial intelligence in the various organizations to improve service quality and productivity will likely boost the demand for artificial intelligence as a service market.
Artificial Intelligence As A Service Market Report Scope:
|Market Revenue in 2023
|USD 8.68 Billion
|Projected Forecast Revenue in 2032
|USD 155.31 Billion
|Growth Rate from 2023 to 2032
|CAGR of 37.78%
|North America Region Revenue Share In 2022
|2023 To 2032
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Unbiased and faster decision making offered by AIaaS
Artificial intelligence-based systems are capable of offering emotion-free and totally unbiased decisions to organizations without any human intervention. The systems also help in making practical and analyzed decisions as per the organizational profits. One of the main benefits of artificial intelligence is that it takes an unbiased decision and ensures accurate decision-making. By providing real-time insights and automating certain tasks artificial intelligence can make faster and more performed decisions. The artificial intelligence decision can be made quickly and accurately and minimize errors and save money and lives. Considering the benefits offered by AIaaS for enterprises, their adoption is observed to be increased in the upcoming years.
Higher operating costs
Artificial intelligence as a service takes high operating costs due to the continued needed services from their Alaas vendor. The organization ensures that artificial intelligence as a service outweighs the cost of developing the software of the artificial intelligence system first. And as organizations dive more into artificial intelligence and machine learning. This process can also cost more and tends to hire more trained staff as per requirement. This results in the higher operating cost of artificial intelligence as a service market.
Natural language processing developing technologies in the BFSI sector
Natural Language Processing (NLP) systems employ text and voice produced by computers. Many autonomous sectors are shifting their focus on utilizing NLP for declining the organizational communication obstacles. Along with the NLP, the rising use of AI-based systems as a service in BFSI sector highlights a bright future for the market for the upcoming years. Artificial intelligence-driven NLP technologies are capable of noticing unauthorized financial activities.
Lower transparency between the organization and Alaas vendors
As the number of end users utilizing artificial intelligence as a service increases, the risk associated with lower transparency is intended to act as a challenge for the market. Businesses that purchase artificial intelligence as a service from vendors are only able to use the service; they are not able to access the technology's internal workings. In other words, AIaaS is similar to a "black box," where firms may supply input and know the result but are unable to comprehend how the output is produced, what AI algorithms are employed, etc. Additionally, businesses are unable to determine how their data is utilized to produce results or how safe it is. The firm and the AIaaS vendor may get misled or misunderstood as a result.
Major Key Players:
By Service Type
By Organization Size
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