Artificial Intelligence as a Service Market - By Technology (Machine Learning, Computer Vision, Natural Language Processing, Others), By Cloud Type, By Enterprise Size, By Offering, By End User & Forecast, 2024 – 2032

Artificial Intelligence as a Service Market Size

Artificial Intelligence as a Service Market was valued at USD 9.7 billion in 2023 and is estimated to register a CAGR of over 33% between 2024 and 2032. Global AI as a Service Market will garner noteworthy gains throughout 2024-2032, driven by the escalating rollouts of industry-specific solutions. Providers of AI as a Service (AIaaS) are crafting specialized solutions designed to cater to the distinct requirements of specific industries, including healthcare, finance, retail, and manufacturing.
 

For instance, in June 2023, Hims & Hers Health, the prominent health and wellness platform, introduced MedMatch, an AI-driven solution aimed at transforming healthcare by equipping healthcare providers with a more intelligent and informed approach to delivering personalized care to patients. This innovative tool seeks to enhance the precision and effectiveness of treatments and medication recommendations. The primary objective of MedMatch is to provide healthcare professionals with clinical recommendations and treatment options that draw upon the vast collective knowledge of thousands of providers and millions of data points. Ultimately, this approach aims to yield improved clinical outcomes and higher levels of patient satisfaction. These specialized AI services can address specific challenges and opportunities within each industry, further driving adoption and innovation in the AIaaS industry.

However, integrating AIaaS solutions into existing infrastructure can be complex and time-consuming. Many organizations face challenges in seamlessly incorporating AI capabilities into their workflows and systems, which can act as a barrier to adoption, thus impacting the industry outlook.
 

Artificial Intelligence as a Service Market Trends

The integration of edge computing with AI as a Service (AIaaS) is poised to strengthen the AIaaS market forecast through 2032. By processing data at the edge of the network, closer to the data source, AI models can deliver real-time insights and responses, reducing latency and improving performance. This combination enables AIaaS to cater to applications requiring low-latency processing, such as IoT devices, autonomous vehicles, and industrial automation, ultimately broadening its applicability and driving greater adoption in various industries, thus complementing market growth. To that end, companies in the IT space are introducing novel cutting-edge products in the market to strengthen their market standing. For instance, in September 2023, Lenovo unveiled groundbreaking edge AI services and solutions, setting the stage for widespread deployment of remote computing capabilities that will greatly accelerate AI integration and enable new AI applications across industries.
 

With the introduction of Lenovo TruScale for Edge and AI, the proven cost-efficiency of the Lenovo TruScale Infrastructure-as-a-Service model is extended to its comprehensive edge portfolio. This empowers customers to adopt a pay-as-you-go approach for swift deployment of potent edge computing, facilitating real-time AI-driven insights at the data source. Additionally, Lenovo's expanded portfolio includes the powerful ThinkEdge SE455 V3, designed to support demanding remote AI workloads efficiently.
 

The proliferation of data, both structured and unstructured, has created a strong demand for AI-powered analytics. AIaaS solutions can process and analyze vast amounts of data quickly and efficiently, helping organizations gain valuable insights, make data-driven decisions, and enhance their operations.
 

Against this backdrop, in November 2023, Moody's Analytics introduced a novel stablecoin service, employing artificial intelligence to forecast potential depegging incidents within a 24-hour timeframe. This service will offer real-time insights into the liquidity and stability of stablecoin issuers. Using machine learning and various indicators, Moody's Analytics will analyze major stablecoins, identifying potential depegging risks. Additionally, the service will assess market dynamics, issuer stability, custodians, and reserve quality and provide a transparency index rating the disclosure quality of entities behind fiat-backed stablecoins.
 

Artificial Intelligence as a Service Market Analysis

Based on technology, the market is divided into machine learning (ML), computer vision, natural language processing (NLP), others. In 2023, the market revenue of the Machine Learning segment was over USD 3.3 billion. The AIaaS market share from the machine learning (ML) segment will register noteworthy expansion between 2023-2032 due to the ability of ML technology to process and analyze vast datasets, extract valuable insights, and improve decision-making processes. Organizations are increasingly leveraging AIaaS to harness the power of machine learning for a wide range of applications, from predictive analytics to natural language processing, as it enables them to derive actionable intelligence and drive innovation, efficiency, and competitiveness.
 

Based on offering, the market is categorized into infrastructure as a service, platform as a service, software as a service. In 2023, software as a service segment hold over 40% market share and is projected to grow significantly through 2032. Software as a Service (SaaS) offerings are gaining rapid adoption in the AI as a Service (AIaaS) market due to their convenience, scalability, and cost-effectiveness. AIaaS providers are increasingly offering SaaS-based solutions, allowing businesses to access and deploy AI capabilities without the need for extensive in-house infrastructure and expertise. This approach reduces upfront costs, accelerates time-to-market, and simplifies AI integration into existing workflows, making AI more accessible to a broader range of organizations and driving widespread adoption in the AIaaS market.
 

North America led the global artificial intelligence as a service market with a major share of over 32% in 2023. North America AI as a Service (AIaaS) industry will amass a notable market share by 2032. The region boasts a robust ecosystem of tech innovation and investment, including Silicon Valley in the United States and the thriving Canadian AI scene. Additionally, North American companies and institutions are driving AI research and development, such as Google's DeepMind, OpenAI, and prominent universities. Government initiatives, like the American AI Initiative, further support AI growth. The availability of skilled talent and a favorable regulatory environment contribute to North America's position as a global leader in AIaaS.
 

Artificial Intelligence as a Service Market Share

Major players operating in the artificial intelligence as a service industry are:

• Amazon Web Services, Inc.
• BigML, Inc.
• Fair Isaac Corporation
• Google LLC
• IBM Corporation
• Intel Corporation
• Microsoft
• Salesforce, Inc.
• SAP SE
• Siemens
   

Amazon Web Services, Inc. and Microsoft are dominating the artificial intelligence as a service business by holding over 10% share. Companies in this vertical are strengthening their presence through strategies like diversifying service offerings, forming strategic partnerships, investing in R&D for innovative solutions, and enhancing data security and compliance measures. These approaches help them expand their customer base and remain competitive in the rapidly evolving AIaaS market.
 

Artificial Intelligence as a Service Industry News

• In October 2023, IBM revealed its plans to strengthen its collaboration with Amazon Web Services (AWS) to better assist their shared clients in effectively implementing and benefiting from generative artificial intelligence (AI). As a significant part of this initiative, IBM Consulting intends to enhance and broaden its proficiency in generative AI on the AWS platform by training 10,000 consultants by the end of 2024. The two companies are also working on providing joint solutions and services integrated with generative AI capabilities aimed at assisting clients with various essential use cases.
   

The artificial intelligence as a service market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032, for the following segments:

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Market, By Technology

• Machine Learning (ML)
• Computer Vision
• Natural Language Processing (NLP)
• Others

Market, By Cloud Type

• Public Cloud
• Hybrid Cloud
• Private Cloud

Market, By Organization Size

• SMEs
• Large Enterprise

Market, By Offering

• Infrastructure as a service
• Platform as a service
• Software as a service

Market, By Industry Vertical

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

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa