Global Artificial Intelligence As A Service Market

Artificial Intelligence As A Service Market Size, Share, Growth Analysis, By Service Type(Software and Services), By Deployment(Public Cloud and Hybrid Cloud) - Industry Forecast 2024-2031

Report ID: SQMIG45I2071 | Region: Global | Published Date: March, 2024
Pages: 197 | Tables: 59 | Figures: 78

Artificial Intelligence As A Service Market Dynamics

Artificial Intelligence As A Service Market Driver

  • Rising AIaaS adoption in the BFSI and healthcare industries

The banking, financial services, and insurance sectors all witness significant growth during the forecast period. The expanding digital revolution in banking and the increased use of mobile payments, e-banking, real-time money transfers, and mobile banking applications create massive amounts of customer data or transaction records. Financial institutions can manage this massive amount of data and use artificial intelligence to deliver a personalized customer experience. Similarly, AI enables financial institutions like banks to detect fraudulent transactions and anti-money laundering initiatives, which is expected to boost industry growth. Cloud-based AI services, including chatbots and voice bots, biometric fraud detection, digital payment advisors, smart wallets, and personal financial services, are expected to drive market growth during the forecast period.

  • Rise in Artificial Intelligence Dependence of Businesses

Due to the competitiveness of the business to provide the best possible service and experience, artificial intelligence has been quickly incorporated into the system. To manage large amounts of data without error, artificial intelligence has been integrated into the analytical activities of the organization. Artificial intelligence is seen as a way to increase an organization's revenue returns while reducing operational costs. This will allow small and medium-sized companies to expand significantly over the forecast period. Businesses use artificial intelligence in cloud learning to save time and resources and get the best results for the least money. Businesses can experiment with their products more effectively. The high demand for multi-cloud functionality and cloud-based intelligence that saves energy and space increases the revenue of the company.

Artificial Intelligence As A Service Market Restraint

  • Concerns about data privacy

AI-driven systems mine large amounts of data for future company planning and efficiency insights into operations. Concerns about data privacy are growing as powerful AI solutions are developed. AI raises data privacy concerns due to the tool's ability to make autonomous decisions and actions. Furthermore, corporations are using data anonymization strategies to prevent data breaches when using AI, in which they generalize important information about data points. In AIaaS such sensitive data is critical. As a result, it is difficult for organizations to ensure the privacy and confidentiality of data points and huge amounts of data.

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Artificial Intelligence As A Service Market size was valued at USD 8.08 billion in 2022 and is poised to grow from USD 11.97 billion in 2023 to USD 278.64 billion by 2031, growing at a CAGR of 48.2% in the forecast period (2024-2031).

artificial intelligence as a service market is highly competitive with the presence of local as well as companies. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of artificial intelligence as a service market. 'IBM', 'Microsoft', 'Google', 'Amazon Web Services (AWS)', 'Oracle', 'SAP', 'Intel', 'General Electric (GE)', 'Baidu', 'HPE', 'NVIDIA', 'Infosys', 'Cognitivescale', 'Wipro', 'Ayasdi', 'Freenome', 'Salesforce', '', 'CognitiveScale', 'Fractal Analytics', ' The University of Cambridge, Intel Corporation, and Dell Technologies announced in November 2023 the launch of "Dawn Phase 1," the fastest AI supercomputer that was co-designed. The supercomputer, which harnesses the combined power of artificial intelligence (AI) and high-performance computing (HPC) to address some of the most pressing issues, was constructed by elite technical teams. It is anticipated that this will hasten future technological leadership and foreign investment in the technology industry in the United Kingdom.   ', ' With the launch of the AMD Instinct MI300 Series accelerator family, which featured a first look at the AMD Instinct MI300X accelerator, AMD disclosed its AI Platform vision in June 2023. The accelerator is designed to support workloads in generative AI by training and inferring huge language models.   ', ' IBM revealed in June 2023 that The All England Lawn Tennis Club would be its partner during the 2023 Wimbledon Championship. During the competition, the business will use IBM Watsonx's generative AI technology to provide commentary for video highlights. Furthermore, the IBM AI Draw Analysis will provide information on how advantageous the draws would be for each singles player. '

Rising AIaaS adoption in the BFSI and healthcare industries

Cloud-based solutions are a key market trend driving the artificial intelligence-as-a-service (AIaaS) market growth. The growing acceptance of cloud computing services is increasing the popularity of cloud-based apps that can be used by a variety of end users. The benefits of cloud computing, such as low infrastructure computing costs, scalability, stability, and high resource availability, have forced organizations to adopt cloud-based solutions. Cloud computing reduces the need for dedicated IT support staff, reducing operating costs. Enterprises are implementing pay-per-use subscription services to reap maximum benefits. It will accelerate the adoption of cloud-based apps through service architecture.

On the basis of region, artificial intelligence as a service market is divided into North America, Europe, Asia Pacific and MEA. North America dominated the market, accounting for more than 40% of the revenue. This expansion can be driven by advancements in technology and the growing acceptance of digital technology. Also, AI solution providers are prioritizing innovation and the development of artificial intelligence technologies that can be provided as market services. Additionally, government measures promote the use of AI in various businesses as well as the presence of developing economies such as Canada and the United States. The sector is one of the most important cognitive computing markets with many large companies and IT infrastructure, government data security legislation, and cloud application and security information services all contributing to market growth.

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Global Artificial Intelligence As A Service Market

Product ID: SQMIG45I2071