According to a report by Global Market Insights, Inc.. “The global AI as a Service market will be valued at $6 billion in 2022 and will exceed $75 billion in revenue by 2032, with an annual growth rate of 25% from 2023 to 2032.”
Increased data availability and advances in cloud computing are cited as key drivers for the industry. The explosion of data and the rise of cloud computing are stimulating AI models as companies generate large amounts of high-quality data to train effectively. Cloud computing platforms provide the necessary infrastructure to store, process, and analyze this data, making it easier for AIaaS providers to deliver their services at scale. Moreover, its easy integration with existing systems has facilitated the adoption of AI in various industries, contributing to the growth of the market.
The AI as a Service market in the large enterprise segment accounted for a large revenue share in 2022. This is because demand for AI services fluctuates based on these organizations’ business cycles, seasonal fluctuations, or specific projects. AI as a service offers scalability and flexibility, allowing organizations to tailor their use of AI based on their needs. Moreover, large enterprises can save cost and effort by offloading the burden of AI development, deployment and maintenance to specialized providers.
The AI as a Service market in the private cloud segment will see significant growth from 2023 to 2032 due to increased control and customization of AI solutions. Private cloud services allow businesses to tailor AI models and algorithms to their specific needs, ensuring compliance and security of sensitive information. Additionally, organizations can deploy AI services closer to their data sources, reducing latency and ensuring optimal performance.
The AI as a Service market in Asia Pacific is projected to experience significant growth by 2032. Countries such as China, Japan, South Korea, and Singapore are investing heavily in AI R&D, pursuing digital transformation efforts across various sectors such as healthcare, finance, manufacturing, and medicine. retail. This transformation will provide intelligent solutions for automation, data analysis, customer engagement, and personalized service, and will drive regional market development in the coming years.
Major companies operating in the AI as a Service market include Alphabet Inc. (Google LLC), Alibaba.Com, Amazon Web Services, Inc., CognitiveScale, Inc., Baidu, Craft.AI, IBM Corporation, DATAIKU SAS , Intel Corporation, Oracle Corporation, Microsoft Corporation, Salesforce.com Inc., and SAP SE. These companies are working on various product diversification strategies and strategic partnerships to gain an edge in the industry.
In March 2023, IT services company Oracle Corporation partnered with Nvidia to roll out new AI technology. A new cloud computing service based on Oracle’s chips and software products is intended to help Nvidia expand its line of AI-generated chips.
In March 2023, Chinese IT giant Baidu launched an AI bot in response to ChatGPT by Open.AI. The ERNIE Bot service will help the company stay at the forefront in the AI services market and gain a competitive edge in the country.
