Global Artificial Intelligence as a Service Market By Service Type (Software Tool, Services), By Technology (Machine Learning, Computer Visions), By Enterprise Size (Small & Medium Enterprise and Large Enterprise), and By Industry Vertical (BFSI, IT & Telecom, Public Sector), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Artificial Intelligence as a Service Market is valued at USD 9.1 Bn in 2023 and is expected to reach USD 168.2 Bn in 2032, with a CAGR of 39.6% from 2022 to 2032.

Artificial Intelligence as a Service (AIaaS) refers to the provision of artificial intelligence capabilities and resources as a cloud-based service. It allows organizations to access and utilize AI technologies without having to develop and maintain their own AI infrastructure.

AIaaS providers typically offer a range of AI services, including machine learning algorithms, natural language processing, computer vision, and predictive analytics. These services are made available through APIs (Application Programming Interfaces) that allow developers to integrate AI capabilities into their own applications and systems.

Note: Actual Numbers Might Vary In The Final Report

The AIaaS market has experienced significant growth in recent years, driven by the increasing demand for AI technologies across various industries. Organizations are recognizing the potential of AI to enhance business operations, improve customer experiences, and drive innovation.

The landscape of Artificial Intelligence as a Service (AIaaS) is poised for significant expansion by the year 2024, driven by its integration across diverse business functions. Deloitte’s research indicates a noteworthy trend, with over 70% of enterprises expected to have embraced AIaaS solutions for at least one aspect of their operations. This adoption underscores the increasing reliance on AI to streamline and enhance business processes.

In parallel, the realm of natural language processing (NLP) and conversational AI is forecasted to witness a substantial surge in utilization. IBM’s projections suggest a 50% increase in the deployment of AIaaS for these technologies across various industries from 2022 to 2024. This rise reflects the growing demand for sophisticated customer service solutions and enhanced user experiences.

Furthermore, predictive analytics and forecasting are areas experiencing a marked increase in interest regarding AIaaS adoption. According to SAS, approximately 55% of organizations are planning to integrate AIaaS solutions by the end of 2024 to leverage data for more informed decision-making and strategic planning. This reflects a broader trend towards data-driven business models and the quest for competitive advantage through insights derived from AI.

Google Cloud’s insights reveal an anticipated evolution in AIaaS platforms, with over 65% expected to offer pre-trained models and APIs specifically for computer vision and image recognition tasks by 2024. This development points to the expanding capabilities of AIaaS offerings, catering to the growing needs for automated image analysis and processing in various sectors.

Key Takeaways

• The AI as a Service Market is set to reach USD 168.2 billion by 2032, growing at a CAGR of 39.6% from 2023 to 2032.
• The software segment holds a 70% market share in 2022, crucial for handling large data volumes in various sectors.
• Fraud and anomaly detection in finance will jump by 45% from 2022 to 2024.
• AutoML and low-code/no-code tools will be used in 60% of AIaaS deployments by 2024.
• Personalization and recommendation engines will be adopted by 50% of organizations by the end of 2024.
• Integration with edge computing and IoT devices will be a feature in 70% of AIaaS platforms by 2024.
• Cybersecurity applications use in AIaaS is set to rise by 40% between 2022 and 2024.
• Explainable AI (XAI) and interpretable models will be involved in over 55% of AIaaS deployments by 2024.
• Supply chain optimization and logistics will be integrated by 45% of organizations into their AIaaS solutions by 2024.
• Advanced data management and data governance will be offered by 65% of AIaaS platforms by 2024.
• Content generation and creative tasks growth among media and entertainment companies is expected at 35% between 2022 and 2024.
• Cloud-native architectures and serverless computing will be involved in 60% of AIaaS deployments by 2024.
• Environmental monitoring and sustainability applications will be adopted by 40% of organizations by the end of 2024.
• Advanced privacy-preserving and federated learning capabilities will be featured in 70% of AIaaS platforms by 2024.
• Healthcare and biomedical applications adoption is set to increase by 30% between 2022 and 2024.
• Machine learning leads the market, ensuring continuous learning during disruptions, with computer vision and natural language processing showing growth potential.
• Large enterprises lead the market due to the adoption of AI-driven design tools, while SMEs show promise with advancing technology.
• BFSI dominates due to increased adoption of AI marketing applications, especially in fraud analysis and algorithm trading.

Service Analysis

Software Segment to Witness Significant Growth

By component, the global market is divided into software and services. The software segment will gain the largest market revenue share of 70% in 2022.  Software tools play an important role in forecast periods from large amounts of data by useful structure in specific data and other data sets. The various sectors such as Retail, healthcare, life sciences, and the BFSI are the businesses relating these tools with their current business schemes to examine huge volumes of developed data patterns.

The second segment, the services segment, is estimated to see good growth in the forecast period. Increasing approval of smart solutions is possible to fuel the request for AI-related services. These services use the skills of solutions that grow corporate operations.

Technology Analysis

Machine Learning Segment Dominated The Market During The Forecast Period (2023-2032)

By technology, the market has been led by the machine learning segment, which has carried the whole process of learning and teaching. This is mainly due to the incidence of the Covid-19 pandemic; when organizations are closed so as a result of there are strict lockdowns restriction carried out.

In order to carry the process of learning, machine learning is an option that helps to maintain the system carry without stopping. The adoption is a permanent system of learning in particular areas globally. The above segment is divided into computer image and natural language handling techniques, showing growth in the market.

By Enterprise Analysis

Large Enterprise Segment Dominates the Market

Based on the enterprise, the global AI as a service market is divided into SMEs and large enterprises. The large enterprise segment registers the highest market share revenue during the forecast period. Due to increasing customer demand and increasing globalization, large enterprises are adopting AI for design tools to meet customer demand. The SEMs segment is anticipated to hold the second-largest market revenue share during the forecast period due to the rapidly increasing globalization and technological advancements.

Note: Actual Numbers Might Vary In The Final Report

By Industry Vertical Analysis

The BFSI Segment Dominated the Highest Market Growth

Based on end-users, the global AI as a service market is divided into BFSI, IT & Telecom, Public Sector, Manufacturing, Retail, Healthcare, Energy & Utility, and Other segments. The BFSI segment will dominate the market revenue share of 25% in 2022. The increasing adoption of AI marketing applications has propelled the growth of this segment. It is used in algorithm trading and mainly in the banking sector, which analyses fraud in financial services. A good assessment delivered by artificial intelligence basically helps to maintain the business in a standard format.

Key Market Segments

By Service Type

• Software Tools
• Services

By Technology

• Machine Learning
• Computer Vision
• Natural Language Processing
• Other Technologies

By Enterprise Size

• Small & Medium Enterprise
• Large Enterprise

By Industry Vertical

• BFSI
• IT & Telecom
• Public Sector
• Manufacturing
• Retail
• Healthcare
• Energy & Utility
• Other Industry Verticals

Drivers

Cloud-Based Solutions in AI Services Drive the Market Growth 

A large amount of data is organized by the AI, so this helps to maintain standard records and get the data when necessary. The use of cloud computing solutions is provided advantages such as a low amount of cost associated and also better dependability. The use of cloud computing in AI as a service also shows advantages to the organization as it removes the employment of the maintenance teams for IT.

The growing demand for the services presented by various dealers in the form of payment. These payments help in the case of cost associates as the payment is made dependent on the use of the company. The above factors are anticipated to grow the market value for artificial intelligence as a service market.

Restraints

Lacked Skilled Professionals

The lack of educational individuals who are not able to be aware of these tools will restrict the growth of the global AI for the graphic design market. The huge funding required for developing or using AI tools Various market players makes huge investments in installing new tools and advanced machines to raise the process and return cost increases.

Opportunity

Enhancing Creative Capabilities

AI is being used to produce generative art, which is a category of art that is generated through a set of rules or algorithms. This type of graphic art is unique and can be continuously changing. The AI-powered tool can significantly increase efficiency in graphic design procedures. This can save a lot of time and allow them to focus on more difficult creative tasks. One of the significant opportunities for using AI in graphic design is that it can automate repetitive tasks. This can benefit designers to create new and unique designs that stand out in a crowded market. One of the most significant opportunities generated by the AI industry is the ability to tackle more complex design projects.

Trends

Upcoming Machine Translation Trend Boost the Growth of Market

The use of AI as a service for human interface with machines using natural language processing is a key trend affecting the market. It is a type of AI that describes the human language and interaction of computers. Machine translation is a huge technology for NLP that allows us to connect people globally with the understanding of software manuals and specific catalogs written in different languages. For example, the app called Livox, a customized app, comes in 25 languages which helps disabled people to communicate with others, as AI technology access to more powerful tools and abilities. Additionally, recent trends such as retro visual content and animation in web designing are positively propelled the market growth.

Regional Analysis

North American region Accounted Significant Share of the Global AI as a Service Market

North America accounted for a significant AI as a service market revenue share of revenue 42%. Due to the presence of prominent and larger design organizations. and investment in novel marketing strategies. The increasing e-commerce industry is the major factor that propels the growth of the North American region.  The Asia-Pacific is anticipated to hold the second-largest region in the market during the forecast period. The rising need for communicating with the target audience designs that business purpose to survive in the market.

Note: Actual Numbers Might Vary In The Final Report

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Key market players use strategies such as collaborations, mergers & acquisitions, and partnerships to maintain their position in the market. Various prominent major companies in the ai for graphic design market industry include Google LLC, Inmahine Lab Pte Ltd, Fronty, Inc., Enhance, Inc., AKQA Inc., Studio Dumbar, Microsoft, and other key players.

Market Key Players

• Amazon Web Services, Inc.
• Microsoft
• SAP SE
• International Business Machines Corporation
• Fair Isaac Corporation
• Salesforce, Inc.
• Intel Corporation
• BigML, Inc.
• Google
• Siemens
• Other Key Players

Recent Development

• February 2023: Google launched Bard, an experimental conversational AI service, powered by LaMDA.
• July 2023: Databricks acquired MosaicML, a company specializing in efficient large language models, to expand its AI platform for building and deploying generative AI models
• In 2023: Salesforce launched Einstein GPT, the first generative AI for CRM, designed to help craft marketing emails, write articles, and even code.
• In 2023: Amazon acquired Snackable.AI, a company specializing in audio-focused AI, to enhance user features for podcasts on Amazon Music.

Report Scope