Artificial intelligence as a service (AIaaS) is the provision of software, platforms, and analytical tools that are designed to help businesses rapidly deploy AI programs. An emerging industry with numerous disruptive applications, the market for AIaaS is expected to grow from $2.7 billion in 2016 to a mammoth $17.6 billion by 2021 in the United States alone. With enterprises now seeing the tangible benefits of AI, adoption rates are increasing at lightning speed. With so many advantages offered by artificial intelligence, it’s no wonder why companies across various industries are investing time and resources into optimizing their processes through this technology. According to Gartner Inc., some of the primary use cases for AI include customer experience optimization, digital assistant services such as Voice Over Internet Protocol (VoIP), chatbots and smart personal assistants as well as business process automation and industrial internet applications.
Artificial Intelligence Market – An Overview
Artificial intelligence is defined as ‘the science concerned with the simulation of human intelligence by machines.’ It is the next frontier for technology and has the potential to change our way of doing business forever. AI can be used to read big data, identify patterns, understand language, learn and predict behavior, and automate tasks. It promises to help businesses make better decisions and improve their operations. AI can be used to help brands personalize their messaging, predict consumer behavior, help retailers optimize inventory, and even solve some of society’s biggest problems. AI is already impacting industries like financial services, automotive, and healthcare. AI is already impacting industries like financial services, automotive, and healthcare. The next step is to have AI work with the rest of the organization to provide holistic value across the board. This is possible with the right combination of people, technology, and organizational culture. AI will only become more ingrained as the years go by. Businesses that invest now will be better positioned to take advantage of the next wave of transformation.
US Artificial Intelligence As A Service Market – Key Findings
The United States artificial intelligence as a service market is expected to grow from $2.7 billion in 2016 to a mammoth $17.6 billion by 2021. The market is projected to witness significant growth due to the increasing adoption of AI across various sectors and businesses. The major factor driving the growth of the market is the increasing demand for enterprises to optimize their processes by deploying AI-based solutions to improve their performance. Furthermore, advancements in technology such as advancements in computer vision and natural language processing are expected to fuel the demand for AI-based solutions. As the demand for AI-based solutions is rising, major vendors in the market are investing heavily in product development to offer end-to-end solutions that can be used to efficiently implement AI-based solutions. Furthermore, the adoption of cloud-based AI services is expected to significantly increase in the coming years, thereby fueling the demand for AI-based solutions.
Major Products in the United States AIaaS market
Cloud-based professional services – Cloud-based professional services are expected to represent the largest revenue opportunity for artificial intelligence as a service in the United States AIaaS market. These services include data analysis and planning, model management and deployment, cognitive model coaching, and model deployment. Cloud-based professional services are expected to account for the largest share of the artificial intelligence as a service market in the United States. Cloud computing platform and services – Cloud computing platforms and services are expected to experience the highest growth in the artificial intelligence as a service market in the U.S. The growth in artificial intelligence as a service market is mainly driven by the adoption of AI in the field of cyber security and healthcare. These services include big data storage and processing, image recognition, and natural language processing. End-to-end ecosystem services – End-to-end ecosystem services are expected to be the fastest growing service segment in the United States artificial intelligence as a service market. These services include artificial intelligence model testing and evaluation, model governance, and business insights and recommendation. End-to-end ecosystem services are expected to be highly adopted by AI vendors and the pay-for-use model is expected to be the key revenue model.
Key growth factors for the US AIaaS market
Government initiatives – The increasing investment by the government in the field of AI is expected to be one of the key drivers for the adoption of AI by enterprises and is also expected to create a demand for AI-based solutions. Furthermore, the growing adoption of blockchain technology is also expected to boost the demand for AI-based solutions. Rising use cases of AI – The growing use cases of AI are expected to drive the demand for AI-based solutions. The use cases such as artificial intelligence in healthcare, artificial intelligence in the field of cyber security, and artificial intelligence in the field of transportation infrastructure are expected to drive the demand for AI-based solutions. Advanced infrastructure – Growing adoption of AI in large enterprises and increasing investments by venture capital firms in the field of AI are expected to be the key growth factors for the artificial intelligence as a service market. Furthermore, the rising need for enhanced security in the field of AI is also expected to boost the demand for AI-based solutions. Advancement in technology – Major vendors in the market are investing heavily in product development to offer end-to-end solutions that can be used to implement AI. Furthermore, advancements in technology such as advancements in computer vision and natural language processing are expected to fuel the demand for AI-based solutions.
Key Challenges for the US AIaaS Market
Adoption of AI – The growing adoption of AI across various sectors and businesses is expected to generate a huge demand for AI-based solutions. However, the high cost associated with adopting AI-based solutions is expected to restrain the growth of the market. Limited adoption of AI in the field of big data storage and processing, image recognition, and natural language processing is expected to be the major challenge for the market. Cost of implementation – The high cost associated with the implementation of AI-based solutions is expected to restrict the growth of the market. Furthermore, the high risk associated with the implementation of AI-based solutions is expected to be the major challenge for the market. Rising demand for data – The rising demand for data for the implementation of AI solutions is expected to be a major challenge for the market. stringent regulations for data storage and processing are expected to be the major challenge for the market.
Bottom line
Artificial intelligence as a service is the provision of software, platforms, and analytical tools that are designed to help businesses rapidly deploy AI programs. The market for AIaaS is expected to grow from $2.7 billion in 2016 to a mammoth $17.6 billion by 2021. The United States is expected to account for the largest share of the market. AIaaS is an integral part of the growing artificial intelligence ecosystem, which is supported by increasing investments by major technology companies in the field.