Artificial Intelligence as a Service (AIaaS) Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The artificial intelligence as a service (AIaaS) market size has grown exponentially in recent years. It will grow from $14.44 billion in 2024 to $20 billion in 2025 at a compound annual growth rate (CAGR) of 38.5%. The growth in the historic period can be attributed to increasing demand for ai-driven solutions across industries, advancements in machine learning algorithms and deep learning technologies, growing adoption of cloud computing and big data analytics, need for cost-effective and scalable ai solutions, rise of iot and connected devices generating massive data, expansion of ai applications in healthcare, finance, retail, and other sectors, emphasis on automation and process optimization.

The artificial intelligence as a service (AIaaS) market size is expected to see exponential growth in the next few years. It will grow to $74.96 billion in 2029 at a compound annual growth rate (CAGR) of 39.1%. The growth in the forecast period can be attributed to development of ai-powered virtual assistants and chatbots, availability of ai platforms and tools from major cloud service providers, integration of ai with edge computing for real-time decision-making, demand for personalized customer experiences and predictive analytics, government initiatives promoting ai adoption and research, increasing investment in ai startups and innovation hubs, growing awareness about the potential of ai in business transformation, need for ai expertise and talent in organizations. Major trends in the forecast period include advancements in ai technology, predictive and analytics solutions, advancements in cloud computing infrastructure, advancements in cloud computing technology, upcoming machine translation.

The anticipated increase in businesses' dependence on artificial intelligence (AI) is poised to drive the growth of the artificial intelligence as a service (AIaaS) market in the foreseeable future. AI in business denotes the utilization of intelligent computer software with human-such as capabilities to enhance revenue, improve customer experience, boost productivity and efficiency, and propel business growth and transformation. Artificial intelligence as a service (AIaaS) enables businesses to access pre-built AI models and tools via the cloud, empowering entities of varying sizes to harness the potential of AI without the substantial upfront investments and technical expertise required for in-house development. As per a poll conducted by The International Business Machines Corporation in May 2022, involving 7,502 businesses, approximately 35-36% of global companies were already implementing AI, with 42-64% exploring its potential. Moreover, 64% of businesses believe that AI will enhance business productivity, and 42% anticipate streamlining job processes. Consequently, the mounting dependence of businesses on artificial intelligence is propelling the growth of the artificial intelligence as a service (AIaaS) market.

Prominent companies operating in the artificial intelligence as a service (AIaaS) market are strategically dedicating efforts to the development of advanced technological solutions, such as generative AI solutions, to secure a competitive advantage. Generative AI pertains to AI systems capable of generating new content, including text or images, by learning from existing data. For example, in March 2023, Salesforce, Inc., a US-based software company, unveiled Einstein GPT, the initial generative AI for CRM. This robust tool integrates public and private AI models with CRM data, allowing users to generate reliable content from their CRM data using natural language prompts. Customization is facilitated by fine-tuning the AI models to meet specific business requirements. Einstein GPT enables customers to connect data to OpenAI's state-of-the-art AI models right out of the box or select an external model, using natural language prompts directly within Salesforce CRM to generate content dynamically adjusting in real time to changing customer data and needs.

In January 2023, DNV, a Norway-based assurance and risk management company, completed the acquisition of Proxima Solutions for an undisclosed sum. The acquisition is intended to fortify DNV's green power monitor (GPM) business and broaden its array of asset-centric modules. Proxima Solutions, a Germany-based provider of AI-as-a-Service for aerospace through a cloud platform, aligns seamlessly with DNV's strategic objectives.

Major companies operating in the artificial intelligence as a service (AIaaS) market report are Apple Inc., Google LLC, Microsoft Corporation, Dell Technologies Inc., Huawei Technologies Co. Ltd., Hitachi Ltd., Amazon Web Services Inc., Siemens AG, Intel Corporation, Accenture PLC, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce Inc., NVIDIA Corporation, Fujitsu Ltd., Cognizant Technology Solutions Corp., ZTE Corporation, Baidu Inc., Infosys Ltd., Super Micro Computer Inc., SAS Institute Inc., Arm Limited (SoftBank Group Corp.), Fair Isaac Company (FICO), DataRobot Inc., Cognitivescale Inc., Iris.AI, BigML Inc., Atomwise Inc., craft.AI.

North America was the largest region in the artificial intelligence as a service (AIaaS) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence as a service (aiaas) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence as a service (AIaaS) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence as a service (AIaaS) market includes revenues earned by entities by providing custom cognitive computing APIs, conversational AI, and cognitive computing APIs. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The artificial intelligence as a service (AIaaS) market consists of sales of central processing units (CPUs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and tensor processing units (TPUs). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

Artificial Intelligence as a Service (AIaaS) is a technological paradigm that delivers AI services via the cloud, enabling businesses to access AI capabilities without the necessity of investing in expensive hardware or software. This approach empowers organizations with cost-effective, scalable, and flexible access to AI technologies and services.

The primary categories within Artificial Intelligence as a Service (AIaaS) encompass services and software solutions. Services refer to a set of interrelated activities, resources, and capabilities provided to users, systems, or entities to fulfill specific needs or requirements. Cloud deployment options include public cloud, hybrid cloud, and private cloud, incorporating various technologies such as natural language processing, machine learning, computer vision, and deep learning, among others. This technology finds application across diverse enterprise sizes, including large enterprises and small to medium enterprises, spanning industries such as IT and telecom, healthcare, energy and utility, manufacturing, retail, government, banking, financial services, insurance, and others.

The artificial intelligence as a service (AIaaS) market research report is one of a series of new reports that provides artificial intelligence as a service (AIaaS) market statistics, including artificial intelligence as a service (AIaaS) industry global market size, regional shares, competitors with a artificial intelligence as a service (AIaaS) market share, detailed artificial intelligence as a service (AIaaS) market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence as a service (AIaaS) industry. This artificial intelligence as a service (AIaaS) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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