Increasing Adoption of AI with Investment Globally Contributes Market Growth

Published: May 2024

Global AI as a service market is anticipated to grow at a significant CAGR of 17.7% during the forecast period (2024-2031). The market growth is attributed to the increasing demand for Machine Learning (ML) services in the form of software development kits (SDK) and application programming interfaces (API) with AI startup investment driving the growth of the market. According to the Organization for Economic Co-operation and Development (OECD), in May 2021, venture capital investment in AI technology increased 20-fold between 2012 and 2020. This scaling up of AI cuts through all sectors of the economy, including transport, healthcare, business, digital security, and others.

Browse the full report description of “AI as a Service Market Size, Share & Trends Analysis Report by Technology (Machine Learning, Natural Language Processing, Context Awareness, and Computer Vision), by Cloud Type (PublicCloud, HybridCloud, and PrivateCloud), by Offering (Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS), and by Vertical (BFSI, Healthcare and Life Sciences, Retail, IT & Telecommunication, Government and Defense, Manufacturing, Energy & Utility, Others)Forecast Period (2024-2031)” at https://www.omrglobal.com/industry-reports/ai-as-a-service-market

Developers may apply AI more easily to applications and business operations with the help of AI services, which include generative AI and prebuilt ML models. For instance, in July 2023, Avanade Inc. introduced new generative AI services to empower services to help clients. The Avanade AI organizational readiness framework provides a comprehensive assessment of an organization's business and IT areas. It offers detailed insights into AI readiness across people, processes, and technologies, enabling leaders to prioritize responsible actions for leveraging AI's benefits.

The BFSI industry uses AI mostly for chatbots, algorithmic trading, fraud detection, and client advice. Banks are experimenting with chatbots, and this is likely to encourage other financial institutions to make similar technology investments.For instance, in September 2023, Ernst & Young Global Ltd. launched the AI platform EY.ai following a $1.4billion investment. EY.ai is a unifying platform that brings together human capabilities and AI to help clients transform their businesses through the confident and responsible adoption of AI.

The goal of Advanced AI is to optimize technology's value for clients is also contributing towards market growth. This includes substantial R&D and financial investment to use generative and other innovative AI capabilities to reinvent service delivery. For instance, in June 2023, Accenture announced a $3.0 billion investment over three years in its Data & AI practice to help clients across all industries rapidly and responsibly advance and use AI to achieve greater growth, efficiency, and resilience.Accenture has embedded AI across its service delivery approach, driving efficiency, insights, and accelerating value for thousands of clients. 

Market Coverage

The market number available for – 2023-2031

Base year- 2023

Forecast period- 2024-2031

Segment Covered- 

o By Technology

o By Cloud Type

o By Offering

o By Vertical

Regions Covered-

o North America

o Europe

o Asia-Pacific

o Rest of the World

Competitive Landscape- Amazon Web Services, Inc., Google LLC, IBM Corp., Microsoft Corp., Nvidia Corp. among others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Global AI as a Service Market Report Segment

By Technology

  • Machine Learning
  • Natural Language Processing
  • Context Awareness
  • Computer Vision

By Cloud Type

  • Public Cloud
  • HybridCloud
  • PrivateCloud

By Offering

  • Infrastructure as a Service (SaaS)
  • Platform as a Service (PaaS)
  • Software as a Service (IaaS)

By Vertical

  • BFSI
  • Healthcare and Life Sciences
  • Retail
  • IT & Telecommunication
  • Government and defense
  • Manufacturing
  • Energy & Utility
  • Others (Automotive, Education, Agriculture)

Global AI as a Service Market Report Segment by Region

North America

United States

Canada

Europe

UK

Germany

Italy

Spain

France

Rest of Europe 

Asia-Pacific

China

India

Japan

South Korea

Rest of Asia-Pacific 

Rest of the World

Latin America 

Middle East & Africa


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