Artificial Intelligence as a Service (AIaaS) is the third party offering of artificial intelligence (AI) outsourcing. AI as a service allows individuals and companies to experiment with AI for various purposes, without large initial investment and with lower risk. Experimentation can allow the sampling of multiple public cloud platforms to test different machine learning algorithms. The global Artificial Intelligence As A Service Market is estimated to grow with 41.47% CAGR during the year 2019-2027. The base year considered for the study is 2018 and the estimated period is from 2019 to 2027. The growth of this market is driven by the factors mentioned below:

• Growing cloud computing market
• Barriers for developing artificial intelligence by own
• Unexplored markets for artificial intelligence

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The most important driver is the growing cloud computing market. The cloud technology can provide additional support with the required information for the learning processes to the AI, while AI can help cloud by providing information that can offer more data. AI is capable of streamlining the immense capacities of the cloud. It equips cloud technology with enormous powers. It enables the machines to act, react, think and learn in the manner human beings do. AI assists different machines in learning and analyzing the historical data, making decisions and identifying the patterns. Such a process helps in eradicating the chances of human errors. Therefore, AI enhances the process of decision making of various organizations. From the above factors we can understand, the cloud computing and artificial intelligence are complementing each other’s strengths. Hence, the increase in adoption of cloud computing technology along with the usage of social media platforms has been driving the growth of the AIaaS market.

The largest segmentation by technology is the machine learning. Machine learning is a particular approach to artificial intelligence. Machine learning platform such as supervised machine learning algorithms, unsupervised machine learning algorithms, reinforcement machine learning algorithms, etc. majorly focuses on the development of computer programs to access data and further use it for self-learning. The global machine learning market is primarily driven by the technological advancements during the forecast period. For instance, according to the Royal Society (United Kingdom), advanced machine learning algorithms are now able to perform tasks at a much higher level, can access more amount of data, possess advanced algorithms, etc. The fastest growing segment by technology is natural language processing. Natural language processing (NLP) technology is the ability of computers to extract meanings and generate human-readable text. The NLP system manipulates text and automatically identifies the respective places and people in a document, tabulating the terms and conditions in a set of human-readable contracts. Semantic research is a prime opportunity for NLP, which is estimated to enable non-subject matter experts to gain relevant and insightful answers to the queries that are generated by using only NLP.

The restraints and challenges of Artificial Intelligence as a Service market are AI professional shortage, lack of confidence because of its complex nature, lack of computing power and the requirement of careful programming. The most important restraint is AI professional shortage. As the democratization of AI and deep learning applications expands, the demand for AI professionals to do the work has ballooned as well. The C-suite and corporate management’s excitement for AI’s various applications are building and then once they have bought into the concept, they want to make it real right away. A recent Ernst & Young poll that confirmed 56% of senior AI professionals believed the lack of qualified AI professionals was lodging as the single biggest barrier to AI implementation across business operations. Another reason for the AI skills crisis is that the academic and training programs can’t keep up with the pace of innovation and discoveries through AI. Not only do AI professionals need official training, but they also need on-the-job experience. Therefore, there aren’t enough experienced AI professionals available.

The report on global Artificial Intelligence as a Service includes segmentation on the basis of technology, organization size and industry verticals.

By technology is sub-segmented into:

• Machine learning
• Computer vision
• Natural language processing
• Other

By organization size is sub-segmented into:

• Small and medium enterprise
• Large enterprise

By industry verticals are sub-segmented into:

• Banking finance and service industry
• Information technology & telecom
• Retail
• Manufacturing
• Public sector
• Energy and utilities
• Healthcare
• Others

Geographically, the global Artificial Intelligence as a Service market has been segmented on the basis of four major regions, which includes:

• Artificial Intelligence As A Service North America Market: the United States & Canada.
• Artificial Intelligence As A Service Europe Market: Germany, the United Kingdom, France, Italy, Spain,  Russia, Rest of Europe
• Artificial Intelligence As A Service Asia Pacific Market: China, India, Japan, South Korea, Australia, Rest of Asia Pacific.
• Rest of World: Latin America, Middle East & Africa.

North America holds the largest share in the AIaaS market. North America region includes countries such as the United States and Canada. The region is one of the biggest markets for cognitive computing, owing to the presence of numerous large industries and IT infrastructure, which has contributed to the growth of the market in this region. The government regulations regarding the data security is expected to be a prime driver in the North American artificial intelligence as a service market. Moreover, services for security information and cloud application are also expected to drive the market.

The Asia Pacific is the fastest growing region in AIaaS market, where the artificial intelligence market is developing and expanding at a significant pace, mainly driven by the countries, including China, India, Japan, Australia and Rest of the Asia-Pacific. The Asia-Pacific artificial intelligence market is on the upsurging trend, owing to the establishment of startups, enhancing adoption of artificial intelligence by both the private and public sectors along with the investments made considering the innovation and development of artificial intelligence by the governments.

The major market players of the global Artificial Intelligence as a Service market are:

• Amazon
• Microsoft
• Alphabet Inc. (Google)
• Fair Isaac Corporation
• International Business Machines
• Apple
• Others

Company profiles cover analysis of important players. These companies are using organic and inorganic strategies for growth. For instance, in November 2018, AWS Key Management Service (KMS) offered a standalone console that simplifies the process of managing encryption keys. In August 2018, Amazon established a partnership with the ministry of water resources of India to expand its accurate flood prediction services for an accurate flood prediction and warning system, with the help of artificial intelligence and machine learning. In March 2018, Apple, Inc. established a partnership with IBM to develop a mobile AI solution. In July 2018, Metrobank Card Corporation (MCC), one of the largest payment solution providers in the Philippines has adopted FICO Customer Communication Services (CCS) to automate its collections and achieve scale as its business grew rapidly.

Key Findings of the global Artificial Intelligence as a Service market.

• Banking and finance is expected to be the fastest growing industry vertical
• Artificial intelligence is disrupting many industries
• Hardware architectures are the key to cloud computing
• End-to-end solutions are important for maintaining a competitive edge