Global Artificial Intelligence-as-a-Service (AIaaS) Market 2019-2023

The global artificial intelligence-as-a-service (AIaaS) market is expected to post a CAGR of over 47%, according to the latest market research report by Technavio. However, the market is expected to decelerate on a year-on-year basis during the forecast period. A key factor driving the growth of the market is the use of advanced infrastructure at a reduced cost. With the adoption of AI, enterprises are expected to have long-term benefits in terms of efficiency, productivity, and reduced costs. Also, an AI database is designed to store data indefinitely. However, the development of AI requires high investments for hardware such as sensors and software as it is a complex machine. In addition to the set-up cost of AI, maintenance and repair costs also add to the burden to enterprises planning to implement this system in their businesses. Enterprises using AI in their business operations should also be able to recover lost codes of the system. In order to do so, these enterprises have to invest in additional resources such as AI professionals to maintain AI. Such factors add to the cost of implementing and maintaining AI. Thus, to avoid direct costs associated with implementing and maintaining AI, enterprises prefer to outsource these implementation and maintenance tasks to AIaaS providers, thereby increasing the adoption of AIaaS. Such factors will lead to the growth of the market during the forecast period.