The global Artificial Intelligence As A Service Market size is estimated to reach USD 105.04 billion by 2030, registering to grow at a CAGR of 36.1% from 2025 to 2030 according to a new report by Grand View Research, Inc. AI as a service is a third-party artificial intelligence outsourcing service that allows large enterprises and SMEs to explore development opportunities without requiring a significant initial investment. It enables businesses or end-users to experiment with AI for various applications while limiting initial investment and risk. Furthermore, greater AIaaS integration with blockchain and increased investment in AIaaS by governments and end-users are likely to drive market growth.

For instance, in July 2022, the United Nations Development Programme (UNDP), a United Nations agency, and the Telangana government established data in climate resilient agriculture (DiCRA), an AI-powered platform service focused on providing farmers with climate change information. The AI platform can identify farms that are robust to climate change and others that are vulnerable using pattern detection algorithms and remote sensing.

Progressive enterprises are adopting artificial intelligence and other digital technologies to improve the overall work experience. Employees need fast support to stay productive with the change to work from anywhere, whether they have an HR request, an IT problem, or a query about the spending policy. Traditional service desks lack the speed and scale necessary to provide a hybrid workforce with 24/7 assistance in real-time. To completely solve this issue, AI, as a service provider, offers employees the assistance they require in a matter of seconds.

For instance, in July 2022, Moveworks, Inc., an artificial intelligence startup based in the United States, announced a collaboration with Tata Consultancy Services Limited. This partnership will enable customers to revamp their service desks with AI, and they can rely on the partnership's expertise and technology to automatically support their personnel. The increased usage of social media and the Internet of Things (IoT) is driving demand for AI technology, which drives the demand for AI services. Furthermore, many AI technology vendors find that providing AI tools and software is insufficient as many enterprises are searching for outsourcing services. As a result, such a factor is increasing the demand for AI services.

Businesses can improve their productivity by implementing AI-powered IoT solutions in industries such as manufacturing, retail analytics, self-driving cars, and others. This is projected to fuel the market for AI as a service. For instance, in June 2023, CLARA Analytics, Inc., a prominent provider of AI-as-a-service (AIaaS), introduced an AI platform designed specifically for general liability claims. This newly unveiled platform utilizes advanced machine learning algorithms to pinpoint variables associated with litigation, medical escalation, and other factors contributing to increased costs in the realm of general liability claims.x

List of Key Players in Artificial Intelligence As A Service Market

• Amazon Web Services, Inc.
• Salesforce, Inc.
• IBM Corporation
• Intel Corporation
• BigML, Inc.
• Fair Isaac Corporation
• Microsoft
• Google LLC
• SAP SE
• Siemens

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Artificial Intelligence As A Service Market Report Highlights

• Based on technology, the machine learning segment led the market in 2024 with a revenue share of over 40%. The increased spending on machine learning adoption and technical improvement for workflow optimization drives the demand for the segment
• In terms of deployment, the public cloud segment dominated the market with a revenue share of 551% in 2024. The increased usage of cloud-based solutions and the need for artificial intelligence and cognitive computing drive the segment growth
• Based on service type, the services segment is anticipated to register the fastest CAGR during the forecast period. Managing massive amounts of data alongside other business activities becomes challenging for enterprises, creating a demand for managed and professional artificial intelligence (AI) services
• The BFSI segment led the market with the largest revenue share of 20.4% in 2024, due to the sector's increasing focus on automation, risk management, and personalized customer experiences. Financial institutions are adopting AIaaS to streamline operations, detect fraud, enhance compliance, and improve decision-making through advanced data analytics. 

Artificial Intelligence As A Service Market Segmentation

Grand View Research has segmented the global artificial intelligence as a service market based on technology, service type, deployment, organization size, vertical, offering, and region. 

Artificial Intelligence As A Service Technology Outlook (Revenue, USD Billion, 2017 - 2030)

• Machine learning (ML)
• Computer Vision
• Natural Language Processing (NLP)
• Others

Artificial Intelligence As A Service Service Type Outlook (Revenue, USD Billion, 2017 - 2030)

• Software
• • Data Storage and Archiving
  • Modeler and Processing
  • Cloud and Web-Based Application Programming Interface (APIs)
  • Others
• Services

Artificial Intelligence As A Service Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

• Public
• Private
• Hybrid

Artificial Intelligence As A Service Organization Size Outlook (Revenue, USD Billion, 2017 - 2030)

• Large Enterprises
• SMEs

Artificial Intelligence As A Service Vertical Outlook (Revenue, USD Billion, 2017 - 2030)

• BFSI
• Healthcare and Life Sciences
• Retail
• IT & Telecommunication
• BFSI
• Manufacturing
• Energy & Utility
• Others

Offering Outlook (Revenue, USD Billion, 2017 - 2030)

• SaaS
• PaaS
• IaaS

Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America
• • U.S.
  • Canada
  • Mexico
• Europe
• • UK
  • Germany
  • France
• Asia Pacific
• • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
• • Brazil
• MEA
• • UAE
  • South Africa
  • KSA

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