Artificial intelligence as a service: the potential of the market will grow
The global market for artificial intelligence services in 2022 will grow by more than 50% — from $8.24 billion in 2021 to $12.39 billion — this forecast is contained in a report published by Reportlinker. Analysts explain the growth by the fact that business, recovering from the COVID-19 pandemic, is adapting to the changed realities: social distancing, remote work, new formats of commerce. The market is expected to reach $58.93 billion in 2026 with an average annual growth rate of 47.7%.
Artificial Intelligence as a Service (AIaaS) allows companies and individuals to use AI outsourcing by paying for a license or subscription. At the same time, consumers of AI services solve their specific tasks without significant initial investments and with minimal risks. Companies in the AI market provide services for telecommunications, IT, finance, retail, defense and healthcare, public administration and others.
ARTIFICIAL INTELLIGENCE IS BECOMING MORE ACCESSIBLE
The main types of artificial intelligence services are machine learning, computer vision, natural language processing. AI is also used to optimize the storage and analysis of structured and unstructured data arrays, creating scenarios, forecasts. The set of AI services from the largest players in the AIaaS market is not limited to this. For example, Amazon has made its personal recommendation system, built on the basis of machine learning, available as a service for retail chains, video streaming platforms and the financial industry. Google’s AI-based services include natural language processing, handwriting recognition, subtitle creation, and real-time translation. And IBM’s Watson cognitive system is used to prevent financial crimes, and also analyzes data that helps doctors make treatment decisions.
The development of the AIaaS market has a number of favorable consequences:
- Increasing the availability of AI benefits for businesses.
The acquisition or development of complex software is an expensive undertaking. By purchasing a subscription to a service or a license for ready-made software, a business can distribute costs over time and gain access to modern technologies for reasonable funds.
The acquisition of artificial intelligence as a service allows companies to experiment with AI for various activities without a large initial investment. In addition, AIaaS suppliers are engaged in the maintenance of their infrastructure and processing, removing these tasks from the client.
- Continuity of development and relevance.
AIaaS leaders have the opportunity to hire leading developers in this field, which allows them to create the best solutions. And thanks to the constant flow of customer payments, service providers direct substantial funds to the development and improvement of their products. As a result, customers get access to the most up-to-date software to solve their tasks.
AI LIGHTS UP NEW "STARS"
The past 2021 was rich in successful exits to the stock exchange of companies developing software based on artificial intelligence. Here are just some of them:
- BABYLON is one of the fastest growing digital healthcare companies in the world, with a contract to serve more than 24 million people in 16 countries. The company's mission is to make high-quality healthcare accessible to everyone. Babylon went public in October 2021, the valuation of the business at the time of the IPO was $4.2 billion.
- DARKTRACE is a leading developer of AI for cybersecurity, is a pioneer of autonomous response technology. Darktrace AI is able to prevent ongoing cyber attacks, including ransomware, email phishing, cloud and critical infrastructure breaches. Darktrace serves more than 6800 customers in more than 110 countries, and the company has more than 2 thousand employees worldwide. The company was listed on the London Stock Exchange in April 2021 and raised 165.1 million pounds during the IPO.
- SENTINELONE is a project working in the field of software development for security in cloud storage, data processing algorithms and endpoints. The SentinelOne platform protects customers who are among the ten largest companies in the world. SentinelOne is trusted to protect corporate data by McKesson, Estée Lauder and Aston Martin. The company debuted on the NYSE in June 2021. SentinelOne received more than $10 billion of capital from entering the stock exchange, and this became the most expensive IPO in the field of cybersecurity in history.
The integration of AI into business has accelerated significantly after the pandemic, and more and more companies developing solutions based on artificial intelligence are planning to enter an IPO in the next few years. Obviously, the range of AI applications will steadily expand, and the AIaaS industry expects active growth.