The global artificial intelligence-as-a-service market is forecast to achieve a 47% increase between 2019 and 2023, according to a new report by Technavio.
The need by businesses to use advanced infrastructure at a reduced cost is a key factor driving the market growth.
Whilst businesses intend to adopt artificial intelligence to improve efficiency, productivity, and to reduce operational expenses, the high costs associated with setting up, operating and maintaining AI infrastructure is driving firms to opt for AIaaS.
The development of AI requires large investments for hardware including sensors and software, and additional resources such as AI professionals.
The growing demand for smart homes and an increase in the development of smart cities are key emerging trends in the global artificial intelligence as-a-service market.
In smart homes, artificial intelligence as-a-service solutions are being used to remotely control smart devices HVAC and security equipment to optimise energy management, the security, smartness and comfort of their homes.
In the smart cities industry, AI as a service is for instance being used to make transportation smart, optimise urban planning, and to make cities safe. The AIaaS platform helps to track that habits of citizens, behavioral characteristics, and activities.
Despite the anticipated growth, the market is expected to decelerate on a year-on-year basis during the forecast period.
“Apart from growing demand for smart homes and development of smart cities, some other factors boosting the global market are lack of skilled workforce encouraging enterprises to shift towards AIaaS and the use of AIaaS for human interaction with machines using natural language processing (NLP),” says a senior analyst at Technavio for research on IT professional services.
The Americas had a 39% share of the market in 2018 followed by EMEA and APAC regions in leading, respectively.
The APAC region is expected to register the highest incremental growth, owing to the growing adoption of this technology in industries and rising investment by governments in countries such as India.
This article was published on our sister website Smart Energy International.