AI as a Service Dominated by the Usual Science Club Members

May 12, 2022

A burgeoning AI-as-a-Service field may enable businesses of all sizes to take advantage of AI tools without the high cost of developing their own solutions in-house. So declares ReadWrite in its look at the “Growth of AI as a Service (AIaaS) Market.” Writer Neeraj Agarwal touts the purported advantages of such tools, which include NLP, robotics, machine learning, and computer vision:

“After having a view of what the future holds for you, businesses will be able to:

* Create strategies specifically for regional and country based on figures and facts.

* Identify where and when to invest.

* Outperform against key competitors using data and the drivers and trends shaping the market.

* Understand customers based on the latest market research findings.

* Grow Businesses by strategically positioning themselves in tech run.”

Sounds great. But we wonder what happens when just a few companies dominate. We are told:

“Big Companies like Microsoft, IBM, Google, and other market leaders have actively introduced AI services in their business models, increasing their reach and revenue without much time investments.”

So are smaller firms are shut out of this lucrative market? If so, does the lack of competition limit the benefits of these tools? These points are not addressed in the write-up. It does share some other information about the AIaaS arena, however, like how much, and in which directions, it has grown:

“The global AI-as-a-Service market was valued at USD 1.35 Bn in 2016 and is estimated to reach USD 43.1 Bn by 2028, at a CAGR of 46.9% during the forecast period. The base year considered for the study is 2017, while the forecast period is between 2018 and 2028. The compound annual growth rate (CAGR) forecast till 2028 of the different categories of the AI market are:

* AI Services- 22%

* AI Hardware- 20.5%

* AI platforms- 34.6%

* AI System Infrastructure Software- 14.1%

* AI Lifecycle Software- 38.9%

* AI Business Services- 21.9%

The market has been bifurcated into cloud-based and on-premises deployment models based on the deployment model.”

The piece also discusses types of applications available, segmentation of the market, and an analysis of competition among the major players. See the article for those details.

Cynthia Murrell, May 12, 2022


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