Artificial Intelligence as a Service Market Analysis

  • Report ID: 3901
  • Published Date: Jun 26, 2025
  • Report Format: PDF, PPT

Artificial Intelligence as a Service Market Segmentation:

Service Type Segment Analysis

The software segment is poised to account for a 78.5% share throughout the forecast timeline, owing to increasing enterprise demand for flexible, cloud-based AI tools that reduce infrastructure costs. Businesses are adopting AI software for applications such as natural language processing, computer vision, and data analytics to fuel automation and decision-making. The flexibility and ease of integration with old legacy systems make software-based AI solutions more attractive. Further, continuous advancements in AI frameworks and open-source platforms are also fueling adoption across sectors. As organizations emphasize digital transformation, AI software services are becoming necessary for enhancing productivity and competitiveness.

Technology Segment Analysis

The machine learning segment is anticipated to register a dominant artificial intelligence as a service market share of 44% by the end of the forecast period due to its ability to learn and improve from data without explicit programming. This adaptability allows organizations to automate complex decision-making processes, improve predictive analytics, and enhance operational efficiency across sectors. The rise in big data generation, combined with flexible cloud solutions, has made machine learning highly accessible and cost-effective for all enterprises. Additionally, the increasing demand for customized user experiences and access to live data insights is encouraging its adoption. Thus, machine learning acts as a core enabler of innovation in AIaaS platforms.

Our in-depth analysis of the global artificial intelligence as a service market includes the following segments:

Segment

     Subsegments

Service Type

  • Software
  • Services

Technology

  • Machine Learning
  • Natural Language Processing (NLP)
  • Computer Vision
  • Other Technologies

Application

  • Data Analytics & Visualization
  • Fraud Detection
  • Customer Service and Management
  • Risk Management
  • Compliance & Security

End use

  • Banking, Financial Services, and Insurance (BFSI)
  • IT & Telecom
  • Retail
  • Manufacturing
  • Public Sector
  • Energy & Utility
  • Healthcare
  • Others

Deployment Model

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Browse key industry insights with market data tables & charts from the report:

Frequently Asked Questions (FAQ)

Currently in 2025, the industry revenue of artificial intelligence as a service is evaluated at USD 1.5 billion.

The global artificial intelligence as a service market is set to rise from USD 1.4 billion in 2024 to USD 8.1 billion by 2037, witnessing a CAGR of more than 15% throughout the forecast period, between 2025 and 2037.

The North America region artificial intelligence as a service market is projected to register a remarkable revenue share of 39% between 2025 and 2037.

The major players in the market include Microsoft Corporation, IBM Corporation, Google LLC, Amazon Web Services (AWS), SAP SE, Infosys Limited, TietoEVRY, Telstra Corporation Limited, Samsung SDS, HCL Technologies and other.
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