Artificial Intelligence As A Service Market Size, Share, Growth Analysis, By Service Type(Software and Services), By Deployment(Public Cloud and Hybrid Cloud), By Region - Industry Forecast 2024-2031

Artificial Intelligence As A Service Market Driver

• Rising AIaaS adoption in the BFSI and healthcare industries

The banking, financial services, and insurance sectors all witness significant growth during the forecast period. The expanding digital revolution in banking and the increased use of mobile payments, e-banking, real-time money transfers, and mobile banking applications create massive amounts of customer data or transaction records. Financial institutions can manage this massive amount of data and use artificial intelligence to deliver a personalized customer experience. Similarly, AI enables financial institutions like banks to detect fraudulent transactions and anti-money laundering initiatives, which is expected to boost industry growth. Cloud-based AI services, including chatbots and voice bots, biometric fraud detection, digital payment advisors, smart wallets, and personal financial services, are expected to drive market growth during the forecast period.

• Rise in Artificial Intelligence Dependence of Businesses

Due to the competitiveness of the business to provide the best possible service and experience, artificial intelligence has been quickly incorporated into the system. To manage large amounts of data without error, artificial intelligence has been integrated into the analytical activities of the organization. Artificial intelligence is seen as a way to increase an organization's revenue returns while reducing operational costs. This will allow small and medium-sized companies to expand significantly over the forecast period. Businesses use artificial intelligence in cloud learning to save time and resources and get the best results for the least money. Businesses can experiment with their products more effectively. The high demand for multi-cloud functionality and cloud-based intelligence that saves energy and space increases the revenue of the company.

Artificial Intelligence As A Service Market Restraint

• Concerns about data privacy

AI-driven systems mine large amounts of data for future company planning and efficiency insights into operations. Concerns about data privacy are growing as powerful AI solutions are developed. AI raises data privacy concerns due to the tool's ability to make autonomous decisions and actions. Furthermore, corporations are using data anonymization strategies to prevent data breaches when using AI, in which they generalize important information about data points. In AIaaS such sensitive data is critical. As a result, it is difficult for organizations to ensure the privacy and confidentiality of data points and huge amounts of data.