Artificial Intelligence as a Service Market Outlook:
Artificial Intelligence as a Service Market size was valued at USD 1.4 billion in 2024 and is projected to reach USD 8.1 billion by the end of 2037, rising at a CAGR of 15% during the forecast period, 2025 to 2037. In 2025, the industry size of artificial intelligence as a service is estimated at USD 1.5 billion.
The artificial intelligence as a service market is undergoing robust growth, driven by major investments in technological innovation. For instance, India has allocated $1.25 billion to the IndiaAI Mission, focused on creating indigenous AI solutions tailored to local needs. This project involves building a cutting-edge shared computing infrastructure with an initial capacity of about 10,000 GPUs, consisting of 7,200 AMD Instinct MI200 and MI300 series, 12,896 Nvidia H100, and 1,480 Nvidia H200 processors. Companies such as Orient Technologies, CMS Computers Limited, and Jio Platforms have been authorized to supply these GPUs, expanding access to advanced AI computing resources. Similarly, in the U.S., the National Security Commission on Artificial Intelligence has committed to a remarkable boost in federal AI R&D funding, recommending a surge in the budget each year from $2 billion in 2022 to $32 billion by 2026.
Businesses across sectors are focusing on automating regular tasks and utilizing data analytics to enhance operational efficiency and strategic decision-making. AIaaS solutions provide customizable services such as natural language processing, machine learning, and predictive analytics that allow businesses to optimize workflows, improve user experience, and decrease costs. For instance, in 2023, Walmart deployed AIaaS-powered predictive analytics solutions to streamline inventory management throughout its supply chain. This strategic implementation reduced stockouts by 15-20% and led to a 16% improvement in accurate demand forecasting, highlighting how AI-powered automation can boost efficiency in operations in the retail industry. The swiftly increasing demand for intelligent automation is a major driver of growth in the artificial intelligence as a service market.
