Get ready for the emergence of AI-as-a-Service

Algorithmia AI Generated Summary

A new “_” as a service model is aspiring to become just as widely adopted based on its potential to drive business outcomes with unmatched efficiency: Artificial intelligence as a service (AIaaS).

The AIaaS opportunity

According to recent research, AI-based software revenue is expected to climb from $9.5 billion in 2018 to $118.6 billion in 2025 as companies seek new insights into their respective businesses that can give them a competitive edge. Organizations recognize that their systems hold virtual treasure troves of data but don’t know what to do with it or how to harness it. They do understand, however, that machines can complete a level of analysis in seconds that teams of dedicated researchers couldn’t attain even over the course of weeks.

https://thenextweb.com/podium/2020/01/24/get-ready-for-the-emergence-of-ai-as-a-service/?jwsource=cl

But, there is tremendous complexity involved in developing AI and machine learning solutions that meet a business’ actual needs. Developing the right algorithms requires data scientists who know what they are looking for and why in order to cull useful information and predictions that deliver on the promise of AI. However, it is not feasible or cost-effective for every organization to arm themselves with enough domain knowledge and data scientists to build solutions in-house.

AIaaS is gaining momentum precisely because AI-based solutions can be economically used as a service by many companies for many purposes. Those companies that deliver AI-based solutions targeting specific needs understand vertical industries and build sophisticated models to find actionable information with remarkable efficiency. Thanks to the cloud, providers are able to deliver these AI solutions as a service that can be accessed, refined and expanded in ways that were unfathomable in the past.

One of the biggest signals of the AIaaS trend is the recent spike in funding for AI startups. Q2 fundraising numbers show that AI startups collected $7.4 billion — the single highest funding total ever seen in a quarter. The number of deals also grew to the second highest quarter on record.

Perhaps what is most impressive, however, is the percentage increase in funding for AI technologies — 592 percent growth in only four years. As these companies continue to grow and mature, expect to see AIaaS surge, particularly as vertical markets become more comfortable with the AI value proposition. …

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