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Guide: What is AI as a Service (AIaaS)

Domantas Alosevičius

Over the last year, you have probably heard a lot about AI. There are a lot of companies opening up that are developing AI tools, AI solutions, or AI integration. Everyone is talking about artificial intelligence and how to use it. So what is this AIaas?

AI as a service

If you search for any AI tools or just tools, you will notice that almost everyone is saying that their thing is better because it has AI or you can’t miss AI in 2024. But it seems that people tend to forget what AI is in general and just slap it on everything they see.

Don’t worry, this won’t be an overly complicated guide to how AI works in general, this guide will explain what AIaas is, some examples, companies that are creating AIaaS, and what the future holds.

What is AI & AI as a service?

AIaaS stands for Artificial Intelligence as a Service. It’s essentially a way for individuals and businesses to access and use AI capabilities without having to build or maintain their own AI systems from scratch. Think of it like renting an apartment instead of buying a house – you get the benefits of AI without the upfront costs and complexities of building your own.

Through a subscription or usage-based delivery model, it allows businesses and individuals to pay for artificial intelligence (AI) capabilities.

Overall, AIaaS makes AI technology more accessible to a wider range of users by providing a low-risk, cost-effective and easy-to-use way to harness the power of AI.

Is AI as a service the same as SaaS?

Is AI as a service the same as SaaS?

No, AI as a service (AIaaS) and Software as a Service (SaaS) are not the same, although they share some similarities:


  • Delivers software applications over the internet, typically on a subscription basis.
  • Users access the software through a web browser or mobile app, without needing to install it on their own devices.


  • Provides access to artificial intelligence (AI) functionalities through the cloud.
  • Users can use pre-built AI models, tools, and APIs to integrate AI capabilities into their own applications or processes.

What are the benefits of AI as a service?

AI as a service (AIaaS) offers several advantages that make it attractive to businesses of all sizes. Here are some of the key benefits:

  • Cost-effective: Developing AI in-house requires a significant investment in specialists, hardware, and software. AIaaS provides access to pre-built models and tools without the upfront costs, making it a more affordable way to leverage AI technology.
  • Scalability: AIaaS allows you to easily scale your AI usage up or down as needed. This is particularly useful for businesses with fluctuating workloads or those that are still experimenting with AI.
  • Ease of use: AIaaS platforms are designed to be user-friendly, even for businesses without a lot of technical expertise. You don’t necessarily need to have coding knowledge to implement and use many AIaaS solutions.
  • Faster time to market: Since you don’t have to build everything from scratch, AIaaS can significantly reduce the time it takes to get your AI project up and running.
  • Access to advanced technology: AIaaS providers are constantly innovating and updating their offerings. This means that you can access the latest AI technologies without having to invest in expensive infrastructure.
  • Improved efficiency and productivity: AIaaS can automate repetitive tasks, freeing up your employees to focus on more strategic work. This can lead to significant improvements in efficiency and productivity.

Overall, AIaaS can be a powerful tool for businesses that want to use AI without the hassle and expense of developing their solutions.

How big is the AIaaS market?

How big is the AIaaS market?

The global artificial intelligence market was valued at $196.63 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030.

In the past two weeks, Microsoft has invested more than USD 5.5 billion in AI data centers in Berlin and Madrid and signed a multi-year partnership and a USD 16 million investment in French tech startup Mistral AI.

As early as 2024, Microsoft is already making big investments, and with everyone jumping on the AI hype train, we’re likely to see the market grow even more over the next few years.

AIaaS Examples

AIaaS Examples

There are several different types of AIaaS , each suited to different needs:

  • Bots and Digital Assistants: These are AI-powered chatbots that can interact with users through text or voice. They can be used for various purposes, such as customer service, sales, and technical support. 
  • Application Programming Interface (API): AIaaS solutions can provide APIs that allow software programs to gain access to AI functionality. This can be used to add features like image recognition, natural language processing, or sentiment analysis to existing applications. 
  • Machine Learning (ML) Frameworks: These are tools that developers can use to build their own AI models. AIaaS providers may offer cloud-based ML frameworks that make it easier to develop and deploy models without having to manage the underlying infrastructure. 

AIaaS Companies

  • OpenAI: Founded in 2015, they conduct research, develop tools, and advocate for responsible development of AI to ensure it benefits humanity. 
  • IBM Watson: IBM Watson is a suite of AI services that can be used to automate complex tasks, improve decision-making, and gain insights from data. Watson’s services include natural language processing, machine learning, and computer vision.
  • Amazon: Amazon Web Services (AWS) is a major cloud computing platform that offers a wide range of AI services, including machine learning, natural language processing, and computer vision. Amazon also uses AI in its e-commerce operations and for its Alexa virtual assistant.
  • Microsoft Azure AI: is a comprehensive suite of AI services and cognitive APIs. With services like Azure Machine Learning, organizations can build, train, and deploy machine learning models for any task.
  • Salesforce Inc: Salesforce is a customer relationship management platform that has integrated artificial intelligence into its services. Its AI engine, Einstein, helps businesses better understand and engage with their customers by offering predictive analytics, personalized recommendations, and automation features.

Final thoughts

Final thoughts

In summary, AIaaS provides a flexible, scalable, and cost-effective way for organizations to leverage AI technologies without the need for extensive in-house development or expertise. It offers a wide range of solutions, including APIs and machine learning capabilities, to address different business needs and challenges.

If this software does not meet your company’s needs, consider hiring a company like Idea Link to create a custom AI software solution.

More and more companies are offering AIaaS solutions, and new AI tools like Gemini are being released every day. It is exciting to see what the future holds.


Domantas Alosevičius

Domantas Alosevičius

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