Why is AI as a Service so attractive in 2023?

In the realm of technology, the concept of ‘as a service’ has been gaining ground, leading to the inception of various models like software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS). In the same vein, the technology industry is now witnessing the emergence of a new paradigm, AI as a Service (AIaaS). This novel model is poised to revolutionize how businesses leverage artificial intelligence (AI), helping them harness its power without worrying about the complexities and costs associated with building their own AI infrastructure.

The growth curve of AI has been exceptionally steep in the past decade, with AI finding applications in diverse sectors, from healthcare to finance, construction to real estate. According to a Gartner survey, around 70% of respondents expressed their desire for AI to perform tasks like research work, calculations, simplifying procedures, mistakes change, and solving problems. The same survey revealed that about 57% of respondents want the AI to perform one or two tasks, while 18% want the AI to perform more than five tasks.

The AIaaS market is expected to witness significant growth, reaching $11.6 billion by 2024, according to Research and Markets. In this comprehensive guide, we delve deep into AIaaS, exploring its benefits, types, use cases, pros, and cons, as well as top vendors in the field.

Primary Keyword: AI as a ServiceSecondary Keywords: software as a service (SaaS), infrastructure as a service (IaaS), platform as a service (PaaS), artificial intelligence (AI), Gartner survey, Research and Markets

Understanding AI as a Service

AI as a Service (AIaaS) refers to third-party provision of artificial intelligence outsourcing. AIaaS providers offer a range of services from AI strategy to AI software design, deployment, and management. They also assist businesses with data services such as curation, cleaning, assembling, modeling, auditing, and management. The AIaaS model permits businesses to explore and experiment with AI without making a significant upfront investment in development, hardware, and expert staff.

AIaaS Concept

Major IT companies like IBM, Microsoft, Amazon, and Google have already started to offer AIaaS, giving businesses access to sophisticated AI tools and services. This development is especially advantageous for small and medium-sized enterprises (SMEs) that may lack the infrastructure or resources to develop AI in-house. With AIaaS, these businesses can pay only for the services they need and scale up as their data and business requirements expand.

The Advantages of AI as a Service

AIaaS offers several notable advantages that make it a preferred choice for many businesses. Let’s explore some of these benefits in detail.


One of the key advantages of AIaaS is its accessibility. It makes AI technology accessible to businesses, regardless of their size or technical expertise. Companies no longer need to hire a team of AI specialists or invest heavily in AI software development. Instead, they can leverage AIaaS to access ready-made AI solutions that cater to their specific business needs.

Advanced Infrastructure

AIaaS provides businesses with access to advanced AI infrastructure that can be deployed quickly and efficiently. This includes high-performance GPUs required for running AI and Machine Learning (ML) models. AIaaS platforms also offer end-to-end machine learning services, encompassing both pre-built and custom models, along with user-friendly drag-and-drop interfaces for reduced complexity.

Cost Efficiency

AIaaS is a cost-effective solution for businesses. It allows companies to use AI technology without incurring huge upfront costs associated with software research and development. Businesses can pay only for the specific AI tools they need, thereby saving costs.


AIaaS offers scalability, allowing businesses to easily scale their AI use as their data and business requirements grow. This is particularly beneficial for businesses that experience fluctuating demand.

Speed and Ease of Implementation

Implementing AIaaS is quick and straightforward. Most AIaaS providers offer continuous support, ensuring that the implementation process is smooth and error-free. This saves businesses time and reduces potential errors that could occur while trying to build and implement AI tools in-house.

Types of AI as a Service

There are multiple types of AIaaS available in the market, each offering distinctive features and benefits. The most common types of AIaaS include Bots, APIs, and Machine Learning.


Bots, particularly chatbots, are prevalent AIaaS tools. They use AI algorithms, including natural language processing (NLP), to simulate human conversations. Chatbots can provide instant answers to common customer queries, helping businesses improve their customer service. They also learn from their experiences. Imagine being able to run a customer service dept where you can rest assured that your customer queries are being answered with the latest up to date information, whether that’s from your logistics partner, from your maintenance department or from your product design department.


Application Programming Interfaces (APIs) are software intermediaries that enable two applications to communicate with each other. APIs allow developers to add new services to their applications without writing the code. They can be used for various tasks, including extracting entries from text, NLP, emotion detection, computer vision, and conversational AI.

Machine Learning

Machine Learning is a subfield of AI that enables computers to learn from data and make predictions or decisions without being explicitly programmed. AIaaS platforms allow businesses to leverage machine learning without any technical knowledge. These platforms offer various machine learning services, including pre-trained models and tools for building custom models.

Industries Benefiting from AI as a Service

AIaaS has found applications in various industries, including construction, financial services, healthcare, and real estate. But it doesn’t stop there.


Construction companies can harness AIaaS to process and analyze vast amounts of data, identifying potential issues with resource coordination, labor, equipment, site problems, and seasonal weather changes. AIaaS can also provide more accurate cost estimates and help reduce material waste and human errors.

Financial Services

Financial services companies can leverage AIaaS to detect fraudulent transactions, automate routine tasks like record maintenance and invoice processing, and make informed decisions through data analysis. AIaaS can also help these companies better understand their customers and business lines.


Healthcare professionals can use AIaaS to manage high volumes of data and improve patient experiences through AI-powered chatbots. AIaaS can also support patients and staff through virtual personal assistants and optimize performance and operational efficiency with intelligent decision support systems (IDSS).

Real Estate

Real estate agents can benefit from AIaaS through predictive data analytics. AIaaS can help agents gather and analyze data about their clients and rapidly evolving markets, enabling them to make informed decisions about properties and real estate investments.

There is a really interesting McKinsey report here that outlines where the efficiencies for AI will hit over the next few years. We also outlined how this impact might be felt by Professional Services firms in a post here.

Key Considerations When Choosing an AI as a Service Provider

If you’re considering investing in AIaaS, here are some key factors to consider when selecting a provider:

  • Integration Capabilities: Ensure that the AIaaS tools can integrate seamlessly with your existing business applications.
  • Technical Support: Your provider should offer guidance through the implementation process and be available to solve technology-related queries at any time.
  • Scalability of Services: With AIaaS being an expensive investment, it’s crucial to assess its scalability with changing business needs and objectives.
  • Transparency in Pricing Models: Understand the pricing model offered by your chosen service provider to ensure it aligns with your requirements without exceeding your budget.

Introducing Databuilder from Palm AI

Databuilder from Palm AI is an innovative AIaaS solution that allows business users to harness the power of AI in their everyday roles quickly and easily. Databuilder offers various options to use your own data, access public data, or third-party data. It manages and merges that data to create new insights and help you explore the possibilities.

With Databuilder, you can access state-of-the-art modelling and chat functionality to interrogate your results thoroughly, saving you hours of time. You can also output the data to presentations, Word documents, or even websites.

Palm AI dashboard
Where do you want to go today?

Databuilder is a no-code solution, meaning that anyone can use it. You don’t need technical knowledge, just a curious mind. Your data is secure, and the outputs are trustworthy. The AI in Databuilder helps you learn as you go, getting better and better every day you use it.

Wrapping Up

AI as a Service is revolutionizing the way businesses leverage artificial intelligence. By providing accessibility, advanced infrastructure, cost-efficiency, scalability, and ease of implementation, AIaaS is making AI technology more attainable for businesses of all sizes.

Whether you’re a small business owner looking to automate routine tasks or a large corporation aiming to harness the power of AI for data analysis and decision-making, AIaaS offers a cost-effective and efficient solution. With AIaaS, the future of business looks promising, with AI becoming an integral part of everyday business operations.

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