Five worthy reads: Why AI-as-a-Service, or AIaaS, is quickly growing in popularity

Five worthy reads is a regular column on five noteworthy items we’ve discovered while researching trending and timeless topics. Most companies use some type of “as-a-service” solution to optimize output, and this week, we shed some light on the latest “as-a-service” trend to hit the market, AI-as-a-Service.

Illustration by Amirthalingam S

Globally, corporations and businesses are looking to optimize their workforce and maximize their potential in the most cost-effective way. AI-as-a-Service (AIaaS) is not just a buzzword, but an emerging trend that is set to take the tech industry by storm in 2020. Organizations are beginning to embrace AIaaS as a more practical and pocket-friendly means of jumping on the artificial intelligence (AI) bandwagon as opposed to pouring resources and money into establishing their own research and development (R&D).

AI involves gathering high quality data and creating links using algorithms without the need for any special human input. AIaaS vendors around the globe are already implementing AI models for cognitive services such as image/facial recognition and converting speech into text.

Chatbots, which are able to respond to questions and requests using machine learning (ML) and natural language processing, are becoming more common, but the technology that powers them is still a work in progress. Chatbots are paving the way to advanced individual interactions by forming dialogue and answering users’ questions.

Still wondering what all the fuss is about? Let’s look at five interesting reads on AIaaS and how it will reshape the tech industry as we know it.

1. Get ready for the emergence of AI-as-a-Service
One of the biggest signs that AIaaS is trending is the sudden spike in funding for AI startups. According to a recent market forecast done by Tractica, AI-based software revenue is expected to grow at a compound annual growth rate (CAGR) of 43 percent over the next seven years.

2. This is how AI is transforming financial services
A study conducted by the Cambridge Centre for Alternative Finances (CCAF) demonstrates how AI is transforming the global financial services industry. Techs in the industry are in the process of moving from using AI mainly as a means to reduce costs, to utilizing its potential as a revenue generator. They also anticipate that AI will help expand their workforce by 19 percent in the next ten years.

3. The Presence of AI is Growing Overall Within the Marketing Function
From predictive analytics to AI-enabled chatbots, marketers are increasingly relying on AI-enabled services to gain insights on their target audience and achieve a higher return on investment (ROI). AI plays an important role in bridging the gap between data science and execution. AI can be taught to incorporate historic data to provide the best insights for new campaigns.

4. What AI will do for your business this year
Data is still going to remain high on the agenda throughout 2020. However, in the European Union, the GDPR’s requirements are fundamentally misaligned with predictive AI solutions, and organizations are working to circumvent these restrictions.

5. The future of AI is in job enhancement, not replacement
According to a Gartner prediction, by 2024, AI will handle 67 percent of all routine work performed by managers. While this might look like a cause for concern, smart businesses are learning to strike the right balance between humans and machines. In fact, AI is expected to create a completely new job market which did not exist before.

When people imagine AI, the first thing that comes to mind is “human-like intelligence.” Although this is a possibility in the distant future, today’s platforms and models are better suited for addressing domain-specific issues. This is why it is important for enterprises to make AI technology and services available through open sources. By leveraging AI cloud services, companies can offer solutions to an endless list of multifaceted problems.