AI as a Service (AIaaS): What Is It, Types, Benefits, and Examples (2024)

The good news is that Artificial Intelligence as a Service (AIaaS) can fit into nearly any budget. By using cloud-based AI solutions, small business leaders can benefit from this advancement without having to spend a huge chunk of change on development or learning how to do it themselves.

It’s no surprise that many companies are catching on to the value and potential of AIasS. Gartner predicts that by 2026, more than 80% of companies will have used GenAI APIs and models and/or deployed GenAI-enabled applications in production environments. This reflects a huge growth, as less than 5% of companies reported AI adoption in early 2023.

What is AI as a service (AIaaS)?

AI as a Service (AIaaS) is associated with cloud-based platforms. This model makes machine learning, natural language processing (NLP), and data analytics within reach. AIaaS providers make it possible to integrate AI into operations without a high barrier to entry. Businesses can experiment with and implement AI technologies regardless of their budget or current tech skills because of these factors.

What is an example of AI as a service?

Amazon Web Services (AWS) SageMaker falls under the category of AIaaS. Developers and data scientists can use it to build, train, and execute machine learning models. SageMaker makes it possible to integrate machine learning into applications. It’s known for its pre-built algorithms, managed infrastructure, and intuitive interfaces. SageMaker offers advantages to companies looking to analyze data, draw insights, and make better decisions that help them save time and money.

Is ChatGPT AIaaS?

Chat GPT ticks the boxes, too. OpenAI’s ChatGPT helps businesses use natural language processing in customer service systems and other operational areas. ChatGPT helps users improve customer interactions, automate responses, and achieve gains in overall efficiency without having to develop the infrastructure on their own.

4 Main Types of AIaaS Companies

Bots and AI Assistants

You’re likely familiar with bots and AI assistants. These are among the most prevalent types of AIaaS solutions. These services pull in NLP for customer interaction, real-time response, and automating repetitive tasks.

Machine Learning Frameworks

Machine learning provides the foundation to build, train, and activate machine learning models. TensorFlow and PyTorc are two examples that can introduce advanced analytics and forecasting. Two qualities—standard components and scalability—give businesses the advantage of developing complex AI applications.

API Programming Interfaces

API programming interfaces offer an advantage in that developers can integrate AI functions into their applications. Think image recognition, speech processing, and sentiment analysis. APIs mean companies can take advantage of AI features without having to pay thousands for development.

AI of Things

The AI of Things (AIoT) combines AI with the Internet of Things (IoT). You might be familiar with how smart devices can process and analyze data to inform areas like predictive maintenance and energy management. These solutions can help businesses devote resources to facets that bring in money or reduce costs.

7 Benefits of AI as a Service (AIaaS)

Speed

AIaaS helps introduce AI solutions at scale. Every minute counts when trying to beat your competition.

Stability

AIaaS providers help companies enjoy stable and consistent performance. This benefit is an advantage for companies that cater to customers around the clock and across multiple time zones.

Long-Term Value

By leveraging AIaaS, companies can derive long-term value through continuous improvements and updates provided by AI service providers. This ongoing support and innovation ensure that businesses can keep up with the latest advancements in AI technology. Many internal teams wouldn’t be able to do this on their own because they lack the knowledge and resources.

Cost-Effectiveness

AIaaS puts this advanced technology within reach. There’s no need for a huge upfront investment in hardware and software. Businesses can unlock AI capabilities on a subscription or per-use case. Organizations of all sizes can experiment and benefit from AI without a huge price tag. The stakes are lower, which makes the proposition more enticing.

Scalability and Flexibility

AIaaS solutions are nimble in that they allow usage based on demand, meaning your company can scale up or back as needed—which also helps to control cost. This isn’t the case with other types of technologies, making it more enticing.

Access to Cutting-Edge Technology

AIaaS providers are committed to continuous improvement. This means their customers gain access to innovations that can put them on the map.

Reduction of Development Time and Resources

AIaaS offers an advantage in that it reduces the time and resources associated with AI solutions. This frees up time for mission-critical tasks that can bring in more money. When every minute counts in a global economy, having more time can mean the difference between simply keeping pace and getting ahead. It also keeps your business connected to cutting edge technology, so you don’t fall behind the competition.

5 AIaaS Applications & Examples

Customer Service and Chatbots

In the context of customer service, AIaaS solutions make it possible to deliver instant responses, especially to common questions. These widgets can create happier customers and take some of the pressure off agents who are often juggling multiple interactions at once. Everyone wins when automation enters the equation.

Data Analytics and Business Intelligence

Users can look to AIaaS platforms for advanced data analytics and business intelligence tools. These can be sources of insights that result in better decisions, forecasting sales trends, gauging performance, and hitting sales goals.

Predictive Maintenance and IoT

The Internet of Things (IoT) ties in with predictive maintenance. In this situation, AI models crunch data to predict and prevent equipment failures. Companies and their customers benefit from reduced downtime, lowered maintenance costs, and longer equipment lifespan. These surprises can be the kiss of death. By getting ahead of issues, businesses don’t have to worry about being blindsided by a breakdown that can leave them high and dry.

Natural Language Processing and Translation Services

NLP and translation services can help businesses understand and engage with customers in multiple languages. You can expect better communication, expanded market reach, and improved user experience.

Personalized Marketing and Recommendations

AIaaS solutions look at customer data that can inform targeted recommendations and content. Companies that adopt such an approach tend to enjoy better engagement, better sales figures, and more long-term customers.

Future Trends in AI as a Service (AIaaS)

No one has a crystal ball, but we do know that AIaaS has come a long way in recent years and it’s only going to get better with time. Here’s what you can likely expect as AIaaS enters its next stage:

Natural, Human-Like Conversational Experiences

The AIaaS solutions of the future will be associated with natural and human-like conversational experiences. Investments in NLP and machine learning will help AI applications better discern context and respond with appropriate and more relevant answers.

Deeper Personalization

AIaaS will likely help bring a greater degree of personalization across various applications, thanks to more detailed data and advanced algorithms. AI services will help companies develop products and services that cater to individual preferences and behaviors. This is in contrast to taking a shot in the dark. With greater personalization over generic customer interactions, you reduce the risk of missing the mark and turning off a customer in the process.

Better Collaboration and Reduced Data Silos

AIaaS providers will help companies and their teams make better use of existing business systems and break down barriers affecting data sharing and access. These improvements can set the stage for teamwork and more informed decision-making.

Customizable AI Solutions

The future of AIaaS will allow companies to tailor AI capabilities to meet specific use cases and level up. After all, the best tool is the one that’s relevant to your organization and its goals.

AI-Powered Automation

AI-powered automation will continue to deliver efficiencies and reduce the need for manual intervention. From customer service to supply chain management, AIaaS will stand out as a way for teams to do more with less.

Collaborative AI

Collaborative AI means that companies can benefit from both automation and the human touch. Experts believe that AI systems will work alongside people to help them do more at scale. Companies and their people can benefit from better problem-solving and efficiency, which they likely couldn’t achieve without technological intervention.

Next Steps

AIaaS makes these types of developments accessible to virtually anyone. It’s synonymous with scalable, flexible, and cost-effective AI solutions; AIaaS makes it possible for businesses to benefit from AI without having to invest in costly development. AIaaS is also dynamic, which means that the best is yet to come. However, companies stand to gain a lot from using AIaaS right now.

That doesn’t mean that adoption will come without any friction. There can be growing pains no matter your company’s stage. That said, it helps to keep the following in mind when looking to make the investment:

Put People First

You might struggle with explaining to your team how AI can help them. They might be afraid that it will take their jobs. However, you can offer reassurance and show them how this technology can and will support them. Answer their questions and address concerns. Investing in training and continuous improvement programs will help them feel confident in their ability to use AIssS tools and even measure its impact.

How to Get Started

AI can bring so much value that it can be overwhelming to know where to start. Often, the best place to start is by looking at areas of your business that suck up a lot of time. What tasks are repetitive or lower in revenue generation? This is usually your answer.

Go Further Faster With Podium’s AIaaS

You need a partner in your corner to get started with AIasS—and handle any curveballs along the way. Enter Podium’s leading AIaSS platform. See why more than 100,000 businesses across the nation trust Podium’s AI Employee to help them respond to leads faster, close more deals, and work smarter.

Better yet, you can tailor Podium’s AI Employee to your needs—including connecting with your systems of record, setting up your services and product offerings, and handing off AI Employee conversations to a human for more complex situations. You’ll also have access to a dedicated customer success manager to further customize your AI Employee to your specifications.

See where AIssS will take you in 2024 and beyond by watching a demo today.