Increasing Adoption of Cloud-based Services, and Supportive Government Initiatives to Fuel Cloud AI Market
The global cloud AI market is expected to grow significantly over the forecast period owing to the increased adoption of cloud-based services, and heightened demand for virtual assistants in cloud platforms. The growing adoption of hybrid cloud is also creating new opportunities in cloud AI market. Cloud computing and traffic are expected to increase as 5G adoption and mobile penetration rises. As a result, there is expanding scope for cloud AI services. Companies are also increasing their investment in cloud AI because of technological advancements, increasing digitalisation, and rising demand for virtualisation, storage, and analytics, all of which are propelling the market growth. For instance, in August 2020, Wiserfunding, a UK-based fintech firm, announced plans to launch cloud-based AI-enhanced credit risk assessment tools in India. The company intends to invest between US$3-5 Mn in developing customised, and accurate credit risk models to determine the creditworthiness of potential borrowers with an accuracy level of greater than 80%.
Governments and large NGOs around the world, too, have been allocating significant time and resources to piloting the technology and are investing in various AI applications, which is fuelling the cloud AI market. In February 2019, the US government launched AI.gov, an American AI Initiative with applications such as cloud and Big Data, smart robotics, smart cars, and strategic technologies, to focus on the Federal government's resources with the goal of developing AI to increase national prosperity, improve quality of life for the American people, and enhance national and economic security.
Growing Cloud AI Services to Drive Growth of Cloud AI Market
The services segment is expected to grow at the fastest rate over the forecast period. The increasing adoption of smart technologies is expected to drive demand for Al services. These services leverage the capabilities of solutions to speed up business operations. Companies use AI services to reduce overall operational costs, resulting in higher profits. Companies are using Artificial Intelligence as a Service, or AIAAS, to gain a competitive advantage over the cloud. Installation, integration, maintenance, and support are all examples of AI services.
Increasing Investment in AI in North America to Drive Growth of Cloud AI Market
North America is likely to dominate the global cloud AI market over the forecast period due to its role as one of the early adopters of the technology. Cloud adoption is also quite high among regional end-users. As a result, the amount of money invested in the market under consideration is excessive. In addition, the area is a prominent player in the global cloud hybrid and IaaS market. Market participants in the region are spending in developing new and distinctive features for their products, mostly to obtain a competitive advantage and grow their target consumer base. This is also projected to boost regional and global markets. This aspect broadens the market's reach even more. In addition, the region is a major player in the global cloud AI market. For instance, SoundHound Inc., based in the United States, offers Houndify, an AI platform that allows developers and company owners to deploy a conversational interface anywhere to maintain control over their brand and people while differentiating and innovating. SoundHound music identification technology was recently integrated into the company's Houndify speech AI platform. To speed up development, it formed a strategic partnership with Honda Motor Co. Ltd.
The market in the Asia Pacific is expected to grow significantly during the forecast period. This expansion is due to significantly increased investments in AI. The market in this region is seeing an increase in the need to improve operational efficiency in the manufacturing industry, as well as an increase in the adoption of cloud-based applications and services across various industries. In April 2020, Siemens has announced that MindSphere is now available on Alibaba Cloud. The successful deployment and operation are expected to boost China's industrial Internet of Things (IoT). Similarly, as of October 2019, Amazon Web Services has been training relevant government employees in India to create a cloud-first approach to digital transformation and enhanced skill sets as part of the Indian government's initiatives to deploy AI and Machine Learning-driven Cloud models to make sense of massive amounts of data.
Global Cloud AI Market: Competitive Landscape
In July 2021, Microsoft Corporation teamed up with Darktrace Holdings Limited, a U.K.-based cybersecurity Al provider, to offer self-learning Al that detects threats at maximum machine speed. Through the agreement, the organisations can provide strong security against new cyber threats. On the other hand, in August 2020, Google Cloud expanded its partnership with Best Buy with a multi-year agreement for Best Buy's Enterprise Data Platform. The collaboration is expected to provide an enhanced technological experience by utilising AI and analytics to create more personalized shopping experiences for the latter's customers.
A few of the players in the Cloud AI market include Amazon Web Services Inc., Microsoft Corporation, Google LLC, IBM Corporation, Intel Corporation, Nvidia Corporation, Cloudminds Technology, AIBrain LLC, Salesforce.com Inc., SoundHound Inc., Twilio, Inc., Visenze Pte Ltd, Infosys Limited, and Wipro Limited.
Global Cloud AI Market is Segmented as Below:
By End-user Vertical
Key Elements Included In The Study: Global Cloud AI Market
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