AI Created SaaS Market is Estimated to Be Valued at USD 770.32 Billion in 2031

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A newly published report by Coherent Market Insights reveals a sustainable growth in opportunities in the AI created SaaS market. Coherent Market Insights’ analyst projected the AI created SaaS market to be valued at USD 770.32 Bn in 2031. It is expected to exhibit a CAGR of 40.2% over the forecast period 2024 -2031.

Increasing adoption of AI by SaaS providers to make their applications richer and better in terms of the customer experience is a major growth driver of the market. AI helps SaaS companies get real deep insights about customers and personalize offerings based on customer behavior. It also helps in automating repetitive mundane tasks, thereby improving operational efficiencies.

Moreover, AI enables SaaS providers to deliver predictive analytics and even create human-like virtual assistants, or chatbots, to create more meaningful engagements with customers.

Key Market Trends: Adoption of AI Chatbots – AI chatbots is a key trend driving market growth. Chatbots powered by AI are gaining increasing acceptance among SaaS vendors to handle basic customer queries without human intervention. AI Chatbots can understand intents behind customer queries, provide 24×7 support and free up human agents to focus on complex issues. They are cost-effective, scalable and improve customer satisfaction levels.

Growing Investments in AI Startups – Venture capital investments in AI startups continue to rise globally. A large chunk of funding is directed towards development of AI-powered SaaS applications. This has led to proliferation of novel AI SaaS solutions addressing industry-specific requirements.

AI Created Saas Market Opportunities: On the basis of organization size:  The large enterprises segment is expected to hold the largest share of the AI Created SaaS market during the forecast period. Large enterprises are increasingly adopting AI-based SaaS solutions to automate internal processes and optimize operations. The ability of AI SaaS platforms to efficiently manage and analyze large volumes of enterprise data makes them well-suited for the needs of large organizations.

On deployment– The cloud deployment segment is anticipated to dominate the AI Created SaaS market through 2031. Cloud-based AI SaaS solutions offer advantages such as scalability, low upfront costs, easy deployment and maintenance. Cloud deployment allows SaaS vendors to provide their solutions on a pay-per-use model, eliminating the need for large capital expenditures. It also ensures solutions are always up-to-date with the latest features and security patches.

The BFSI vertical is poised to emerge as a key end-use industry for AI Created SaaS solutions over the forecast period. SaaS-based AI platforms help financial organizations gain insights from large customer databases to improve risk management, detect fraud patterns and deliver personalized recommendations. This is spurring increased investments in AI SaaS by companies operating in the BFSI vertical.

Key Market Takeaways: The global AI created SaaS market is anticipated to witness a CAGR of 40.2% during the forecast period 2024-2031. This is owing to growing investments in AI by organizations to gain operational efficiencies and databased insights.

On the basis of organization size, the large enterprises segment is expected to hold a dominant position. This is owing to higher budgets for digital transformation.

By deployment, the cloud segment is poised to lead the market. This is due to scalability, easy updates and low upfront costs.

In terms of vertical, the BFSI industry is expected to emerge as a key revenue generator. This is due to rising spend on AI for customer analytics, risk management and fraud prevention.

North America is expected to hold a dominant position over the forecast period. This is due to early technology adoption rates.

Competitor Insights: Key players operating in the AI Created SaaS market include,

Here is the corrected version with commas between each item:

Alteryx, Inc., Dropbox, Inc., Datarobot, Inc., Databricks, Cresta, Github, Inc., Ai, Haptik, Hubspot, Hyperverge, Inc.

Recent Developments: In February 2024, Sound Hound AI Inc. experienced a 575% stock rise due to increased demand for its AI-powered voice technology software.

In May 2024, Google Cloud reached a milestone: 50% of CIOs aim to integrate its AI services into enterprise operations by 2025, solidifying its position in AI SaaS. More information is available in full report