Many claims have been made about artificial intelligence (AI), including that it will eventually dominate most humanities fields. Others have responded to concerns that the technology may cause millions of people to lose their jobs by saying that AI is simply a tool to increase human productivity. AI as a service, or AIaaS, is already making waves.
AIaaS describes the ready-to-use AI solutions (typically software) with which companies can implement and scale AI operations while spending fractions of the cost of in-house AI infrastructure. The migration of data centers from in-house to cloud services offers the best analogy. Initially, companies maintained vast fields of servers, expending millions of dollars in annual costs. But once Amazon Web Services, Microsoft Azure, and Google Cloud came along, companies opted for data center infrastructure as a service.
In other words, AIaaS is a model where businesses can access AI technology and expertise through third-party providers. AIaaS providers typically offer a range of services, including machine learning, natural language processing, computer vision, and predictive analytics, among others.
Although the model is fairly new, the market has already caught the scent of the immense growth potential of the AIaaS market, and it is taking necessary steps. The expanding value of the market is a testament to the activity. Different sources have different estimates for the market size, but they all agree that it is expanding rapidly.
For example, a MarketsandMarkets report valued the market at USD 1.13 billion in 2017, noting that it would grow at a 48.2% CAGR to reach USD 10.88 billion this year. Another report by Grand View Research estimated that the global AIaaS market was worth USD 5.61 billion in 2021. Furthermore, the report expected the market to expand at a 37.1% CAGR between 2022 and 2030.
The reports are in consensus about the key drivers of AIaaS market growth. They cite the rising demand for machine learning (ML) services in the form of APIs and SDKs as the primary growth driver. Also, there is a growing number of innovative startups likely to inject more impetus into the market.
The big corporations are already deeply invested in the market, include, Duos Technologies (NASDAQ:DUOT), Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Cloudflare (NYSE:NET). These companies serve the AIaaS market in different capacities, shifting investors’ attention to their stocks.
Epazz Inc. is a rising star that any investor interested in getting in on the ground floor of an AI company should check out.
Epazz, Inc. (OTC: EPAZ); Epazz develops utility software programs for business enterprises, hospitals, and government and post-secondary institutions in the United States. The company’s solutions include project management, document management, and compliance tracking services designed to improve business efficiency and compliance.
Epazz’s role in AIaaS primarily focuses on providing AI-powered predictive analytics solutions. The company’s solutions use machine learning algorithms to analyze data and provide useful insights. For example, a hospital uses insights to identify trends that can help management deliver better patient services.
Epazz builds its products on top of the foundation and plumbing that are provided by Nvidia, Cloudflare, and Microsoft, among others. What makes EPAZ special is that its services are as mission-critical as MSFT, NET, and NVDA’s. On the one hand, the foundational technology ensures that the AIaaS industry is running efficiently and reliably, while on the other hand, EPAZ’s services ensure its users can accomplish their daily operations without a hitch.
One of Epazz’s core products is the AI predictive Smart Charging Pad. The wireless charging pad utilizes AI to predict and optimize charging patterns for the company’s spin off drone from Zenadrone, the ZenaDrone 1000. The smart charing pad is designed to adjust the charging output automatically based on the device being charged, ensuring each device receives optimal charging power without overcharging or undercharging.
Epazz’s horizon for explosive growth just expanded recently due to government efforts to flush Chinese-made drones out of its toolbox. The US government has a major need for drones, and until a few years ago, China controlled the pipeline. It was inevitable because few competitive designs were being manufactured in the US.
CEO Shaun Passley, Ph.D., said, “We are taking multiple pathways to become a government contractor of drones. It is a major opportunity for us, as Chinese drones are banned in the US government. It has opened up major demands for our drones.”
But now that Epazz is in the game and has a serious lineup of drones, the government has more options and is choosing its own people. Interestingly, the Epazz leadership is already positioning the company to maximize the opportunity. The company, through ZenaDrone, is “taking multiple pathways to become a government contractor of drones.” Accordingly, ZenaDrone has already submitted Phase 1 SBIR proposals and should receive feedback in three months.
Last month, the company received positive news, EPAZ was granted a patent for the technology inside the charging pad, as well as the design. This means that EPAZ will not only earn from producing and selling the charging pads but also generate income from licensing the technology and design.
CEO Shaun Passley, Ph.D., said, “We are building a portfolio of Drone patents which not only protect our technology, but creates added value which may gain the interest of larger parties in the future.”
The company aims to solidify its lead in predictive drone technology with a recent agreement with OpenAI. ZenaDrone, Inc., an Epazz, Inc. subsidiary, is upgrading the predictive engine in the ZenaDrone 1000 to OpenAI’sPredictive AI Analytics. Given OpenAI’s success with ChatGPT and the Bing search integration, there is no doubt that this upgrade will be a game-changer.
In other words, Epazz has a lot going on, enough to challenge the behemoths in the AIaaS space, including MSFT and NET. Considering the sector is still making baby steps, there is plenty of room for pleasant surprises.
Looking at the current AIaaS landscape, one can easily dismiss Epazz ostensibly because of the immense competition the big corporations present. However, this attitude immediately changes when one considers that Epazz is a niche business with the potential for complete domination. Epazz does not face serious competition in the smart drone technology sector.
Duos Technologies (NASDAQ:DUOT): DUOT provides AI-based intelligent security and analytical technology solutions, focusing on the rail and transportation industries. They include intelligent predictive analytics, video analytics, and machine learning algorithms that help to improve safety, security, and operational efficiency.
The company announced mid-last month that a Class 1 customer in Mexico had integrated 30 of its AI models into their operations. The purchase comes when Duos Technologies’ business is flourishing, with the revenue base growing significantly in January this year.
Duos Technologies reported $15.4 million in revenues for FY2022, an 86% increase year-over-year. In addition, the company expects to add between $5 million and $6 million in the current financial year. As a result, the stock price is on a steep trajectory – up 146.67% year-to-date.
Nvidia (NASDAQ:NVDA): Nvidia may not be an AIaaS company per se, but its products build the industry’s core. The chipmaker is a leading provider of graphics processing units (GPUs) and AI chips. In other words, Nvidia is responsible for the hardware aspect of the AIaaS industry.
The company’s GPUs are widely used in AI training and inference, providing high performance and energy efficiency. NVDA also offers software tools and libraries that make it easier for developers to build and deploy AI applications.
Thanks to the AIaaS hype, especially after the successful launch of OpenAI’s chatbot, ChatGPT, NVDA stock has been an investor favorite. It is up 62.18% year-to-date and 292.56% over the past five years.
Microsoft (NASDAQ:MSFT): Microsoft is among the biggest players in the broader AI and cloud computing industries. It is well-known for its Windows operating system and Office productivity suite, but it has also made significant investments in AI technology over the past decade.
MSFT’s role in AIaaS primarily focuses on providing cloud-based AI services through its Azure platform. Azure is the primary competitor of Google cloud and Amazon Web Services.
But perhaps the clearest indication that MSFT was all in the AIaaS sector is the collaboration with OpenAI to launch Bing Chat, an integration of ChatGPT into Bing search to create a chat mode in the search engine. Since the integration, Bing has seen more people download the mobile app. Interestingly, just 800,000 downloads of Bing’s mobile app were recorded in 2022. The figure jumped in the week since the integration was announced, with a peak of more than 150,000 downloads daily. More people are also using the Bing search engine on desktops.
Due to the Bing-ChatGPT integration effect, the MSFT stock is up 4.11% year-to-date. Bing search is also predicted to claw back some more share of the search engine market from Google.
Cloudflare (NYSE:NET): No one would want to use AIaaS solutions if they did not come with a security guarantee. In this regard, Cloudflare ensures that cloud-based activities are secure and reliable. The company provides cloud-based security, performance, and reliability solutions for websites and applications. The solutions include various services, such as content delivery, DDoS protection, and a web application firewall.
The solutions extend into AIaaS, whereby Cloudflare’s machine learning algorithms are deployed to analyze website and application traffic. As such, engineers can detect potential security threats and block malicious traffic in real-time. NET also offers various other AI-powered services, such as bot management and image optimization.
In other words, Cloudflare is responsible for the plumbing that ensures AIaaS runs efficiently. Given its centrality to the AI wave, NET has seen significant growth over the past year. The company’s fourth quarter FY2022 revenue came in strong, increasing 42% year-over-year to $274.7 million. The stock has also benefited immensely, growing 233.39% over the past five years and 39.49% year-to-date.
Undoubtedly, AIaaS has the potential to make good returns for those who get in early. However, the companies that will dominate are those that are ready to get their hands dirty today. ChatGPT revolutionized how the world looks at the promise of AI, and companies like Microsoft, Nvidia, Cloudflare, Epazz, and Duos are lining up to claim the front-row seat to the show. However, given the fluid nature of technological advancements, it may not come as a surprise for niche businesses like Epazz, Inc. (OTC: EPAZ) to find their way in the AI-driven boom.
Razorpitch Inc. is a marketing communications and investor relations firm serving private, pre-IPO, and public companies. RazorPitch specializes in corporate, investor, and stakeholder communications. Our goal is to raise visibility, expand awareness, and increase value. To learn more, visit RazorPitch.com.