Applied AI Services 2024 Market Insights™

April, 2024


Report Summary

This report identifies key demand-side trends in the applied AI services space, helping enterprises fine-tune their AI operations. It provides an overview of key observations and business challenges that Avasant considers important to highlight in this space.

Why read this Market Insights?

Over the past year, enterprises have moved AI projects from production back to pilot and POC stages, driven by the generative AI (Gen AI) wave in BFSI and retail sectors. This shift, aimed at harnessing Gen AI for customer service, IT, and sales, aligns with global Gen AI regulations. Gen AI’s impact is evident in managed services’ productivity, especially in app development and legacy modernization, and the rise of Gen AI-enabled smart devices for real-time enterprise applications.

The Applied AI Services 2024 Market Insights™ aids organizations in identifying important market trends and expectations for any AI projects they engage in.


The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

    • Definition and scope of   services
    • Key enterprise applied AI services trends shaping the market
    • Avasant recognizes 22 top-tier providers supporting the enterprise adoption of applied AI services

Demand-side trends (Pages 8–16)

    • More than half of AI projects are still in the pilot and POC stages, primarily due to security and privacy concerns in Gen AI.
    • The heightened concerns around data privacy and safety have spurred global regulations, aiming to establish guardrails around the use of Gen AI.
    • Banking, retail, and healthcare lead AI adoption for enhanced efficiency, personalized services, and transformative impact across respective sectors.
    • Gen AI could be the biggest lever for reducing effort and gaining productivity  in customer service, app development, and managed services.
    • Organizations of all sizes are pursuing productivity gains and higher revenue growth through Gen AI.
    • Growing demand for edge-based Gen AI capabilities will broaden the market and drive innovation in end-user adoption.

Key contacts (Page 17)

Read the Research Byte based on this report.

Please refer to Avasant’s Applied AI Services 2024 RadarView  for detailed insights on the service providers and supply-side trends.