Artificial intelligence is transforming today’s business environment. As an increasing number of companies seek to maximize the opportunity it presents, AI outsourcing is often the fastest, most cost-effective way to jump on board the AI train.
If you’re weighing up whether outsourcing AI is the right approach for your business, this article will provide the information you need to make the right decisions. Read on to explore:
- Why companies are choosing AI outsourcing over in-house development
- The key benefits of outsourced AI
- Real-world use cases and success stories
- Why Intellias is a market leader among AI service providers
Why companies are outsourcing AI
In recent years, AI has grown from a futuristic concept with minimal real-world use cases to perhaps the most impactful technology trend of all time. The rise of AI has forced businesses to adapt or get left behind. with more than three-quarters of all businesses already using AI in at least one function.
But AI is a highly complex technology with increasingly broad applications. Most businesses simply don’t have the in-house expertise required to turn big ideas into effective AI solutions. Artificial intelligence outsourcing solves this problem by giving businesses access to specialized AI expertise. Unlike hiring an in-house AI team, delegating AI-related tasks and projects to external professionals is a more cost-effective, flexible, and scalable approach. As a result, businesses can:
- Deploy powerful AI applications faster
- Deliver incredible customer experiences
- Focus internal resources on core strategic initiatives
In addition to short-term wins, outsourcing AI brings long-term value. Adopting AI provides a competitive advantage and the opportunity to enhance your reputation. It also offers scalable and sustainable growth, without the need for heavy investments in recruitment or infrastructure.
Unsurprisingly, demand for AI outsourcing is booming. In 2024, the total global AI market was worth $279 billion, with that number expected to grow at a compound annual growth rate (CAGR) of 35% through 2030. AI services make up a significant part of that growth.
Artificial intelligence market
Source: Grand View Research
Key use cases for AI outsourcing
AI’s ability to learn, improve, and simulate human cognition makes it highly adaptable. Today, AI technologies can be applied across virtually all industries to improve efficiency, scalability, and the customer experience. Here are some key use cases of AI across industries:
Telecom
The telecom industry is built on connectivity and outstanding customer service, making it ripe for AI adoption. In 2023, 41% of telecoms had already adopted AI systems, with a further 48% considering it. Without in-house AI expertise, telecoms turn to IT outsourcing companies to help them deploy AI services that include:
- Network optimization through real-time and predictive analytics
- AI-driven chatbots to enhance the customer experience
- Real-time fraud detection powered by machine learning (ML)
- Automated billing and customer management through robotic process automation (RPA)
Global AI in telecom market
Source: Grand View Research
Retail
Retail businesses thrive when they understand customer needs and deliver excellent customer experiences. Through AI outsourcing, retailers can realize powerful use cases that improve sales, retention, and customer satisfaction. Key use cases include:
- AI-powered chatbots and virtual assistants that use natural language processing (NLP) to provide 24/7 support
- Personalization engines that deliver tailored product suggestions and offers
- Intelligent inventory and supply-chain management that reduces overstocking and delays while aligning supply with demand
- Dynamic pricing that adjusts offers to the individual in real time based on customer data and inventory levels
- Automated marketing campaigns with personalized, AI-generated content
Artificial intelligence in retail market
Source: Market.us
Healthcare
Healthcare providers must balance operational efficiency with high levels of accuracy and customer care. Working with outsourcing service providers, hospitals and clinics can access cutting-edge tools without the burden of in-house development. Key use cases include:
- Smart hospitals that combine AI and IoT devices to achieve new levels of operational efficiency
- AI-powered triage systems to prioritize urgent cases and reduce waiting times
- Predictive health analytics to forecast patient risks
- Automated administration — from appointment scheduling to billing
Financial services
Adopting artificial intelligence enables financial services firms to deliver innovative solutions by turning complex datasets into actionable insights. Firms that outsource AI services are able to:
- Detect fraud and financial anomalies in real time
- Provide accurate credit risk assessments based on customer data
- Offer investors access to AI-powered robo-advisors and portfolio data analytics
- Use chatbots to answer customer queries and speed up onboarding
Insurance
The insurance industry is built on fine margins. AI helps insurers understand risk with unbeatable accuracy, all while delivering an exceptional customer experience. By working with external AI experts, insurers can:
- Predict customer risk levels to speed up policy underwriting
- Automate claims processing to reduce waiting times
- Detect incidents of insurance fraud before it impacts the bottom line
- Generate personalized policy quotes and recommendations
Artificial intelligence in insurance
Source: Scalefocus
Challenges and considerations
AI outsourcing offers huge benefits to businesses across diverse industries. That said, working with external AI developers and software outsourcing companies isn’t always plain sailing. Below, we’ll highlight some of the challenges and considerations to bear in mind before you outsource machine learning services or AI capabilities.
- Data privacy and security risks. Handing over sensitive business and customer data to a third party naturally represents a security risk. These risks can be mitigated by choosing AI vendors that follow robust data governance protocols and adhere to ISO 27001 or GDPR requirements.
- Choosing the right partner. No two IT outsourcing companies are the same. We recommend conducting thorough research before making a decision, focusing on proven AI expertise and industry-specific experience to avoid potential issues.
- Managing remote collaboration. Businesses often choose to offshore their AI software development. While this can represent a more cost-effective approach, time zones and cultural differences can cause friction. To keep AI projects on track, choose a service provider that prioritizes clear communication and regular updates.
- Integration with internal systems. For your new AI infrastructure to work effectively, it must integrate seamlessly with existing platforms. AI service providers should prioritize compatibility to minimize disruptions and maximize data-driven decision-making across operations.
- Maintaining oversight. Outsourcing AI shouldn’t mean having limited input into how projects are delivered. Ensure that your service provider remains accountable by defining KPIs, providing regular performance updates, and committing to transparency and two-way communication.
Choosing the right AI outsourcing partner
Given the time and cost involved in building in-house expertise, the decision to outsource AI services is often an easy one. Choosing the right outsourcing partner, however, can be more difficult. To help make this process easier, here are some important factors to look for in an AI outsourcing partner:
- AI expertise. AI is a fast-moving, highly disruptive technology. Look for outsourcing partners with proven experience at the forefront of AI development and innovation. AI is also a broad term, so make sure your provider has expertise in the specific solutions you need — e.g. generative AI, NLP, or machine learning outsourcing.
- Domain experience. Look for technology partners with a deep understanding of your industry and its specific challenges. Customer success stories are a great way to see the real-world impact an outsourcing provider has had in your sector.
- Transparency. Great outsourcing providers combine technical expertise with clear communication and frictionless collaboration. Look for partners that prioritize clarity regarding processes, timelines, and costs.
- Scalability. Depending on the scope of your AI project, you may need access to extensive expertise. What’s more, your requirements may grow as your business scales. With this in mind, look for a service provider with the resources to meet your needs both now and in the future.
- Compatibility. With a global market to choose from, it can be tempting to offshore your AI capabilities to the most cost-effective location. But price isn’t the only factor to consider. Often, nearshoring is more convenient than working with an external team in a completely different time zone. Language barriers and cultural differences are other factors to consider when picking the perfect partner.
Once you’ve narrowed down the field to a shortlist of candidates that meet your criteria, we recommend speaking with them directly to learn more about their approach. You’ll already have a solid understanding of the types of AI services these outsourcing partners offer, but a consultation session enables you to dig a bit deeper. Here are some examples of the questions you could ask:
- How do you ensure data security and compliance with regulations?
- Can you provide references from similar AI outsourcing projects?
- What is your approach to integrating AI solutions with existing systems?
- How do you handle project management and communication?
- What AI frameworks do you use?
- What type of ROI can I expect from working with you?
Intellias — your trusted partner in AI outsourcing
Intellias is at the forefront of AI adoption, helping businesses across the globe build and launch innovative AI solutions. Our end-to-end approach involves gaining a deep understanding of your business and goals. We then work closely with you to develop and implement AI systems that take your business to the next level.
With offices across the Americas, Europe, and Asia, we can help you tap into a global talent pool of leading AI experts. Our expertise and services span the full spectrum, supporting you at every stage of your AI journey. We can help you:
- Develop a strong AI strategy that aligns with your business goals and sector requirements
- Create responsible AI systems and robust governance frameworks to ensure regulatory compliance
- Transform customer interactions with AI chatbots and virtual assistants
- Maximize the potential of generative AI, ML, and predictive analytics
- Establish KPIs and key metrics to measure success and ROI
Our pragmatic build-vs-buy model ensures you get the best-fitting AI tools for your requirements, whether that’s custom-built solutions, off-the-shelf software, or a mixture of both.
We support businesses of all sizes across a broad range of industries. So whether you’re a startup seeking rapid development or an enterprise scaling your AI capabilities across departments, we can help. Our recent work includes:
- Transforming the employee experience at an international telecom through an AI-powered support assistant
- Leveraging AI-powered software development to build a B2B healthcare management system
- Building an AI-assisted analytics platform to enhance churn management for a fitness business
These examples are just scratching the surface of what our team can deliver. If you’d like help turning your AI ideas into powerful real-world solutions, we can make it happen.
The future of AI outsourcing
AI is still a relatively nascent technology. As its scope and capabilities increase, the role and importance of AI outsourcing will grow. Here are some trends to look out for in the future that will change the way businesses access and deploy AI services.
The trend towards AI-as-a-Service (AIaaS)
An increasing number of businesses are opting for AIaaS over traditional, in-house AI development. AIaaS provides access to AI capabilities on-demand, similar to the way businesses access cloud-based SaaS software. This approach reduces the need for significant upfront investments.
Widespread gen-AI integration
Generative AI is expanding the possibilities of content creation, design, and problem-solving. It offers businesses new avenues for innovation and improving the customer experience. In the future, outsourcing providers will help businesses infuse gen-AI into more and more processes.
Shifts in global outsourcing hubs
In recent years, regions like India, Eastern Europe, and Southeast Asia have become prominent AI outsourcing destinations due to their growing talent pools and cost advantages. We can expect this trend to continue in the future, as Western businesses look to offshore or nearshore their AI capabilities.
Redefining outsourcing
As AI technologies evolve, outsourcing is transitioning from a cost-saving measure to a strategic partnership that drives innovation and growth. With the speed at which AI is advancing, most businesses will find it increasingly difficult to grow in-house AI expertise, reinforcing the need for trusted, third-party experts.
The bottom line
AI is changing the way businesses operate, creating new opportunities for differentiation, efficiency, and customer engagement. Given the complex and arcane nature of AI, working with an expert partner is often the most effective way to leverage AI for enterprise growth.
Through industry-leading AI outsourcing, Intellias democratizes AI technology, enabling businesses of all sizes to access cutting-edge solutions without the need for costly in-house development. If you’d like to maximize the incredible opportunity that AI offers, we can make it happen.
Book a call today to kickstart your AI journey.
