AI Software as a Service (AI SaaS) is evolving the tech landscape by leveraging cloud technology to provide advanced AI tools, enhancing flexibility and scalability for users. It allows access to powerful functions, including machine learning and natural language processing, without the need for extensive infrastructure. The AI SaaS market, valued at $115.22 billion last year, is projected to grow at a CAGR of over 38% to reach $2.97 trillion by 2034.
Analyst Matthew VanVliet notes significant growth potential in this sector. Two companies poised to capitalize on this trend are Klaviyo, which offers AI-enhanced CRM tools, and HubSpot, known for its comprehensive marketing software and initiatives like the Breeze AI toolkit. Both companies exhibit strong revenue growth and customer bases, with recommendations from analysts indicating confidence in their future performance. VanVliet projects substantial upside for both stocks, with strong buy ratings reflecting broader market consensus.
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