Most businesses that use AI today do not build their own models. They rent AI from someone else, through a subscription, an API or a managed service. That model has a name: AI as a service, or AIaaS. This guide explains what it covers, what it costs, what to check before you sign, and how businesses in Malta can choose the right provider for their needs.
What is AI as a service?
AI as a service is the AI equivalent of cloud software. Instead of buying servers, hiring data scientists and training models, a business uses AI that a provider has already built, hosts and keeps up to date. You pay for what you use, and the provider handles the infrastructure, security and model updates.
For most small and medium-sized businesses, this is the only realistic way to use advanced AI. The models behind tools like ChatGPT, Claude and Gemini cost enormous sums to build, but they can be used through an API for a few cents per task.
The three types of AIaaS
| Type | What you get | Who it suits |
|---|---|---|
| AI models via API | Direct access to models from providers such as OpenAI, Anthropic and Google, paid per use | Businesses with developers, or working with a partner, who want AI inside their own systems |
| AI platforms and tools | Ready-made products such as AI assistants, document processing tools and chatbots | Teams with common needs that an existing product already handles well |
| Managed AI services | A partner designs, builds, connects and runs an AI solution around your processes | Businesses that want results without building an in-house AI team |
Many businesses use a mix: off-the-shelf tools for everyday tasks, and a managed service for the processes that are specific to them.
What does AI as a service cost?
Costs come in three parts. The first is usage: API-based AI is usually charged by the amount of text processed, which for most business tasks works out at fractions of a cent to a few cents per document or request. The second is setup: connecting the AI to your systems, building the checks around it and testing it on your own data. The third is running costs: hosting, monitoring, support and updates when models change.
For most projects, setup is the largest cost, not the AI itself. Our guide to AI document processing costs and payback shows how to work out whether a project pays for itself, and eligible businesses may be able to part-fund AI projects through Malta Enterprise schemes.
The benefits and the risks
Benefits
- Access to leading AI models without building or hosting them.
- Pay for what you use, with no large upfront investment in infrastructure.
- Faster results: a working pilot in weeks rather than months.
- Model improvements arrive automatically as providers update them.
Risks to manage
- Data use: some plans allow the provider to use your data to improve their models. Business plans usually exclude it, but check in writing.
- Data location: know where your data is processed and stored, especially for personal data under GDPR.
- Model changes: providers retire and update models. A change can affect accuracy, so it should be tested on your work first.
- Lock-in: if everything is built around one provider’s tools, switching later can be costly.
How to choose an AIaaS provider in Malta
Whether you are comparing AIaaS companies in Malta or international platforms, these questions separate a good provider from a risky one:
- Which AI models do you use, and can you switch between them? A provider that can work with several models protects you from lock-in.
- Where is our data processed, and is it used for training? The answer to the second question should be no, in writing.
- Who can access our data, and is access logged?
- How do you test a new model before switching?
- What do we own if we leave? Your data, prompts, configurations and any custom code should come with you.
- How will we measure results? Ask for a baseline and a clear measure of time or cost saved.
Our guide to using free ChatGPT Plus safely at work covers the same data questions for personal AI accounts.
How Haystack delivers AI as a service
Haystack works as a managed AI service for businesses in Malta. We build on the latest stable models from leading providers such as OpenAI, Anthropic and Google, choose the right one for each task, and connect it to the systems you already use. We then run, monitor and update the solution, test new models on your own work before switching, and keep a person in charge of important decisions. You can see the full range on our AI automation in Malta page, and how we handle data in our AI policy.
Frequently asked questions
What is AI as a service (AIaaS)?
AI as a service is AI that a provider hosts and maintains, which businesses use through a subscription, an API or a managed service instead of building and running their own models.
Is AI as a service suitable for small businesses?
Yes. It is usually the most practical way for small and medium-sized businesses to use advanced AI, because there is no infrastructure to buy and costs grow with usage.
How much does AI as a service cost?
Usage is typically fractions of a cent to a few cents per task. Most of the cost is in setting the AI up around your systems, checking its output and maintaining it over time.
Is our data safe with an AIaaS provider?
It can be, provided the provider does not use your data for training, processes it in line with GDPR, limits and logs access, and lets you take your data with you if you leave.
What is the difference between AIaaS and hiring an AI developer?
An AI developer builds a solution for you. AI as a service also covers hosting, running and maintaining it, so you get a working system without managing the technology yourself.
Looking for an AI as a service partner in Malta? Book a free discovery call with Haystack and we will show you what AI could take off your team’s plate.
