The market size of data annotation tools is expected to grow at a rate of 26.5% from 2023 to 2030, according to an analysis report by Grand View Research. Companies are switching more than 4 data annotation tools in a year due to the need for accurate and high-quality data. Various alternatives to Lightly AI are available, including Encord Active, Scale AI, iMeriti, Dataloop, SuperAnnotate, Labelbox, Aquarium, Voxel51, Aporia, and Picsellia. These alternatives offer a broad set of features and capabilities for building AI lifecycles, extensive repositories of pre-trained models, scalable model building, monitoring, testing, and production services, automations with Gen AI, and integrated support for LLMs. However, Lightly AI's limitations include limited support for data types allowed, access to few integrations, and unavailability of pre-trained models.