What do Google, Amazon, IBM, and Netflix all have in common? Artificial Intelligence (AI).

Whether it’s ranking web pages or taking orders through a drive-thru, AI is involved in many aspects of their operations. Why? Because businesses want operations to be efficient, error-free, and convenient, and AI can make that happen. AI can handle large amounts of data and figure out the best actions to take. 

The great thing is, that AI can be applied to any industry and business. But, here’s the catch, AI app development costs can be a lot. Because of the complexities involved, many companies hesitate to dive into their AI ideas.

This blog will give you the outline, of how much it can cost to develop an AI application, what factors are involved in the cost, and most importantly how it can be beneficial for your business.

Facts and Stats of AI

Facts and Stats of AI
  1. In 2022, global AI investment reached $91.9 billion and it will increase in the future. (Source: Stanford University)
  2. 77% of Businesses are exploring AI-based technologies to implement for their growth. (Source: IBM)
  3. It is assumed that the AI market will grow to over half a trillion dollars by 2024. (Source: Statista)
  4. The global AI market is projected to reach $1,811.8 billion by 2030, with immense growth at 38% CAGR from 2021 to 2030. (Source: Tech Jury)

Signify Your AI App Development Cost

When it comes to planning the mobile app development budget, it’s crucial to consider various factors we’ve discussed earlier. While it’s challenging to pinpoint an exact cost due to the diverse elements involved, the overall expense for AI app development typically ranges from $35,000 to $200,000 and more.

However, it’s important to note that the price may vary based on the specific needs and features of your AI application. The entire process of AI app development costs,

  • Choosing between custom or off-the-shelf solutions
  • Identifying key features
  • Considering hardware needs
  • Deciding on in-house or outsourced teams
  • Factoring management and maintenance
  • Evaluating project duration

It’s worth noting that the actual cost can be influenced by the complexity of your AI project, the level of customization required, the choice of hardware, and whether you opt for in-house development or outsourcing. While the provided cost range serves as a general guideline, it’s advisable to consult with AI development experts who can provide more accurate insights tailored to your specific project needs. Regularly reviewing and adjusting your plan as the development progresses is also key to ensuring that the budget aligns with evolving requirements.

Factors That Affect AI App Development Cost

Factors That Affect AI App Development Cost

The cost of AI app development for your business depends on various factors. First off, not all AI is the same. Some types are commonly used and straightforward to develop, while others are still in the early stages. 

So, the artificial intelligence costs depend on where your project falls on this scale. Before asking about the cost, figure out which category your project fits into. Here are some things that decide how much your AI app development costs.

  1. Project Type

Firstly you need to determine whether you require an on-demand AI app development or an off-the-shelf one. A custom app involves creating and training AI from scratch to meet specific business needs. A process that takes considerable time and effort.

For instance, developing highly configured ERP solutions can take several months, and artificial intelligence app development cost typically ranges from $5,000 to $200,000.

On the other hand, off-the-shelf AI applications are like pre-packaged products ready for use with predetermined algorithms. These can be seamlessly integrated into your business operations with minimal effort.

For example, utilizing pre-built chatbots from providers like Hubspot may cost between $99 and $500 per month. While off-the-shelf artificial intelligence costs are easy to pocket and offer less customization compared to custom AI app development. 

  1. Type of AI Base

AI is a broad term covering various spectrums, each designed for different tasks and outputs.

For example, one business might need a chatbot, while another may require an AI analysis system. This technology is seen in tools like content generators and paraphrase tools, each with its development processes and costs.

The common uses of AI in business fall into three categories:

  1. Technology-Based AI App Development

This category includes AI app development on different technologies such as robotic process automation, speech recognition, computer vision, and data science. These technologies find applications in diverse industries.

  1. Functionality-Based AI App Development

AI app development in this category is classified based on the functions it performs. Examples include reactive machines, limited memory AI (chatbots), theory of mind, and self-awareness AI.

  1. Capability-Based AI App Development

After building the functionality, AI gains an identity based on its capabilities. Examples include artificial narrow intelligence (ANI) like Siri and face recognition, artificial general intelligence (AGI) like GPT, and hypothetical artificial super intelligence (ASI).

  1. Task Requirements of AI

To determine the cost of AI development, businesses must consider various factors:

  1. The level of intelligence desired.
  2. The amount, quality, and type of data to be fed to the AI.
  3. The minimum accuracy level for the algorithm.
  4. The complexity of AI app development, with simpler ones like chatbots, requires less infrastructure.
  5. Any potential future scaling, may pose additional challenges and increase AI app development costs.

These factors help developers understand the task requirements for AI app development and plan the necessary technology and processes for its creation.

  1. Features

The special things that set AI applications apart are their features. Depending on what you want your AI application to do, you might need certain features and not others. 

For example, if your AI application involves generating text or answering questions, you’ll need a feature called natural language processing. Similarly, deep learning goes hand in hand with machine learning. You might also want features like speech or image recognition in your AI.

No matter which feature you choose, it will affect the cost of AI app development. That’s because getting AI to be good at understanding and processing data depends on using trusted features. And all these features add up to the final cost.

  1. Hardware Costs

Whether you’re making an AI application or getting it from another company, you’ll need to consider the hardware costs. Usually, when you hire an app development company, the hardware costs are separate.

There are two options for AI hardware: on-premises or cloud-based. On-premises hardware includes things like GPUs (for training neural networks), application-specific integrated chips (ASIC), and TPUs (to speed up tasks). Each of these hardware types is pricey and needs a big investment.

Cloud-based hardware, which you use remotely, might be a cheaper option for some parts of your setup compared to on-premises hardware. To figure out what’s best for your business, you’d need to talk to an expert.

  1. Management and Maintenance

Running an AI application needs a team to manage it, and you can choose to have that team either in-house or outsource app development. Having an in-house team might be more expensive because you have to pay their salaries, but an outsourced app development company saves you that cost.

Now, AI app development is one thing, keeping it working well is another. While the AI can be trained to do its tasks at the beginning, it needs regular updates and maintenance from the team to keep up with the changing needs of the business. This way, it stays efficient and performs at its best.

  1. Project Duration

Duration can increase the cost of AI app development. This duration depends on everything we talked about earlier. For example, making a simple version of AI costs less and takes less time compared to making a more advanced version.

Whether you’re getting help from an outside team or have your team, if it takes longer, the team has to put in more time and effort, and that means the final cost goes up.

Benefits of AI App Development

Benefits of AI App Development

Well AI app development has numerous benefits that can be a game changer for your business. 

The artificial intelligence cost estimation is important but only when you can know how it can benefit you.

  1. Improved User Experience

Natural language processing (NPL) and machine learning (ML), developers can make apps more user-friendly with conversational interfaces. UI boosts customer experience and app functionality.

  1. Customer Support 24/7 

Artificial intelligence never takes a day off. They’re always ready to help, day and night, without any break. AI app development is mostly used as a virtual assistant app, you can have customer support 24/7.

If your users are spread across different countries with different time zones then you should know AI app development cost. It will be a great help for your business to help your users when you can sleep.

  1. Enhanced Productivity

AI-integrated assistants work like Usain Bolt in the IT industry. The AI app development will be a great add-on to your automation process on daily tasks. It provides efficient and enhanced productivity in your business.

Most of the time large-scale enterprises invest in these AI app development. So, it will be a better thought for small or medium-sized enterprises to understand AI app development costs.

  1. Improved Work-Life Balance

AI app development helps your businesses provide a work-life balance to your employees. By allotting the day-to-day tasks to an AI assistant, businesses can focus their time on the more important tasks which helps in growth.

  1. Accuracy

Smart voice assistants that use AI technology quickly understand and respond to what users say. They use things like machine learning and natural language processing to get what users mean. They usually give accurate answers, solving users’ problems with just a voice command.

  1. Easy Accessibility

One great thing about a smart voice assistant is that you can use it anytime, anywhere, without any device. As long as you have the internet, this AI assistant for business is ready to help you, no matter where you are.

  1. Personalized Experience

AI app development should look at what users like and suggest things just for them. They provide a human-like experience by helping your users to make quick decisions. If you want to make coins then your user experience is a must-have. So with that, you should create a plan for AI app development cost.

  1. Reduced Wait Time

An AI app development can reduce your time consumption and let you manage further challenges that can be resolved by human intelligence. You just need to feed the basic information to your virtual assistant and run the automation in the back. It will help your business to focus on better opportunities.


The artificial intelligence industry is so huge that any other industry can implement it in their business. As we all have seen the industry giants have become integral to diverse operations.

Therefore, it is a great opportunity to become one of them. But for that, you have to include a column in your budget for “AI app development cost.” 

You just need to navigate the complexity of your AI app development, as well as take some consultations with experts. The future undoubtedly holds exciting possibilities as AI continues to shape the way businesses operate and connect with their audience. You just need to be one to implement, to grow your business.


Q1. How much does it cost to develop an AI application?

With respect to any kind of complexity and size your AI app development will vary in the cost. The AI app development cost can start from $5,000 and can go to $200,000 or even more. The cost of the development can depend on multiple factors.

Q2. Is it expensive to develop AI applications?

For this question there is one answer “depend on the features.” The cost of the AI app development varies depending on the multiple factors you will be adopting. With the skills of natural language processing, data science, and so on, it can be a little expensive. But it can all be clarified through the budget map you will create.

Q3. How can you price an AI app development project?

To estimate or price your whole AI app development project, you need to follow a few steps that will help you to get a clear vision.

Firstly, you need to clearly define the scope of the AI project. Then the next step is to classify the IT and non-IT tasks, as they both have different pricing points. And then for the last, what development approach do you want?


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