How Much Does Developing an AI App Cost?

40% of global companies are turning to AI for a reason. A single AI app can help businesses save up to 30% on customer service, save up to 10 hours per day and increase customer satisfaction by up to 20%. 

There are no mere figures; this is a testament to the power of AI. A strategically designed and developed AI app holds the potential to redefine the success of a business. But, before you dream of success using an AI app, hold your horses and learn how much it costs to build an AI app.

Knowing how much an AI app costs is the first step towards successful AI app development as it helps you figure out if it's worth the money. However, decoding this factor is not easy as the price can change a lot, depending on what you want the app to do, what you have to work with, and who you hire to build it.

To clear the air, we decided to explore various factors that affect the cost of developing an AI application. We’ll also look at how long it typically takes to create an AI app and advise on how to make cost-effective choices.

Must Read: Comprehensive Guide To Software Development In 2024 
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How Much Does AI App Development Cost?

Money matters for all of us and when it comes to managing a business, investing money the right way holds great importance.  The cost of developing an AI application largely depends on what your business needs. Whether you’re building a simple AI-powered chatbot or a sophisticated AI-powered search engine, the cost will vary. It all depends on the complexity of the application, your preferences, and the skills of the development team.

Here’s a general idea of ​​what AI app development can cost depending on its complexity

Factors Affecting AI App Development Costs

It is important to understand what affects AI app development costs. It helps businesses plan and budget for AI projects. Understanding these factors will allow you to make better decisions and allocate your resources more effectively.

1. The Complexity of the AI ​​Model

One of the biggest cost drivers is the complexities of the AI ​​model selected. Simple AI models, used in the development of basic chatbots or rule-based systems, require little data and can be generated in a short amount of time. Hence, they are light on the pocket. 

For instance, a basic AI-powered purchasing assistant might need very few predefined rules and very little data. This holds the development price cheap, about $30,000. However, complex AI models are demanding in front of resources, skills, and development time. This increases the total development cost. 

A complex medical diagnostic AI agent that employs deep learning to study images can cost more than $100,000. That is due to advanced technology and sophisticated data processing.

Must Read: Discover the Role of AI Agents in Healthcare 

2. Quality and Quantity of Training Data

Regardless of the AI app you want and the model selected, training data is the foundation. And, the type of data quality and quantity you use impacts the total AI development cost. You have to spend a little more if you use fully structured, formatted, and labeled data in large volumes. The use of data protection boosts the final cost as well. 

AI apps, developed using simple data, are affordable as this data is publicly available and requires minimal cleaning. However, AI apps trained using complex data such as medical images and financial data are costly affairs as these datasets require extensive processing.

3.  Expertise of the Development Team

The skills of your development team are going to decide the final AI app development cost. For example, hiring an experienced AI developer in the US means investing somewhere around $129,043. But you can hire a beginner AI developer at an affordable cost of $80,000.

With gig platforms around, you can hire the desired professional on per per-hour basis. While it may be tempting to save money by hiring less experienced professionals, this can lead to problems later on as it might hamper the quality and performance of the app designed. 

4.  App Features

The elements you choose for your AI app will have a big effect on the price. A lot of features often mean more time on development, testing, and modification, all of which increase costs.

Developing simple AI applications with basic functionality such as user interaction or data processing would be lesser in cost. Yet, a robust app with advanced AI-powered features, such as sophisticated user interfaces or predictive analytics, would be a little high.

When building your AI app, prioritize what will benefit your business and users. This approach helps you to control costs and ensure that your app meets your needs and gives you a good return on your investment.

5. Stages of Development

Developing an AI app often takes several steps, each with its own costs. These processes include design and conceptualization, UI/UX design, front-end and back-end development, AI prototype development, testing and integration, implementation, and post-launch support.

Here is the estimated cost breakdown for each stage of development: 

These costs can quickly add up, especially if your project requires a lot of development work or if unexpected complications arise. 

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Development Timeline: How Long Does it Take to Develop an AI App?

Having an idea of AI app development time is crucial for effective planning. Multiple factors such as AI model type, features to include, type of data used, scope of the AI app, etc. influence the AI app development time. 

The general timeframe for developing an AI app is as mentioned below. 

1. Simple AI apps: 3-6 months
2. Medium-complexity AI apps: 6-9 months
3. Complex AI apps: 9+ months

But, it’s just an estimate. You will have an exact idea of the timeline only when you’re clear about what you want. For instance, if you wish to have simple chatbot translation abilities then 3 to 5 months are enough. 

However, if you’re aim is to have a warehouse AI agent that can sort the orders, dispatch them, label them based on categories, and create inventory reports, be ready to wait for 9 to 12 months. Such complex AI apps have loads of components to work on. 

Must Read: What are AI agents? Types & Benefits

If you want a complex AI app ready in a short time then increasing the team size is a viable method. An experienced AI development team can help your project stay on track and meet those deadlines!

Conclusion

Investing in AI app development is a strategic move that can drastically impact the bottom line of your business. By harnessing the power of AI, you can boost team productivity and customer engagement while giving you a competitive edge. Before you dream achieve goals through an AI app, partner with a domain expert. 

Ampcome is a leading AI development company with a proven track record of developing inventive AI apps that deliver results. From conceptualization to development, its team of AI developers adopts the best AI development practices and modern AI technologies. We can help bring your vision to life. We make sure that your AI app is built to the highest standards and meets your needs. 

Thinking of developing an AI application? You don’t have to do it alone. Contact Ampcome today to discuss your AI projects.