App Cost Calculator

How Much Does It Cost To Develop An AI App?

By Darshak Doshi

September 16, 2024

Summary
Since AI plays a critical role in almost all business industries, the requirement for applications with AI functionality will also rise in 2024. It is therefore important for companies that seek to harness the power of AI apps to assess the costs of deploying these applications. It is difficult to provide an average price tag for the development of an AI app since the price depends on several parameters including, but not limited to, the app’s complexity, the degree of customization, the technology used, and the AI App Development Projects. This blog describes the following elements, providing a detailed overview of what these costs could entail for an AI app from a basic AI solution to a generative AI model.

Understand the Cost to Develop an AI App

AI has become integrated into various industries globally. Firms from the healthcare industry to the financial industry have implemented AI features to help improve efficiencies and the user experience and streamline business processes. In 2024, AI app development remains an essential area of interest for organizations that need to incorporate machine learning, NLP and other AI into their software.

The question remains: What is the average price to create an AI app? The answer to this question is not quite simple as it depends upon several factors. This blog will navigate you through those cost aspects, and enable you to estimate the cost to build an AI app accordingly.

Statistics of Cost To Develop An AI

Developing an AI app in 2024 comes with several complexities, features, and scope that influence the cost. Basic AI apps with simple features and quick dev timelines can cost $20,000 to $50,000. Intermediate AI apps with advanced features can cost $50,000 to $100,000. Advanced AI solutions that use cutting-edge AI technology can cost between $100,000 and $300,000 or more.

Planning, research, UI/UX design, programming, testing, and maintenance are key phases. Ongoing maintenance is also a factor to consider, with annual costs ranging from $10,000 to $50,000.

Factors that Define the Cost of AI App Development

In AI app development, a common question is, ” Cost to Develop a Generative AI App” The cost of an AI app depends on the project’s specific cost factors. These include the AI model’s sophistication, the need for specific features, and the app’s roles.

For example, a simple AI chatbot is cheaper to develop than an AI app with image recognition, predictive analysis, and machine learning. This shows that an AI project’s development level is proportional to the time and resources needed. These factors determine the project’s cost. Customization often raises the development cost. This is especially true for businesses seeking an AI solution tailored to their industry.

Organizations planning to build a custom AI app in 2024 should expect to spend $20,000 for basic solutions and over $300,000 for custom, advanced apps. Businesses seeking to use AI should hire a professional AI firm. They can advise on the best and most cost-effective technologies for the project.

Cost and AI Technology and How They Relate

AI app development entails the use of technologies such as ML, CV, NLP and neural networks among others. The specific AI technology used can impact the overall cost of development in one way or the other. AI models in apps can vary in complexity. Basic NLP algorithms, which let chatbots recognize users’ queries, are cheaper. In contrast, apps that need real-time data analysis use complex, costly machine learning algorithms.

Machine learning applications include training datasets. They also create algorithms that can skyrocket costs. In contrast, generative AI requires more computing power. It is a type of AI that uses training data to create new content (text, audio, images). This is why it is one of the most costly types of AI to develop.

For instance, the Cost to Develop an AI may be $50,000 to $250,000. It depends on the difficulty and performance of AI models used. The more complex the computations and the higher the precision needed, the more development resources you will need.

Customization as an Element in AI Application Development

The other major cost consideration that comes with the development of AI apps is customization. Off-the-shelf AI apps have predefined functions. They are usually cheaper than custom-built AI solutions. Of the available packages, few meet the business’s needs. They lack flexibility, performance, and scalability. In such cases, companies prefer to design unique, expensive AI apps. They are more suitable.

Custom AI app development takes longer than standard app development. It requires a deep understanding of the business’s operations and objectives. It includes creating and training models to meet industry needs. It requires an understanding of AI technology and the industry.

Partner with an experienced AI app development company like The Intellify. They will help you create apps that improve business processes and drive growth. It may raise costs in the short run. But, the long-term gains are worth it. The boost in functionality, performance, and scalability will pay off.

Pre-trained VS. Training your AI from Scratch

Another key factor in estimating the AI app’s cost is whether to use an existing AI model or to train a new one from scratch. Models that are available in the database like TensorFlow or OpenAI also help in cutting down the time and cost needed in development. These models are trained on large datasets. They can be fine-tuned for specific tasks with little retraining. This makes them ideal for business entrepreneurs who require quick and cheap solutions to a given problem.

Despite this, pre-trained AI models may not fit your enterprise’s specific needs, but customized enterprise AI solutions can address them effectively. They may not excel in some specific functions where fine-tuning of the model’s operation is needed.

In such cases, one can create an AI model. This requires data collection, preparation, and model training and tuning. It raises the cost of building an AI app. But, a custom model can greatly benefit your business in the long run.

Custom solutions will also require ongoing training and testing of the AI model to make sure it is performing to the best of its capabilities. This is where a partner like The Intellify comes in handy. They could help soon and assist with the AI app’s growth.

Expertise of Development Team and its Effect on Cost

The development team’s experience is one of the most significant aspects that define the cost of AI apps in 2024. To design complex AI apps, you must involve several roles. They are data scientists, ML engineers, AI experts, developers, and UX designers. All these roles play a part in making the AI app effective to not only operate efficiently but also offer the best experience to the user.

It is crucial to Hire an experienced AI developer team. This will manage risks, reduce mistakes, and ensure high app performance. The senior teams know what can go wrong. They can suggest the right solutions. They also know how to make the app effective and low-cost. This expertise is often costly, especially for complex AI projects. But, it is always justified.

By 2024, the app will be developed with firms like The Intellify, which specializes in AI apps. To get the best return on your investment, work with an experienced team. They will help you create a basic or generative AI app development within your budget and deadline.

The Hidden Costs of AI App Development

Besides the direct costs, businesses should consider indirect expenses when budgeting for an AI app. One such cost is the cost of data collection and cleaning which is very expensive in most big data projects. Data is the primary resource in any AI application, and data collection, preparation, and data curation can be very tiresome and costly.

In many cases, businesses have to buy third-party datasets or invite specialists who can help to properly prepare the data for use in AI development projects.

The other hidden cost arises from the maintenance and monitoring of the AI app after the launch of the app. AI models must be checked constantly to ensure they work correctly. Updates may be needed to provide the app with the latest technologies. This means that businesses can set aside a portion of their budget towards post-launch support and optimization.

Also, depending on the AI app, infrastructure costs might be included. This is the case with cloud storage, data processing, or deploying the app on platforms like AWS or Google Cloud. These costs can grow over time. This is especially true for large-scale AI apps that require a lot of computing power.

Expenses of AI Application Development Till 2024

Here’s a breakdown of the main components of AI app development costs. It will help you understand how they are distributed

1. Initial Consultation & Project Planning

This entails identifying what your business needs, and setting an outline of what the app is going to be and how long the project will take. It can take $5000 to $10000 at this stage depending on the nature of the project that is to be undertaken.

2. Data Collection & Preparation

Acquiring, pre-processing, and preparing data for learning algorithms is vital. But, it’s often slow and costly. They cost between $10,000 and $50,000 depending on the amount and kind of data demanded.

3. Model Development

This phase entails model creation, training, and evaluation. It depends on whether you are using pre-trained models or creating your own. The range of expenses is $ 20,000 to $ 100,000, depending on the model’s design.

4. App Development & Integration

After this, the AI model has to be deployed into the application for it to perform its intended function. This phase also entails the design of the user interface or the front-end, back-end systems and additional interfaces if any. Development costs are within the range of $50,000 and $150,000.

5. Testing & Optimization

It is very important to test the AI app to check whether it is working properly and if it has the best performance. This phase normally costs between $10 000 and $30 000.

6. Post-Launch Maintenance & Support

It is crucial to make updates and provide further support to the app to keep it running smoothly and to respond to the data received. The expenses for this phase are from $5,000 to $20,000 per year in case of different levels of assistance.

The Features Defining the Future of AI App Development Costs

In the future, the costs of AI app development will also change, as with the progress of AI technology. Low-code and no-code AI tools may lower development costs for simple AI apps. This could boost AI adoption by organizations without hiring AI experts.

However, for complex AI, generative AI, and advanced models, we will always need specialized developers. The top AI app developers from The Intellify will lead the latest artificial intelligence trends. They specialize in cutting-edge AI solutions. In other words, it is beneficial for businesses to work with experienced developers so that the AI projects turn out as expected.

Conclusion

In 2024, investing in AI app development is a strategic move for businesses of all sizes. The high initial cost of developing a generative AI App is worth it. It will boost innovation and efficiency in the long run. They depend on model complexity, data needs, team expertise, and deployment strategy.

However, partnering with a reliable agency like The Intellify can help reduce costs. Our skilled developers have 13 years of experience in this domain. We worked with major clients like Microsoft and Oxitec. This has ensured high customer satisfaction.

Ready to transform your software dreams into reality? Contact us today for a personalized consultation.

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Written By,

Darshak Doshi

Written By, Darshak Doshi

With over a decade of experience, Darshak is a technopreneur specializing in cloud-based applications and product development in healthcare, insurance, and manufacturing. He excels in AWS Cloud, backend development, and immersive technologies like AR/VR to drive innovation and efficiency. Darshak has also explored AI/ML in insurance and healthcare, pushing the boundaries of technology to solve complex problems. His user-focused, results-driven approach ensures he builds scalable cloud solutions, cutting-edge AR/VR experiences, and AI-driven insights that meet today’s demands while anticipating future needs.