Today, everyone wants to leverage artificial intelligence. However, the high AI app development cost becomes challenging for companies with limited resources.
If you relate to this scenario, fret not. It’s possible to optimize AI development cost with proven tactics. That’s how you can extract the best output from the USD 184 billion artificial intelligence market.
In this blog, you will learn two major things:
How much does AI software cost
Proven ways to optimize your budget
So, scroll ahead to get valuable information to help you confidently plan your next AI project.
Table of Contents
How Much Does AI App Development Cost in 2024?
Observe one thing about software development – the cost varies from project to project, and several factors impact the budget.
Here are a few main ones:
Complexity
Team size
Tech stack
Engagement mode
Methodology
Location
Risk mitigation
The same is true for AI apps. You will never find a fixed value for AI app development cost. However, a general range can help you plan your budget.
So, get this – the cost of developing an AI app generally lies between USD 30,000 – 150,000+. This cost is comparatively higher since artificial intelligence is more complex than traditional software.
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To simplify things, consider three complexity levels:
Basic
Average
Complex
Basic AI apps are simple platforms with limited functionality. Chatbots are ideal examples of such an application. On the other hand, average AI apps have functions like image recognition or NLP.
The following table will give you an idea of the general range of these three categories.
Level
Range (USD)
Simple or Basic
30,000 – 60,000
Medium or Average
60,000 – 150,000
Complex
150,000+
If you outsource AI app development, it’s possible to finish a basic project in 1 – 3 months. For building an average app, you can require 3 – 6 months.
Complex AI apps can need 12+ months for completion.
AI Development Cost Based on Types
Generally, there are four categories of artificial intelligence-based apps:
Native AI
Hybrid
Cross-platform
AI-integrated web
The AI app development cost is different for each type. Let’s understand the meaning of each category and the individual price range.
Native AI Apps
As the name suggests, these apps run on a specific operating system. For instance, Google Assistant is an AI app with deep integration into the Android platform.
It can access the device’s sensors, microphone, and software to use the resources efficiently. Here are the main benefits of native AI apps:
Optimal performance
Offline capabilities
Access to device functions
Platform-specific build
The AI development cost for this type is in the USD 50,000 – 150,000+ range.
Hybrid AI Apps
These applications are a combination of native and web-based types. They have a web view component and a single codebase.
This way, AI developers can create apps that run on multiple platforms, such as the web, Android, and iOS, and they can run offline.
Examples of the hybrid AI type are e-commerce, fitness, and social media apps. The main advantages of this category are as follows:
Fast time-to-market
Cost effectiveness
Web-based features
Easier updates
The practicality of this type influences its cost. So, its AI app development cost is in the USD 30,000 – 100,000 window.
Looking for a detailed guide on AI software development? Read our blog, which contains topics ranging from the best AI strategy to the development lifecycle.
You can feel these apps are similar to the previous type. However, there are some differences.
Cross-platform apps can be hybrid or web-based. So, all hybrid apps are cross-platform, but not all cross-platform apps are hybrid. The main intention of such applications is to provide a consistent user experience (UX).
TikTok, Pinterest, and Tinder are some popular cross-platform AI apps. This category has the following positives:
Wide reach
Less development cost
Easier maintenance
Diverse market accessibility
The AI app development cost for this type lies in the USD 30,000 – 80,000 range.
AI-integrated Web Apps
This type is the least expensive option among the four. Simply put, these applications need a web browser to function.
So, if you have access to a browser on any device, it’s possible to use AI-integrated web apps. You can leverage AI algorithms to perform several tasks through these applications.
Grammarly, ChatGPT, and Waze are some popular names in this category. Here are the key benefits of AI-integrated web apps:
High efficiency
Increased revenue
Natural language interaction
Personalized recommendations
Generally, you can develop these apps in the USD 20,000 – 70,000 range. So, if you’re a startup that wants to build an app with AI, this option is less costly.
Note: All the values are subject to change. You should always discuss an IT vendor’s custom quote before proceeding.
Factors Influencing AI App Development Cost
Developing an AI application is slightly different from the conventional process of building software. The major element in this category is artificial intelligence, so most of the aspects revolve around training the AI model.
Below are some key points that have an impact on AI development cost.
AI Model Complexity
Many sub-factors define the overall complexity of an AI model. For instance, you need to choose between machine and deep learning before starting an AI app project.
Some applications can require custom algorithms that need extensive research. Also, data requirement has a colossal impact on the cost of AI app development. Overall, the complexity of an AI model is directly proportional to the budget.
Features and Functionality
Here are the core features that an AI app can have:
Data collection
Data storage
Data analysis
The cost will increase significantly if your app requires functions like natural language processing, predictive analysis, and more.
In addition, the features also include the design of an engaging UI and integration with third-party APIs. So, consider these aspects when discussing the AI app development cost with your vendor.
Data Acquisition and Handling
Most companies overlook the cost of acquiring data from different sources. Since data is the backbone of your AI model, you need to consider the following activities:
Noise removal
Handling of missing data
Data normalization
Automated labeling
Naturally, these components will increase your AI app development cost.
Miscellaneous
This section mentions the general factors that influence the cost of building an AI app. Note that they are common for conventional application development as well:
Tech Stack: The cost of hardware and software requirements to build the AI application has a major influence on the overall budget
Scalability: You can need additional infrastructure to create an AI app that handles an extra volume of data
Regulatory compliances: This cost depends on your industry and can be variable
Basic knowledge of ‘AI app development cost’ is crucial for planning. However, it’s vital to know some handy tactics to optimize the expenses.
Generally, the cost of AI app development ranges between USD 30,000 and USD 150,000+. The exact cost of your application depends on various factors, such as its complexity, tech stack, data handling strategies, and features.
So, you can optimize the cost by prioritizing the essential functions in the beginning. Also, using open-source tools, reducing data acquisition costs, and using a pre-trained model can help reduce expenses.
An experienced offshore company with a team of vetted AI developers can help build an excellent app. Moreover, to build an app with AI at reasonable costs, you can contact us and benefit from our dedicated assistance.
Frequently Asked Questions
1. How to price an AI app?
You should be well-aware of the types of AI apps to understand their valuation. For instance, native apps are comparatively costlier than other categories. On the contrary, AI-integrated web apps are the least expensive to develop. In addition, you should also consider the tech stack, developer experience, data handling methods, and algorithm complexity when determining the AI app development cost.
2. Where can I find AI developers who charge reasonable fees?
Offshore locations like India, Ukraine, Poland, and Vietnam have top-quality organizations that employ AI developers. To get dedicated programmers at reasonable rates, try connecting with Clutch-verified AI development services.
3. Do you provide AI software development services?
Absolutely! Our AI developers offer services like NLP, AI/ML consulting, RPA, and Generative AI solutions. We have flexible cooperation terms and a team that understands your work culture. So, you can always reach out to us for tier-one AI app development.
