AI App Cost Breakdown: How Much Does AI App Development Cost?

By RisingMax

January 20, 2023

Self-driven cars to automating customer services with chatbots, artificial intelligence has become an important tool for businesses in different verticals. Businesses worldwide are deploying AI-based software to streamline processes, conduct effective data analysis, predict customer behavior and improve decision-making. However, AI app development and integration is not an easy process. And that’s why businesses want to understand how AI-based apps work and the development cost.

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If your search for “How much does it cost to develop an AI app?” has brought you to this post, then here’s an honest answer for you. “It varies”. The AI app development cost varies depending upon the type of business solutions, app features & functionality, and various other factors.

In this post, we will analyze and evaluate some of the leading factors that impact the AI app development cost. We hope that going through this post will give you a clear idea about the AI project cost and the right approach to get the most out of your AI investment.

Are you planning to develop an AI application for your business? Then, connect with our experts at RisingMax Inc. to discuss your project needs. Our experienced developer team, after carefully analyzing the project requirements, will share a customized AI software cost ASAP. Avail of our FREE consultation services to understand how implementing AI solutions enhance business efficiency and fosters business growth.

Before going deep into artificial intelligence cost breakdown. Let’s understand what the main cost drivers of AI-based business solutions are. 

AI App Development Cost: Main Cost Drivers

Similar to any business software development, there are a plethora of main cost drivers that impact AI software development. In this section, we will discuss some of the major cost-driving factors, such as AI application type, AI app development cost, hourly rates, and others. For someone looking to build their own AI application, understanding these main cost-driving factors assist in finding an average development cost and making better decisions. AI software development cost drivers include the following;

AI Software Type

Based on software deployment, various types of artificial intelligence app solutions are available in the market. Most people fail to understand that AI is a vast concept that includes terms such as machine learning, robotics NLP, RPA, and others. The development cost varies depending on whether you are planning to deploy an AI app solution for voice assistance, process automation, critical data analysis, or face recognition. The overall development cost varies based on the AI software type and its intended purpose.

Level of Intelligence

When it comes to AI app development cost, the level of intelligence of AI solutions becomes a major cost driver. AI software that are capable of handling complex tasks without any human instruction will cost more as compared to apps that require human assistance to complete tasks. AI-based business solutions with high levels of intelligence are capable of handling multiple complex tasks, thus increasing the overall software development cost.

AI Algorithm Accuracy

AI-based business solutions use various algorithms to perform desired tasks efficiently with a certain level of security. A software solution capable of completing a task with higher accuracy and reliability attracts a higher development cost than an AI app with medium accuracy. AI-based chatbots are expected to handle more than half of the basic customer queries and provide them assistance, thus costing low. 

On the other hand, AI-based applications for healthcare can perform various tasks such as health diagnosis, analyze patient health records, schedule appointments, and perform surgery with higher accuracy. Thus, increasing the AI app development time and cost.

AI Application Management

When it comes to AI application management, there are usually two major project management options - In-house and Remote project management. With in-house AI software development, you need to invest in hiring professionals, setting up IT offices, purchasing equipment, monthly salary, and other expenses. 

While on the other side, a remote AI app development team becomes an affordable process as you make a direct transaction without any hidden cost. The overall development cost of the project varies based on which AI app development methodology you choose.

Features of AI Software

The next important cost-deriving factor of AI software development is the features. An AI-based business solution that can easily handle more complex tasks with advanced features is likely to cost more than basic AI software. 

AI Software Development Company

The location of an AI software development company becomes a major cost driver in AI software development. Suppose you hire a USA-based AI development company for your project. In that case, overall development costs might go high as compared to AI development companies in Australia, India, or any Asian country. 

The above-mentioned factors are the major cost drivers when it comes to AI business solution development. With a clear project outline, AI app features, and business requirements, you can have an estimated budget for your project. Further in this blog, we will do an in-depth AI app development cost analysis based on various parameters to estimate the cost of AI software.

AI Business Solution: Cost Breakdown

The table below provides a cost breakdown overview of AI-based business software development. Depending upon the overall development cost of the project, you can see the percentage contribution of different app development phases in AI app cost.

AI Business Solution Phase

Cost Breakdown

AI Consultation

10%

App UI/UX

15%

App Development

50%

Quality Assurance

15%

Maintenance Cost

10%

 

The AI development and quality assurance phase dominate the overall AI business solution cost. Thus, finding an AI app development partner with nominal fees for AI app development and testing can reduce the overall project development cost. Next, we will discuss AI app development costs for various industries.

AI Application Development Cost Based on Industries

Artificial intelligence technology is used in various industries to automate critical business processes, make repetitive work error-free, and enhance system efficiency. For this, the development cost of an AI-based software solution differs for various industries. The table shows the development cost of an AI software solution for various industries with basic features and functionality.

AI Software for Various Industries

Basic AI App Development Cost

Real Estate

Start from $20,000

Supply Chain

Start from $25,000

Insurance

Start from $40,000

Healthcare

Start from $50,000

Manufacturing

Start from $50,000

Banking and Finance

Start from $80,000

 

AI Software Development Cost Based on App Type

Currently, there are different types of AI-based software solutions available in the market. Based on which type of AI software solution perfectly fulfills your business requirements, you can invest in AI software development. Here’s a cost breakdown of basic versions of various types of AI software solutions that are currently popular.

AI Software Type

Basic Version Development Cost

Video/Speech Analysis Software

$25k to $40k

Telemedicine Software

$40k to $50k

Money Management App

$30k to $40k

AI Chatbot

$20k to $30k

RPA Software

$15k to $25k

Machine Learning Software

$45k to $60k


AI App Development Cost Based on Location

The cost of AI software varies based on the location of an AI app development company. However, high AI software development cost doesn’t always mean a quality business software solution. The per-hour cost difference is due to the currency’s valuation and, thus, should not be confused with software quality. Here’s a per-hour AI app development cost in various parts of the world.

Region

Development Cost/hour (approx)

United States (USA)

150

United Kingdom (UK)

100

Australia (AUS)

80

Europe (EU)

70

India

50

 

Use Cases: Artificial Intelligence App Development

As businesses worldwide swiftly adapt to changing technologies to stay ahead of the competition curve, we are seeing growing use cases of AI. Developing custom AI solutions empowers businesses to analyze data effectively, automate business processes, and enhance efficiency. Here we have listed some of the popular use cases of AI software solutions that include;

Banking and Finance

AI-based software solutions are deployed in the banking system to automate auditing, manage finance, perform predictive analysis, identify frauds, find irregularities, and offer users customized services.

Retail

AI-based inventory management solutions empower the retail sector to predict consumer behavior, manage inventory, deliver personalized services, enhance decision-making capabilities, and analyze data.

Healthcare

In the healthcare sector, AI software solutions can make diagnoses, make recommendations, and share accurate predictions. The technology allows healthcare facilities to analyze previous records effectively to provide patients with personalized care.

Supply Chain

Integrating AI software within business processes allows supply chain companies to find shortcomings, share real-time status, negotiate pricing, and automate various processes. From swift receipt processing to automating payments, AI solutions are enhancing various capabilities of the supply chain sector.

Insurance

The insurance sector can strengthen its anti-theft measures and provide customer-focused insurance solutions with AI-powered software. Insurance companies can enhance their decision-making capabilities and offer customized insurance policies to customers worldwide.

Automotive

Artificial intelligence technology allows the automotive sector to make self-driving cars a reality. Estimated travel time, road conditions, predictive maintenance, and swift claim settlement are leading benefits of implementing AI software in the automotive sector.

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Why Choose RisingMax Inc. For AI Software Development?

RisingMax Inc. is an NYC-based IT service provider to businesses worldwide. Over the years, the company has leveraged its development expertise to build advanced AI business solutions for startups and Fortune 500 companies. 

Our development team has hands-on experience with leading AI tools and builds business solutions that solve real-world issues. Our team can swiftly tackle any AI app development challenge and build cost-effective business solutions by taking advantage of our domain expertise.

Here’s what you get, when you hire us for AI app development;

  • Unmatched AI development expertise.
  • Affordable AI business solutions.
  • Incomparable AI development services.
  • Tech prowess.
  • Reliable and secure AI solutions.
  • Transparent pricing policy.
  • 24*7 customer support

AI is a revolutionary force that is transforming how businesses manage their day-to-day operations. Now is the right time to integrate AI-powered software solutions and unlock new growth possibilities.

Are you ready to dominate your business niche with our AI business solutions? Then, schedule a FREE consultation call with our experts at RisingMax Inc. TODAY!!

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