Nowadays, artificial intelligence is one of the most successful inventions of all time. The idea to develop Artificial intelligence software is revolving every business mind and even most of the online businesses are up and running with it. This is a great feat to transform your business and generate significant revenue and customer base.
No matter who you are targeting, AI software are accepted with open hands among all the customers and tech enthusiasts around the globe.
We are living in a world where the fast-moving tech scene is the future and marketing is dominating with artificial intelligence (AI). Ruling the whole of 2023 in changing business operations and eliminating the time for repetitive tasks, AI is ready to enter 2024 with style.
The big question arises in the face of companies’ efforts to take the complete leverage of AI’s power: “How Much does it Cost To Build Artificial Intelligence Software in 2024?”.
In this article, we will discover the complete cost of Artificial Intelligence software development in 2024.
Estimated cost of developing Artificial Intelligence software in 2024
Developing Artificial Intelligence software cost may still be a surprise as for each requirement, the cost may vary. As an estimate, the AI software development cost can rise up to $400,000. It is essential to understand that this is just an estimation. To get a better understanding of cost, you need to closely understand the project requirements and various factors like project type; development and so on can majorly affect the cost of AI software development.
The following is a rough estimate for different kinds of AI projects:
- AI project on a small scale. The cost might range between $10,000 and $100,000.
- AI Project on a Medium Scale. The cost range from $100,000 to $500,000.
- AI project on a large scale. Undoubtedly, sophisticated healthcare diagnostics, autonomous vehicles, and advanced natural language processing systems can cost anywhere from $500,000 to $9,00,000.
- An enterprise-level AI project. An organization with an extensive AI initiative may invest more than $9,00,000.
If you want to get a perfect estimation of software development cost, it is best to reach out to an AI development company.
While you consult with the professional, it is important to uncover every detail of the project, so that you do not receive any additional cost surprise from the development team.
Crucial factors that influence the cost of AI software development
Type of Project
The first step is identifying whether you require a custom or off-the-shelf AI solution. For a custom solution, you would have to build the AI from the ground up and train it to accomplish your objectives. By contrast, off-the-shelf artificial intelligence is a set of algorithms pre-structured for a particular purpose. Integrating these into your business operations and molding them accordingly is possible.
For an AI solution to be successful, it must meet the business’s expectations and specifications. From ideation to deployment, the process requires time and effort. ERP software, for instance, often takes a long time to customize. The cost of custom AI development can easily range from $5000 to $150,000.
Requirements for data
AI depends heavily on data. The amount, quality, and availability of data needed to train and fine-tune AI models directly affects costs. Time and resources are required to collect, refine, and organize data, which increases overall project costs. Infrastructure costs can also be affected by projects requiring a large amount of top-notch data.
Development of advanced AI technologies
AI development relies heavily on high-speed hardware, specialized software, and computing resources. Considering the cost impact of cloud-based solutions versus on-premises hardware is essential. The infrastructure cost might increase for advanced AI projects due to the high demand for computing power.
Features to integrate in AI software
The features of AI solutions make them different from other solutions. Some features may be included, and others excluded based on the task requirements. For example, when you need to generate texts or answer questions, you will need to use natural language processing. The same applies to deep learning, which is part of machine learning. In addition, you may want to integrate speech and image recognition into your AI system.
However the feature is implemented, it will significantly impact the development cost of AI. As a result, AI processing is only possible if it relies on industry-trusted features. The cost of these features adds up in the end.
Hardware Costs
Whether you build AI software in-house or contract out to a third party, hardware will be an expense. Hiring a company to develop AI software does not normally include this cost. The only aspect they handle is software development. Nevertheless, running the AI algorithms requires computing power to process and analyze the data. To support the process, it needs to handle large computations requiring a powerful and specialized infrastructure. As a result, you will need to spend money on hardware and AI software development.
Development team
The next crucial factor that affects the cost of development is team or labour involved in development. Choose the team that offers AI & ML Services. Small businesses can spend over $320,000 annually on their AI development team.
AI development teams will have many essential roles to fill. Team members generally include data scientists, machine learning engineers, artificial intelligence developers, and software developers. Skills and experience affect the cost of each member. It also depends on how many team members are assigned to your project.
Maintenance and management
AI software management can be handled in-house or outsourced. Outhouse teams may cost more than in-house teams, but they eliminate in-house costs, such as salary per member.
It is one thing to build an AI but another to maintain it. It may be possible to train the algorithm to process data and do computations, but the team will be expected to maintain the AI and ensure it meets business requirements. Consequently, performance and efficiency are maximized.
Duration of the project
Last but not least, AI development costs are based on how long it takes to develop your software. All of the factors discussed above will influence the duration. An AI built as a basic version will be cheaper and take less time than one built as an MVP.
An in-house or outsourced ML Services provider that works longer durations will have to dedicate more time and effort, which will result in a higher price.
Conclusion
Developing Artificial Intelligence Software is a great investment to transform and automate your business operations. Cost to build the software in 2024 can vary with various factors like type of project, development team and so on. It is highly recommended to contact professional AI development service provider to deliver top class AI solution that fits with your business.
Guest article written by: Albert Smith is Digital Marketing Manager at Hidden Brains, a leading software development company specializing in mobile & web apps. He provides innovative ways to help tech companies, startups and large enterprises build their brand.