What Does AI App Development Cost?


Machine learning and artificial intelligence have become important aspects of this rapidly moving forward world. Many big AI app development companies are stepping up to become a part of this revolution. These organizations have realized the benefits which both of these technologies, deliver and are ready to furnish them for further upliftment.

If we discuss these terms with a non-tech savvy or a layman, they might get confused between Artificial Intelligence and Machine learning. Although machine learning and artificial intelligence are very much related to each other; they are still not the same thing.

It is worth understanding the distinction between the two of them.

Dogtown Media AI bot development! firm
Dogtown Media AI bot development! firm

Artificial intelligence focuses on computer systems that are capable to perform human-like tasks. It is significant for visual perception, decision making, speech recognition, and more.

While machine learning, is a subset of AI or you can say, a sub-field of AI, which incorporates various technologies. Machine learning operates by processing large quantities of data, recognizing various patterns, and building new and useful analytical models.

So, how much does it actually and precisely cost to utilize artificial intelligence and develop an AI app development cost?
Let’s discover!

The Future Is Now in your hands!

Artificial Intelligence trends are highly adaptable as well as adoptable cause it persuades our lives as it has been adopted by many organizations worldwide.

Routine tasks are providing analysis and creative insights from every vector in the industry from automobiles to insurance to healthcare.

E-commerce App platforms take benefit of the ML algorithms to facilitate the buying process and customize their effect according to customer’s behavior.

Machine learning Chatbots are proven to be quite effective and significant at generating and following up the leads. They offer an enhanced experience for the clients.

With the blend of AI solutions in business, they are focused to make accurate predictions to facilitate business processes.

The Different Phases of Artificial Intelligence Project

The technology has enabled computers to adapt themselves to new inputs and perform the required actions better with time.

AI technology has use cases across several functions, for instance- marketing, retail, supply chain management, sales, customer support, IT, manufacturing, and more.

But does it take place in one single phase?

No, it doesn’t. It functions on the process of “learning” by “experience”.

So, what are the different phases of how Artificial Intelligence works?

Here, we will throw some light on the leads on the process of AI.

The cost of a project depends on the work being done.

The process involves different phases to develop an AI product which is as follows:

  1.  Discovery and Analysis Phase

This is the base phase of every product development. The purpose of this phase is to derive a feasibility study and to find out the aims of the project and the business. Analyzing the client’s business processes, data assets, and current metrics defines success factors, a budget, timeline which are needed to be well-documented.
If everything needed is available in the right format then this phase takes around 5-7 days on average.

2) Prototyping Implementation

  • Build a business model that allows professionals to validate requirements and design the product.
  • The cost of incorporating AI in apps depends on this phase.
  • Prototypes are flexible to adjust and cheap to produce.
  • Generally, the prototyping development costs are budget-friendly and come under the range of $23000- $25,000.

3) Minimal Viable Product (Mvp)

Real product development takes place in this phase. All the functional attributes are developed based on the prototyping phase. MVP relied on the actual data given by the client and is tested by a group of real customers.
The average MVP cost varies between $30,000- $100,000 depending on the size of the project and its complexity.

4) Product Release

This is the last stage where the actual product is released in the market with full functionality.
The end product has minimum risks.
The cost of this phase is calculated during the early previous stages.

Factors that Affect the Cost for Artificial Intelligence Development

The app-building price can be estimated in the early phases of the development.
But still, there reside some factors which may affect the development price.

  • Data Issues

Large sets of data are used to get an accurate relationship between the input and the output features. The data must be easy to understand and operate with i.e. it must be well-organized and stored in the right format in the warehouse. It is done by the ETL process.
The unstructured data creates more complexity while increasing the development cost.
Data is sent for tidying, cleaning, and conversion. It functions with missing, extreme, and unexpected values, dealing with outliers, obvious errors which could come, and so on. The whole class of ML- algorithms are built to make use of this kind of data.

  •  Artificial Intelligence Algorithm’s Performance

Sufficient algorithm performance is another important factor in a cost-effective project. High-complexity algorithms need a round of tuning sessions, thus increasing the final cost.
Why data processing and algorithm performance is significant to decide the AI project costs?
It is very easy to understand that all AI modern applications are based on data and its learning process. So, if the data is processed slowly, it will eventually consume more time to reach and teach the neural network of the system.

How much does Artificial Intelligence (AI) project cost?

If you are worried about the cost and you believe that developing a machine learning costs, and an AI app development will cost you a fortune, then you are completely on a different path.
Nowadays, it’s not true in any way that developing an AI-driven app will cost much comparatively.
Well, it varies from organization to organization and also depends on the complexity and size of the project.

Previously, only big brands like Google, Apple, and Microsoft were able to afford it but now a large number of companies are offering their services.

Prices of different AI projects-

  1. The app for the lower-level complexity with a smaller attribute list can cost around $40,000 for one mobility platform.
  2. The app for medium-level complexity with required medium features costs around $50,000- $100,000 for any of the one or two mobility platforms.
  3. However, in the case of high-complexity with large features costs up to $150,000 and above for more than three mobility platforms.


Artificial Intelligence in mobile apps has changed the mobile app development trends. AI has use cases across several industries like healthcare, insurance, automotive, financial and the list goes on.

They have enabled more convenience but when it comes to the development of the artificial intelligence apps, consequently, the costs become a significant factor. It varies on the features, complexity, expertise of the developer as well as development hours.


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