Artificial intelligence is advancing to become an integral component of a company’s technology foundation. The benefits of AI are substantial, but unfortunately, the costs can be, too. In this article, Dan Calugar gives you an idea of the estimated costs of implementing an AI solution.
Costs can vary greatly, depending on whether you are implementing one AI solution or making it part of your digital transformation. Getting a basic idea of what types of factors impact AI solutions and how much they generally cost is the first step towards adopting AI.
AI depends on large amounts of data to study historical patterns and create future models. If not enough data has been collected, additional data will have to be acquired either through a third party or through internal data collection. This will result in higher development costs. Data quality is also an issue. Data must be collected and stored in the correct format for your AI solution. Your AI development team will review your in-house database to ensure your data is complete and properly formatted for easy transfer. If you run into data issues, your AI costs could potentially be doubled.
Algorithm accuracy is another factor that could impact your AI solution costs. Depending on the industry and its unique business requirements, an AI algorithm’s margin of error can vary significantly. The higher the desired performance rate, the more work is required, which will impact costs. Algorithm requirements can raise your AI costs by 15-30%.
Custom Vs. Pre-Built Solutions
Whether you choose a third-party AI solution or have one custom-built for your business will significantly impact your costs. A custom AI solution will have a high one-time fee, then only maintenance and operating costs. A third-party solution will be less expensive upfront but will likely require annual renewals. In either case, the cost of your AI implementation will vary significantly based on the features included. However, there are some general guidelines available. The average cost for a custom AI solution is estimated to be between $6,000-$300,000. A third-party AI solution can cost up to $40,000.
The type of AI your company decides on will also play a key role in determining costs. Chatbots and analysis systems are two of the most commonly used AI solutions. Chatbots can play a vital role in your AI solution. They can help streamline your business and improve your customer service. Costs will vary depending on the exact features of a chatbot. But a custom chatbot can cost from $6,000-$18,000, whereas a third-party chatbot can cost up to $1,000 per month. An AI analysis system interprets large quantities of data and suggests the next steps. One popular use for an AI analysis system is to examine SEO results and create data-backed determinations for future spending. AI analysis systems can cost anywhere from $600 per web page to $35,000 for a custom-built system. AI implementation costs can vary greatly. You may have to make some tough decisions on your company’s true AI needs to determine the final price accurately.