With AI being the buzzword across industries, everyone seems interested in determining the cost of AI solutions.
But is there a definite answer to how much does artificial intelligence costs?
Unfortunately, it is difficult to put a definite price tag for AI solutions. Nonetheless, in this blog, we will be covering most of your queries and concerns regarding the cost of artificial intelligence. From determining the average rates on different AI solutions to assessing the factors that influence the cost of AI, we will try to address various questions that may be boggling your mind.
So keep reading to know more about the cost of artificial intelligence solutions in 2021!
How much does artificial intelligence cost for Startups, SMEs and Enterprises
Remember, AI involves various tools and processes like machine learning, computer vision, natural language processing, predictive analysis and much more. This means that it’s not wise to put a generalized tag on AI solutions; rather, a more discerning approach is to segregate solutions and see what each may cost on average.
Now moving on, in 2021, you can pay anywhere from USD 0 to USD 300,000 or more for different AI solutions. The AI solution you need maybe a third-party software like Converse Smartly from Folio3, which is basically a natural language processing solution. Alternatively, the solution may be a custom platform you would want to build by a team of developers and data scientists exclusively for your business, such as a custom-made computer vision platform for your medical business needs.
Nonetheless, if you opt for a third-party off-the-shelf AI platform like Converse Smartly or a pre-built chatbot, you should expect to pay anywhere from USD 10,000 to USD 40,000 per year. If you are lucky, you may even find a free platform like a free chatbot that suits your business needs (although free offerings always come with trade-offs). Contrarily, if you wish to go with custom AI solutions, the costs may skyrocket anywhere from USD 10,000 to USD 300,000+. The cost would include the development and rollout cost.
Factors influencing the cost of artificial intelligence?
Now that we have the average costs of AI solutions let’s take a closer look at some of the factors that influence the cost of AI solutions.
There are a number of factors that influence the final cost of AI platforms, ranging from your preferences for custom solutions to the type of the solution required (virtual assistance, analytical systems, etc.).
Let’s see some of the essential factors in more detail;
Some of the dominant AI solutions companies use to streamline their business processes and enhance efficiencies include;
The chatbot is one of the most widely implemented AI solutions by businesses, especially ecommerce stores. Chatbot assists businesses to automate customer support interactions for better customer loyalty and branding.
The AI chatbots can be integrated on the website or social media platforms. There is a wide variety of pre-built chatbots available in the market, and most of them are offered at competitive pricing. These AI-powered Chatbots can perform various tasks besides customer support, including; product recommendations, order updates and others.
– Analytical systems
Analytical systems enable companies to store and process large quantities of data more efficiently and use it to make intelligent business decisions.
These systems can help companies utilize customers’ data for effective sales and marketing initiatives like (SEO, paid marketing, email marketing, etc.). Analytical systems not only help improve marketing campaigns but also significantly lowers the marketing spend, increasing the business’ ROIs.
– Virtual assistants
Siri, Alexa, Cortana or Google Assistant are some of the most powerful and widely used virtual assistants that enable companies to complete everyday business tasks more efficiently. Apart from these mainstream virtual assistants, companies can also request custom virtual assistants to help them with effective utilization of business data, engage customers or employees’ management.
The cost of different AI Type
Your choice of type of AI solution will have much impact on the final cost you pay for the solution. To give you an idea, you may be paying anywhere around USD 6000 for a custom chatbot, whereas custom data analytics platforms start at USD 35,000.
Apart from the type of AI solutions, the AI features you need also influence the final cost of the solution. Even if you are going with an off-the-shelf platform, you will need to choose the solution that offers the right features you need. For example, you may go with a simple chatbot to provide customer support service, or you may want a powerful chatbot that can be integrated with your business CRM. Obviously, the latter will cost you more.
Similarly, you would be churning out fortunes if you need the most powerful and advanced data analytical system like IBM Watson, or you may opt for a nominally priced medium-end solution from the market.
Some of the other factors that influence the cost of AI solutions include;
- Data format
- Data processing speed
- Data visualization
- Data storage
- Data structure
- Accuracy rate
- Dashboard requirements; and
Is AI worth the price tag?
Yes and no.
AI and related technologies, including machine learning, computer vision, natural language processing, and others, brings immense value to businesses. By integrated AI solutions, businesses get to automate crucial business processes, maximize efficiency, and build robust marketing strategies to boost sales and revenues.
However, the cost of implementing AI solutions can be an impeding factor.
The key is to understand your business needs. A vast majority of businesses may not need custom AI solutions or even premium AI platforms. The best strategy is to start low and build up the capabilities over time as your business grows!
Muhammad Imran is a regular content contributor at Folio3.Ai, In this growing technological era, I love to be updated as a techy person. Writing on different technologies is my passion and understanding of new things that I can grow with the world.