Source – https://www.analyticsinsight.net/
An evaluation of the cost of artificial intelligence in 2021
Technology is developing at an exponential speed. These technological developments are changing every aspect of our lives. Artificial intelligence is the chief factor that is driving technological developments.
Almost every business organization in the world is embracing artificial intelligence. The benefits reaped from AI in business processes are ground-breaking. AI solutions are changing traditional business processes and are driving them towards digital transformation. AI has helped companies amplify their growth, reach more audiences and work with agility.
With the growing technological developments, the cost of implementing them will also fluctuate. So the question is, how much does artificial intelligence cost?
Well, the answer is, it depends. The cost of artificial intelligence depends on a few crucial factors. To determine the AI costs, we have to understand the factors leading to the current pricing.
- The type of software the company is building: Artificial intelligence refers to any device or application which is programmed for decision-making based on the information it consumes, thus mimicking human intelligence. Chatbots and voice assistants, understanding questions uttered in natural language, the CT scan machines detecting tumors and other diseases in our bodies, and the security cameras identifying people from live video footages, everything falls under artificial intelligence. But their costs vary based on their complexity, performance, and the purpose of the software.
- The level of intelligence of the AI application: AI solutions implemented in business operations are described as narrow artificial intelligence, which means that they are programmed to perform a particular task. We can consider an AI application as highly intelligent if it can perform tasks with little to no human instructions. The cost of implementing such technologies depends upon the level of intelligence that the companies expect from the applications.
- The performance of the AI algorithm: Sufficient algorithm performance is one of the major cost factors to consider because accurate predictions require several rounds of tuning sessions, which raises the cost of implementing AI solutions. The higher the accuracy and efficiency of the AI predictions, the more the cost of implementing these solutions.
- The complexity of the AI solution: While discussing the cost of artificial intelligence, it is important to mention the cost of creating proper AI software, with a cloud-driven back-end, ETL/streaming tools, voice assistants, cloud dashboards, and other services. It is of utmost importance to build an efficient AI system since it will be the brain of the company’s technological system, pushing data and drawing insights to make informed decisions.
- The amount of data the AI application will consume: AI devices perform according to the data loaded in the system. It can absorb both structured and unstructured data. But when it comes to cost, structured data are cheaper to work with, especially if there is enough data to boost the AI algorithm’s accuracy.
So, how much does AI cost?
It is a common misconception that leveraging artificial intelligence technologies might cost a fortune. It might have been true in the past, but the scenario has changed with modern technology.
Earlier, only giant tech companies like Facebook, Microsoft, and Google could afford to develop AI-powered software and applications. Thanks to the advent of various affordable tools, libraries, and frameworks, which has made AI more available to small-scale organizations and startups, has reduced the cost of implementation.
Prices of AI solutions based on the different portfolios:
- Prototype development starts from US$2500
- Developing the Minimum Viable Product (MVP) based on the client’s data starts from US$8000 and can cost up to US$15000
- The cost of implementing complete AI solutions may vary from US$20000 to US$1000000
The Future is AI
We use AI technology in our daily lives to satisfy our personal and professional needs. It not only helps businesses by providing creative insights from data analysis and solutions to complex business problems, but it also helps us by automating our daily monotonous activities.
Almost every industrial sector in the world is leveraging AI and machine learning to simplify the business process and expand their markets. According to reports, the global AI market is estimated to reach US$176 billion by 2027.