How Much Does It Cost To Develop an AI-based Mobile App?

Updated on Dec 20th, 2023

AI App Development

AI is the trending word of the decade, you add it before anything, and suddenly that product/service becomes fancy and intelligent. People are fascinated by artificial intelligence and its application because it simplifies the overall process with personalized insights. Everything around you are now connected to AI directly or indirectly.   

For instance, which device are you using to read this blog? Be it android, iOS, or windows, it must possess a virtual assistant (Cortana, Siri, Google Assistant, etc.) that works on your command. How do you think it is possible? The answer is technologies such as AI and ML. 

The market is brimming with various mobile applications utilizing the power of AI to offer enhanced services to the users. Artificial intelligence is a modern approach to developing mobile apps that delivers more than just a solution.

Believe it or not, mobile applications based on artificial intelligence technology are now a part of our lives; people are more dependent on them than ever. Since the human mind’s attention span is short, we always want something new. AI helps us in creating unique solutions to keep people entertained. Keeping all these insights in mind, people always think it must be expensive. Well, keep reading to find out the cost of developing an app based on AI.  

Market Stats of Artificial Intelligence

The last decade has given us a number of innovative solutions, and a majority of them have involved the use of AI. Hence, in a way, it can be said that the software industry is booming with the help of artificial intelligence. The reason for the increased use of AI and related technologies is that they reduce the effort, time, and cost in the overall development of a mobile app.   

The current market forecast of AI-based application development projects growth at the rate of 22.5 percent CAGR between the period 2020-2025. The overall market is expected to be valued at 580 million US dollars by the year 2025.  

The world is creating apps at a massive rate; these apps and the process generate a ton of data to be managed. Hence, it is fair to say that big data is leading the software industry. Apart from data management, these data sets are used to learn about the users and present to them the product or services that fit like a glove with their expectations. It all happens because of the massive adoption of NLP technologies.  

In terms of types of applications that are in demand or will be in demand between the period of 2020-2025 is asset tracking apps. Companies all over the world are becoming more concerned with their resource management; AI helps them in keeping track of their assets and reducing the cost of operations. However, this sector still has some issues to deal with, but overall, it’s the perfect genre.   

Business applications of AI have been more in demand over the last couple of years as businesses have realized the true potential of AI-related technologies and the benefits which come along with AI.  

Integrate AI in Mobile App

Factors Which Determine the Cost of Overall App Development with AI 

When you decide to convert an idea into a reality, it does consume some resources, time, cost, and many other things. Any app development process takes its course in different phases based on certain parameters. The overall cost depends on each phase of the development process, as every phase is interrelated.  

Even after the development and delivery of the mobile application, it requires investment in marketing, promotion, distribution (in some cases), and maintenance. However, there are certain mobile app development companies that offer free maintenance for a certain period after the delivery. Let’s identify the factors which fluctuate the overall cost of the development process.  

1. Getting the Business Goal Right 

The current market scenario displays a spectrum of business models everywhere. This stage must be considered the initial and most important stage of the development process as it involves market research and planning that will affect the future of the app. AI apps are somehow different than normal applications; they require extra care during the development phase.  

The market research that will guide the further process should be conducted diligently. Now you must ask where the involvement of the money is? Doing market research to lay the foundation of a fabulous AI-based app requires time and money. If you have an in-house team, that’s good, but if you want to hire a marketing firm, it involves money. On the other hand, there is a third option; you can directly purchase a market research report on the web, which is genre-based and they deliver fact-based data.  

2. Calculating the Variables

App development based on artificial intelligence technology consists of a ton of variables. The number of these variables depends on your expectation and the potential users. These variables consist of:  

  1. Number of features in the app  
  2. Types of AI  
  3. Platform Selection  

a. Number of features in the app 

When a user thinks about using any app, the first thing he/she checks is the list of features. The probability of them using the app depends on the compatibility of the features with their requirements. On the other hand, integrating features requires an expensive tech stack.  

For instance, suppose you want to develop a laundry app for the users. It must have a list of basic features such as login, account, payment, etc. Now, when we introduce AI in the app and integrate a feature that calculates the date for the next laundry order based on the user’s preferences or past purchase history, it revamps the cost. The same scenario will be repeated with every other feature. Let’s take another example. In case you want to deliver the users the feasibility of location tracking, it will involve the integration of Google Maps API and several extra hours.  

However, it doesn’t mean your app should have a fewer number of features; instead, it should have the features that satisfy its founding idea and vision.  

b. Types of Business Application of AI

Every industry has its own processes; some sell services, others manufacture products. Any AI-based app should have the right application of AI that fits with the app’s business requirements. Here are some of the business applications of AI that you might want to integrate into your app.  

  • Process Automation: This application is used in automating a whole business process such as assembly lines, app testing, etc.  
  • Machine Learning: It learns previous experiences and creates accurate results. It is mostly used in service-related businesses.  
  • Voice Recognition: It’s used to recognize the voices of users to perform different tasks. It also helps in performing a series of connected tasks with voice commands.  
  • Machine Vision: Widely used in the healthcare sector, it is used to gather insights into imaging-based automatic inspection and analysis.  
  • Chatbots: This is used to either manage the customer’s queries or the whole operation in some cases.

c. Platform Selection

When it comes to android users and iOS users, the world gets divided into two teams. Both of them like their platform better than anyone. Makers of the applications have to choose the platform while building the app based on these factors. Apart from the user base, each platform-based development has its own cost as the tech stacks, features, etc., differ from each other. However, you can always choose the third option and develop a cross-platform app, but it will be a little more expensive than single platform app development.  

Ai Based App Development

3. Development Phase 

The development phase should be started only when you are sure about all the variable factors. However, they can change even during the development process. The cost involved in the overall process will also depend on the process being followed by the hired development partner. Every company has a different development sequence that allows them to deliver accurate results.  

In the case of Matellio, we have one of the specially designed development processes that expedite the development process of AI-based app development. The process covers every minute detail and factor that may affect the course of development. Here are the essential components of the process that allows us to deliver flawlessly engineered AI-based apps.  

  • Software requirements specification (SRS): It is a written document that enlists every minute detail of the software or application to be developed.  
  • Design: when the requirements and deliverables are discussed and finalized, we move towards the design of the application.  
  • API: It is an integral part of app development.  
  • UI: User Interface layout and design.  
  • Development: After all the variables are finalized and locked, our proficient developers move work on the final development.  
  • QA: Quality analysis is mandatory as it identifies the errors and bugs and directs the process onto the right path.  
  • PM: Our experienced Project management team keeps every process on track with diligent monitoring and supervision.  
  • R&D: Research and Development gives us an edge to meet the client’s requirements.  

4. Application’s Complexity 

Every person has a unique process of thinking; the same applies to the mobile application; each project is different. When you truly believe in your vision and are determined to deliver the users a unique experience, you want to make the app more enriched that involves lots of tech, time, and cost. Let’s understand the level of complexity and the number of hours involved in the app development process.  

  • Simple Apps: The AI-based apps with generic features and tech will take around 350-450* hours to complete.  
  • Moderate Apps: These apps are based on the custom requirements of the clients and consist of some advanced features. They usually take between 500-800* hours to complete.  
  • Complex Apps: These apps consist of multi-language support, custom animations, and advanced features. They take around 800-1500* hours to complete. 

5. Team Requirements

The desired team size will depend on the exact requirements of an app. Any mobile application based on artificial intelligence has a number of uses and implementations. In order to develop a flawless mobile app, you need to hire a team to execute the process. Hiring a team will cost you money; however, you can decide to hire a team as per the requirement of the project.  

At Matellio, we have resources with diverse backgrounds and vast professional experiences that give us an edge in delivering optimum quality. Along with a diligent team of engineers and experts, we offer a range of hiring models that delivers the feasibility of hiring the resources based on the need. It not only saves money and time but also enhances the overall quality of the project. Our app development team consists of these members.  

  • Project Manager  
  • System Analyst  
  • UI/UX Lead  
  • UI/UX Designer  
  • Software Developer (Technology)  
  • Senior Software Developer (Technology)  
  • Senior QA Engineer  
  • QA Engineer  

Factors that Delay the Development Process 

A development process involves a ton of planning, but sometimes, the planned roadmap doesn’t work due to some factors. The generic time of any app development process varies from 1 to 3 months, but these factors can elongate the period. Let’s understand these factors.  

Advanced Technologies: AI, ML, and various other advanced technology give your app a unique identity in the market, but it also slows down the process. The reason is simple, these advanced technologies are complex in nature and take time to integrate into the application, but as they say, patience is the key.  

Industry Based Differences: Any app which is being developed for a particular industry may consist of various standards and regulations to comply with, thus, increasing the time and ultimately the price. For instance, an app for the food industry will have a different set of rules as compared to the app for the healthcare sector.  

Changes in Between the Development Process: It is one of the main reasons why some apps take more time and capital to develop. The client may ask to make a change in-between the process, causing it to pause and restart, which consumes time and money.  

App Development With AI

Ready to Make the App of Your Ideas? 

Artificial intelligence has an exciting future in terms of qualified opportunities. The world is moving towards automation which involves heavy use of artificial intelligence technologies. If you think the mark is saturated, think again! The global market will always have room for new ideas which fulfil the expectations of the customers.  

Matellio has experience of more than a decade in developing mobile applications for various genres of the global market. We have developed several AI solutions or AI-based mobile apps with commendable responses from the clients and their users. We offer customized solutions at affordable prices. Get an exact quote for your dream app development. Fill out the form now! 

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