A cost analysis of artificial intelligence in 2021
Technology advances at an exponential rate. These technological advancements are transforming all facets of our lives. Artificial intelligence is the primary force propelling technological advancements.
Artificial intelligence is being adopted by almost every business organization on the planet. The benefits of AI in business processes are revolutionary. Artificial intelligence solutions are transforming traditional business processes and accelerating their digital transformation. AI has aided businesses in accelerating their growth, expanding their audience reach, and increasing their agility.
With the advancement of technology, the cost of implementation will fluctuate. Thus, the cost of artificial intelligence becomes a concern.
To that end, the answer is that it depends. The cost of artificial intelligence is highly variable and is determined by a few critical factors. To determine the cost of AI, we must first understand the factors contributing to the current pricing.
The type of software that the company develops: Artificial intelligence is used to describe any device or application programmed to make decisions based on the data it consumes, emulating human intelligence.
Artificial intelligence encompasses chatbots and voice assistants that comprehend questions expressed in natural language, CT scan machines that detect tumors and other diseases in our bodies, and security cameras that identify people in live video footage. However, their costs vary according to their complexity, performance, and intended use.
- The artificial intelligence application's intelligence level: Artificial intelligence solutions used in business operations are referred to as narrow artificial intelligence, as they are programmed to perform a specific task. We can classify a fake intelligence application as highly intelligent if it can perform tasks with little to no human intervention. The cost of implementing such technologies is determined by the level of intelligence expected from the applications by businesses.
- The AI algorithm's performance: Sufficient algorithm performance is a critical cost consideration, as accurate predictions require multiple rounds of tuning, which increases the cost of implementing AI solutions. The greater the accuracy and efficiency of the AI predictions, the more expensive these solutions are to implement.
- The AI solution's complexity: When discussing the cost of artificial intelligence, it's critical to consider the cost of developing proper AI software, which includes a cloud-based backend, ETL/streaming tools, voice assistants, cloud dashboards, and other services. It is critical to developing an efficient AI system. It will act as the brain of the company's technological system, pushing data and extracting insights to enable informed decision-making.
- The amount of data consumed by the AI application: AI devices operate following the data that has been loaded into the system. It can process structured as well as unstructured data. However, structured information is less expensive to work with, especially if there is sufficient data to boost the accuracy of the AI algorithm.
So, how much does artificial intelligence cost?
It is a widely held misconception that leveraging artificial intelligence technologies will be prohibitively expensive. This may have been true in the past, but the landscape has shifted with the advancement of technology.
Previously, only prominent technology companies such as Facebook, Microsoft, and Google could afford to develop software and applications powered by artificial intelligence. The advent of numerous affordable tools, libraries, and frameworks has decreased the cost of implementation, making AI more accessible to small businesses and startups.
Pricing for AI solutions based on portfolio composition:
- Development of prototypes begins at US$2500.
- The development of a Minimum Viable Product (MVP) using the client's data begins at US$8000 and can reach US$15000.
- The cost of implementing comprehensive artificial intelligence solutions can range between US$20,000 and US$1000,000.
AI Is the Future
We use artificial intelligence technology daily to meet our personal and professional needs. Not only does it benefit businesses by providing innovative insights from data analysis and solutions to complex business problems, but it also benefits individuals by automating routine tasks.
Almost every industrial sector on the planet utilizes AI and machine learning to streamline business processes and expand market reach. The global artificial intelligence market is expected to reach US$176 billion by 2027, according to reports.