How Much Does It Cost to Develop AI Software Using OpenAI? [A Complete Guide]Home OpenAI Cost to Develop AI Software Using OpenAI By Rakesh Patel Last Updated: August 19, 2023 Are you looking to develop an AI-powered software solution using OpenAI technology? Want to learn about AI-powered software development costs?The cost of simple AI-powered software solutions developed using OpenAI starts from $10,500. This price includes only chatbots developed to perform specific tasks whether for eCommerce or logistics business.As the market of AI and ML is increasing, you would be surprised to know that the AI software market is estimated to reach USD 1,811.75 billion by 2030. We can say that this would be the best time to invest and create an AI-based software solution get to establish your business.As a reliable OpenAI software development company in Canada, we have experience in creating software and mobile solutions for multiple industries like logistics, healthcare, education, and transportation. Based on our knowledge, we have discussed the cost of developing AI software using OpenAI technologies. So, let’s get started.Table of ContentsQuick Answer to AI Software Developed Using OpenAI5 Factors That Impact the Cost of AI Software Developed Using OpenAIHow to Reduce the Cost of Your AI Software Developed Using OpenAI: 3 Key TipsFAQ About Cost of AI Software Developed Using OpenAILet’s Develop Your AI Software Using OpenAI TechnologyQuick Answer to AI Software Developed Using OpenAITo provide you with quick information about the cost of AI-powered software development, we have created a table which describes the information of the type of AI software, examples, approx timeline and development cost. Check the following table to get an idea of the development cost.For this table, we have taken the hourly rate range of a minimum to a maximum of $30 to $45.Type of AI SoftwareExamplesApprox. TimelineDevelopment CostSimpleChatbotsAvatar generator300 – 500 hours$10,500 – $22,500MediumEducation tutor softwareJob interview simulator software800 – 1200 hours$24,000 – $36000ComplexFinancial planning softwareStock market prediction software900 – 1500 hours$27,000 – $67,500The above-mentioned cost of development depends on several factors that include complexity, the quantity of data, quality of data, number of developers, an hourly rate of developers, location of AI developers, OpenAI model you choose, and pricing of OpenAI model.For developing an AI-powered software solution, you need to hire OpenAI software developers who know how to use OpenAI technologies to create AI-powered software. With their expertise, you would be able to build your AI software accordingly.Moving further, let’s now know about the factors that influence the cost of AI software developed using OpenAI technology.Discover the Top 5 Factors That Impact the Cost of OpenAI SoftwareAs discussed, the cost of AI software developed using OpenAI technology depends on multiple factors that include quality and quality of data to the infrastructure required to deploy your software solution.Knowing and understanding these core factors helps you to budget your AI software solution. So, let’s start with the first factor which is the complexity of your software solution.The Project Complexity of Your AI SoftwareThe more complex requirements you have, the more cost your AI software solution would be. The reason is for developing complex AI software, time and resources would be required accordingly.So, what does it mean by the complexity of AI software? The complexity of AI software solutions refers to features and functionalities, quality and quantity of datasets, the complexity of integration, customization requirements, and technologies used for developing software solutions accordingly.Let’s take an example to understand the complexity of AI software.If you want to develop AI-based financial planning software, there are different levels of complexities involved. Here is the list.Software developers and AI engineers need to work with:Financial data, such as historical market trends, investment performance, and economic indicators.Processing of financial data to provide accurate recommendations for investment planning.Integration of your financial systems with investment platforms or banking systems.Ensuring the security of your software solution by using standard data encryption methods, secure databases, and user authentication.Developing such AI-based software falls into ethical and legal implications, such as data privacy, transparency, and following regulatory compliance.However, the complexity of your AI software application also depends on the below key points.Type of AI software application you want to develop like a chatbot or recommendation application systemThe techniques used to process and analyze the data of your software applicationThe level of customization required to create your AI software solutionThe size of your software application and processing of large complex datasetsIntegration of OpenAI technology with your software applicationThe security functionalities you want to add into your software applicationData Collection, Pre-processing, and ManagementTo provide you with accurate results whether it’s related to recognition, automation, prediction, identification, or diagnosis, data plays a very important role.Let’s discuss the hourly rate of different profiles involved in this process from different countries. Note: This data is a reference from PayScale and Glassdoor as of February 2023.Hourly Rate of Different Professionals in Various CountriesCountryData AnalystData ScientistData EngineerProject ManagerUnited States$25 – $75/hr$60 – $200/hr$50 – $150/hr$50 – $150/hrUnited Kingdom$27 – $68/hr$54 – $162/hr$40 – $108/hr$40 – $135/hrAustralia$18 – $50/hr$43 – $130/hr$36 – $108/hr$36 – $108/hrCanada$16 – $40/hr$40 – $120/hr$32 – $96/hr$32 – $96/hrIndia$4 – $14/hr$14 – $34/hr$7 – $21/hr$7 – $21/hrGermany$22 – $66/hr$55 – $166/hr$44 – $110/hr$44 – $110/hrDo you know where all the AI and ML software learn and provide such accurate results?This process is done through data. So, in every kind of AI software application, the data is a core part.But, the raw data cannot be provided to AI machines to get trained on. That’s why the need for data collection, pre-processing, and management are required. So, the quality data can be filtered out and AI machines are trained to provide you expected results.The whole process from collecting data to fine-tuning or training the OpenAI model is long and involves several internal stages.Those stages are data collection, data cleaning, data preprocessing, data splitting, data augmentation, and data balancing.So the model can learn from diverse datasets and provide the results accordingly. All these processes are done by professionals like data scientists, data engineers, data analysts, and project managers.The above data in the table are approximate and you can consider this data as a guide and understanding purpose only. The reason is that the actuarial hourly rate of these profiles may vary based on the factors like experience level, location, and industry.Ready to Develop an AI-powered Software Solution?Validate your idea with our software consultants. Leverage our experience and get started with development. Book Your Free Consultation Model You Choose to Integrate into Your SoftwareDepending upon your AI software development requirements, you need to choose an appropriate OpenAI model for your project. As there are multiple models of OpenAI technology, so does the cost of each model differ. Let’s understand each model and know its cost.OpenAI’s modelOpenAI Model DescriptionAPI Request Cost of Each ModelGPT-3An OpenAI’s large language model is capable of performing a wide range of natural language tasks, such as question answering, text summarization, and language translation.$400 to $12,000 per month The cost depends on the number of API requirements you execute.DALL-EAn image-generating model of OpenAI organization. This model is used to create AI-powered software applications for image recognition and synthesis.N/ACodexAn OpenAI model code generating model trained on large datasets of manual code. This model helps to write code and automate tasks, such as building, writing, and testing scripts.$100 to $1000 per month Similarly, in this model the cost you need to pay as you go.This pricing is for just reference. To know which model can be integrated into your AI software and the cost of that integration, you need to consult the OpenAI-based software development company. Let’s learn about the next factor.Infrastructure Required to Run the ModelThe infrastructure is an important part when it comes to deploying your AI software application whether on cloud servers or on-premises servers. Here is the list of resources that are required to host your software application.Cloud computing resources or servers to host your AI software application and handle the request of APIs.The middleware or API gateway to handle the API requests and responses by managing authentication and security protocols.The need for networking infrastructure to ensure that your software application communicates with OpenAI and sends responses to your application.The data storage requirements to store and process data and manage input outputs of your AI software application.The requirements of infrastructure depend on your project-specific requirements. Depending upon your specific requirements and the OpenAI model you choose. In addition, the resource you would require depends on the type of AI software application you want to deploy on your servers and the users you would be having for your software.Location of AI Software Development Team You HireOne of the core factors that influence the cost of your AI software development is the location of developers or resources you hire for your project development. Basically, the hourly rate of software engineers, data scientists, and data engineers differ from location to location.To give your proper idea, here is a table that provides detailed information on the hourly rate of various profiles involved in AI-based project development from different locations. We have taken these hourly rates from a combination of resources, such as Glassdoor, PayScale, and SalaryExpert.Role US CanadaUKIndiaUkrainePhilippinesData Scientist$100-$200/hr$75-$150/hr$70-$140/hr$25-$50/hr$35-$70/hr$15-$30/hrML Engineer$100-$200/hr$75-$150/hr$70-$140/hr$25-$50/hr$35-$70/hr$15-$30/hrSoftware Engineer$75-$150/hr$60-$120/hr$60-$120/hr$20-$40/hr$30-$60/hr$12-$25/hrData Engineer$75-$150/hr$60-$120/hr$60-$120/hr$20-$40/hr$30-$60/hr$12-$25/hrDevOps Engineer$75-$150/hr$60-$120/hr$60-$120/hr$20-$40/hr$30-$60/hr$12-$25/hrProject Manager$75-$150/hr$60-$120/hr$60-$120/hr$20-$40/hr$30-$60/hr$12-$25/hrQA Engineer$50-$100/hr$40-$80/hr$40-$80/hr$15-$30/hr$20-$40/hr$8-$15/hrTotal$550-$1100/hr$430-$910/hr$420-$840/hr$145-$290/hr$210-$420/hr$86-$175/hrAs you see the hourly rate of location differs, and so does the cost of your AI software depending on which location you hire resources.Depending on your choice either you choose an in-house software development team or outsource your software development. If you are looking to develop at a low cost, you can outsource to countries like India, Ukraine, or the Philippines. Whereas, if you are looking to hire an in-house development team, you can go to Canada or the USA.Please note the above given hourly rates might vary based on experience, location, expertise, and skillset. Furthermore, the above hourly rates are just for reference to give you an idea of how much each professional from different countries charges.Want to Hire Dedicated Developers for Your Project? Describe your requirements to our experience software consultants. Choose the most suitable hiring model and hire our developers for your project.Schedule Your Free Consultation Next, let’s learn about a few tips to reduce the development cost of your AI software. Knowing these factors helps you reduce your cost of AI software and what things to take care of during development.How to Reduce the Cost of Your AI Software Developed Using OpenAI: 3 Key TipsHere are a few ways to reduce your AI software development.Create an MVP Version of Your ProjectBefore creating a fully featured version of your project, you should develop an MVP version. MVP refers to a Minimum Viable Product which means creating a basic version of AI software that has essential features and functionalities to get launched. As you launch your MVP version, you can run a feedback campaign to know the different points of view of your users.Going through the feedback helps you to know where you need to improve your software application over a period of time. An MVP concept helps you to develop AI software with essential features as required and it directly results in reducing the cost of overall product development.Choose the Right Engagement ModelAccording to your project requirements, you should choose an appropriate hiring model or engagement model. Choosing the right hiring model helps you to spend your money wisely. This way, you don’t waste your capital by unnecessarily spending where not required. Generally, there are three models; full-time, part-time, and hourly developers. So, how do you know which model is most suitable for your project development?There are two ways. First, you should know multiple points that help you to choose the right model. Such as your exact project requirements, when you want to launch your AI software solution and your budget. Depending upon these three points, you get the idea to choose the most suitable hiring model for your project development.Second, you can consult an experienced software development company. With the help of consultation, you get an idea of which model is most suitable for your project development.Use of Open-source Software Development ToolsOpen-source tools help you to reduce your development cost as these tools are free to use. So, your hired AI software development team doesn’t need to opt for any subscription.There are multiple benefits of using open-source tools, such as cost savings, customization, community support, and flexibility. Some of the open-source tools are TensorFlow, PyTorch, Keran, and Scikit-learn.That’s why the overall cost of your development gets reduced and you are able to keep your project development within budget.Do you still have questions about your AI software development? Check the next section of the FAQ to clear your doubts.FAQ About Cost of AI Software Development Using OpenAIWhich are the ongoing costs associated with AI software development?There are multiple ongoing costs associated with AI software development. Here is a list.Data storage and managementUpdating and improving data of AI modelHosting feesMaintenance and supportHow does the cost of AI software development differ from other software development?There are several factors that differ in AI software development compared to traditional software development. Here are those factors that influence the cost of AI software.Data collection and preprocessingHigh-skilled AI developersInfrastructure to host and run AI software applicationsComplexity of project and integrationWhat are the benefits of developing AI-powered software for your business?When you develop an AI-powered software application for your business, you get the following benefits.Enhance the efficiency of your business operations by automating simple and repetitive tasksIncrease accuracy in your overall work by deploying ML models to perform the tasksProvide personalized user experience in your software application to get better user engagementGet a competitive advantage by improving your business in your industry to increase your revenue cycleWhich types of AI software can be developed using OpenAI technology?Here are the different types of AI software applications that can be developed using OpenAI technology.Image and video recognition software systemChatbots and virtual assistantsRecommendation software systemsFraud detection and prevention systemsSpeech recognition and transcription applicationsAutonomous vehicle and roboticsHealthcare application for diagnosis and drug discoveryLet’s Develop Your AI Software Using OpenAI TechnologyIn this blog, you have learned about three main points, cost of ChatGPT-powered software application, factors that influence the cost, and tips to reduce your development cost.No matter what kind of AI-powered software application you want to develop, these are core and basic factors that directly impact the cost. You need an AI-specialized software developers team, business data, infrastructure, and an OpenAI model for your project development.So, if you are looking to develop an AI-powered chatbot or financial planning software, get in touch with us. We are a reliable OpenAI software development agency. We have experience with 300+ custom software and mobile applications for our worldwide clients. Let’s get in touch to discuss your requirements.Subscribe0 Written byRakesh PatelRakesh Patel is the Founder and CEO of Space-O Technologies (Canada). He has 28 years of IT experience in business strategies, operations & information technology. He has expertise in various aspects of business like project planning, sales, and marketing, and has successfully defined flawless business models for the clients. A techie by mind and a writer at heart, he has authored two books – Enterprise Mobility: Strategy & Solutions and A Guide To Open311 ×WAIT!Do you know we offer FREE 30-min consultation?If you have a project in mind, let’s talk.We are here in Canada. If required, we can meet in person. Click Here To Get Started Trusted by Leading Brands in Canada ×Join our subscribers' list now! Get top insights and news on latest technologies and trends right to your inbox.