How to Develop AI Software Using OpenAI in 4 Steps

Are you looking to develop a software application powered by OpenAI’s technologies? Or want to resolve problems by integrating OpenAI’s APIs and models into your software solution?

You are reading the right blog post.

Viable, Algolia, and Fable Studio and over 300 applications are powered through OpenAI’s ChatGPT-3, since the launch of OpenAI API. Check the following image for reference.


As a reliable OpenAI software development company, we know the process to create OpenAI-powered next-generation software applications. That’s why to help you know we have curated this guide on how to develop AI software using OpenAI.

By the end of this blog, you will learn the following:

  • How to develop an AI-powered software solution using OpenAI
  • Cost of creating an AI software solution
  • Time estimate to develop an AI software solution
  • Benefits of developing an AI software solution

So, let’s get started.

First of all, let’s know the prerequisite steps that are core parts of developing an AI software solution using OpenAI. you need to understand what are the problems that you want to resolve with OpenAI technology.

2 Prerequisites Before Developing AI Software Using OpenAI

If you are looking to develop a software solution using OpenAI, you need to follow the below software development process. By developing an AI-powered software solution, you can resolve pain points, increase efficiency, and streamline your business operations.

So, here are the 5 steps that will help you to create an AI-powered software solution. Let’s start with the first step which is identifying the problem of your business.

  1. Document Business Challenges You are Facing

    List down the challenges you are facing in your business and try to add information as much as possible. This brings clarity on which kind of solution can be made for your business. You need to outline the problem areas of your business for which you want to integrate OpenAI. Also, you need to take a comprehensive look at your challenges to identify the relevant data.

    Taking a comprehensive look at your business allows you to identify the information about current pain points, inefficiencies, and limitations of your business operations. A few ways to take a comprehensive look at business challenges are as follows.

    • Know where manual labour is involved and assess areas where inefficiencies and errors occur.
    • Identify the data related to your business operations, such as sales data, customer data, and internal process data.
    • Recognize the pain points and areas of improvement by assessing situations at the ground level.

    Following these three points help you to identify and assess the problems of your organization. Next, you need to research OpenAI capabilities to know where it has tools that can help you to resolve your problems and take your software to the next level. Sounds good? The next step is to get familiar with OpenAI’s technologies to solve your problem.

  2. Choosing the Right AI Software Development Company

    Once you have a list of challenges that you solve with the help of OpenAI, find a trustworthy OpenAI software development company. So, how do you hire reliable OpenAI software developers who can help you to develop solutions as per your requirements? If you are not sure, follow the below steps.

    • Go through the websites like Clutch, Toptal, People Per Hour, and Upwork to find companies.
    • AI conferences and networking with attendees help to find information about top AI development companies in the market.
    • Go through the AI forums and online communities to find reliable AI software companies.
    • Check whether the software developers have experience in developing and integrating OpenAI solutions or not.
    • Check if the software developers have appropriate technical skills, such as knowledge of OpenAI, programming languages, and deployment experience with the cloud.

    However, you can hire Space-O as your OpenAI software development partner. Why? We have successfully delivered 300+ software and mobile solutions to our clients across the world. Also, we have experience developing software solutions for multiple industries like food, healthcare, logistics, and real estate.

Want to Hire Experienced AI Software Developers?

Talk to us. We have a team of experienced AI engineers, developers, and testers to help with end-to-end development.

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Process of Developing an AI Software Solution Using OpenAI’s Models

As an OpenAI software development company, here are the four steps that we follow to create AI-based software solutions.

The first step for the company is to know your requirements and make you familiar with how OpenAI is useful for your software solution. Let’s discuss the whole process of developing AI-powered software using OpenAI technology.

  1. Requirement Analysis and Makes You Familiar With OpenAI’s Models

    As you have prepared a list of challenges, we discuss your problems and requirements to offer you an appropriate solution. Also, you get complete information about OpenAI, its models, and how OpenAI models are useful when integrated with your software systems. OpenAI offers multiple APIs that include GPT-3, DALL-E, and OpenAI Codex.

    Using these APIs you can create a software solution for your business. OpenAI’s model integration into your software solution helps you in the following ways:

    • Make better and data-driven decisions
    • Improve the customer support experience
    • Fraud detection within your software
    • Analyze the data on demand, supply, and production

    Before that, identifying the most suitable OpenAI API is crucial to integrate into your software solution as per your requirements. Depending on your requirements, the best OpenAI is selected to integrate into your software solution.

    However, OpenAI software agency also gets clear with the limitations and advantages of your selected OpenAI model. This way, you can know how effectively you can use the platform by integrating the OpenAI APIs.

    Moreover, getting familiar with OpenAI APIs allows you to know how to utilize them for various areas of improvement in your software. Now, gathering the data and resources of your business is the next step.

  2. Gathering Data and the Resources

    At this stage, as an OpenAI software development company, we gather the data regarding the problem you want to solve. Gathering data is not about collecting every kind of data, but ensuring to collect high-quality data which is accurate and most relevant to the problems you want to solve in your software solution.

    Once the collection of the appropriate data is done, next the data preparation is carried out. Data preparation is the process of cleaning and preprocessing the data to remove unnecessary information.

    Further, labelling and categorizing your business data gets done to make it reusable for machine learning models. This process is called data annotation. Using this process, your business data is more structured for machine learning algorithms. So, effective training of the data models gets done in your software.

    For example, you are facing a problem of predicting customer churn. For that, you need data, such as demographic information of your customers, custom interaction information with support, custom transactions, customer engagement, and feedback from customers.

    A combination of all these data helps to train the OpenAI data model so it can predict the results. This way, your software solution gets upgraded with the OpenAI technology and it becomes easy to retain as many customers as possible.

  3. Train and Evaluate the Model on Your Custom Data

    As your data gets structured, our OpenAI software developers train the data models based on your data. To train OpenAI’s data model, tools and technologies like PyTorch, TensorFlow, CUDA, cuDNN, DeepSpeed, and Apex are used. These are the commonly used tools for training the OpenAI data models based on your larger and tailored datasets.

    Our OpenAI software developers train the model with custom datasets. If the model doesn’t perform well, adjustments are done to the model which results in improved performance of OpenAI data models. A few of the strategies to adjust OpenAI data models are as follows:

    • Hyperparameter tuning: Adjusting the value of certain parameters, such as batch size, and the learning rate, and finding the optimal combination that provides the best performance of customized OpenAI data models.
    • Regularization: Using regularization to prevent overfitting and improve the generalization performance of the model.
    • Data augmentation: Applying random transformations to existing data to make a model provide better answers on the input data.
    • Architecture modifications: Making changes in the architecture layers for providing accurate results.
    • Transfer learning: Providing learning to pre-trained models with custom datasets for performing the specific task.

    While training models with appropriate data, the accuracy of results and performance of models get evaluated. If the performance is not as per your requirements, again the process of training models on new datasets is done.

    Until the model provides accurate results, the steps of training, fine-tuning, or making adjustments are repeated. Once the training or fine-tuning of the OpenAI model is done, the next step comes to integrate customized OpenAI into your software solution.

  4. Develop AI-based Software Using OpenAI’s APIs and Models

    Either developing a software solution from scratch or integrating it into an existing software solution. For that, you even need to hire ChatGPT software developers to take care of each step which includes planning, data gathering, data preparation, training, fine-tuning, integrating data model, and deployment of your software system on the on-premises or cloud servers.

    AI software developers take care of business logic, design, and development, and provide maintenance if required. As the process of integration gets completed, testing of your software solution is carried out. The QA teams perform multiple types of testing, such as functional, non-functional, UAT, and performance testing. Ensuring that your software is 100% bug-free and works perfectly fine then deploys on the cloud servers.

    So this is the whole process of integrating the OpenAI data model into your software solution. Next, you might want to learn about the timeline for integrating the OpenAI data model.

How Much Time Does It Take to Develop AI Software?

Generally, the average timeline to create an AI-powered software solution ranges from 6 to 9 months. However, there are multiple factors that impact the timeline of software development. Those factors are as follows.

  1. The amount of data that needs to be processed and fine-tune:
  2. Reason: There are a lot of data processing techniques like data cleaning, normalization, sampling, and augmentation. And, each of these techniques requires a different timeline. When we understand your project requirements, we figure out the technique we might need to use and the timeline it might require.

  3. The type of AI model you choose to integrate:
  4. Reason: As per your requirements, whether there would be the need for pre-trained models like GPT-3, Codex, or DALLE-2, or only integration of OpenAI’s API, or need to build custom models using OpenAI’s tools and resources. As we understand your requirements, we choose the appropriate type of model to integrate into your software.

  5. Change requests and scope modification during development:
  6. Reason: During the development of your AI software development, constantly evolving requirements, unforeseen challenges, and changes in priorities directly impact the timeline of your software. As working on the challenges or change requests result in an increase in the timeline, so does the overall development timeline of your project increases.

Moreover, the timeline also depends on the simple interface or complex user interface, and functionalities you want to add to your software solution. If you have a more complex user interface, the development time might be longer. Generally, providing the exact timeline of AI software development until having specific requirements.

To know the exact timeline or estimated timeline, you can contact a reliable OpenAI software development company. Depending on your requirements, the company provides your estimation by calculating all the factors and understanding your requirements.

Do you also want to learn about the cost of developing an AI-powered software solution? Check the next section.

How Much Does It Cost to Develop an AI Software Solution?

The average cost of developing an AI software solution using OpenAI starts from $50,000.

Generally, the cost of developing AI-powered software depends on various factors which are as follows.

  • The complexity of your software solution
  • The requirements of computational resources required to fine-tune models
  • The usage of OpenAI API
  • The type of OpenAI model you choose to integrate
  • The size of the software development team

These are the core factors that directly impact the cost of developing an AI-powered software solution from scratch. However, the pricing of OpenAI API is based on its usage and the number of calls executed per month. Each OpenAI API has its own pricing, so you need to pay the pricing depending on its usage.

For knowing the exact cost of OpenAI software development, you can read our detailed post blog on cost of develop software using OpenAI. Based on your project development requirements, our technical software developers provide your cost estimation. You can even use the following formula to get a rough idea of the development cost.

Software Development Cost = Total Development Time X Hourly Rate of AI Software Developer

Remember this formula will provide you with a rough cost estimate. As the cost of OpenAI API, third-party integrations, and deployment servers is not included, you won’t get the exact cost.

How Space-O Technologies Can Help You to Develop an AI Software Using OpenAI

As a leading software development company in Canada, we have successfully developed 300+ custom software and mobile solutions. Whether you want to develop a software solution for industries like health, food, real estate, construction, or transportation, we have skilled and talented software engineers who work on your idea to make it a reality. Check a few of our developed custom software and mobile solutions.

From planning to deployment of your software solution, we help you with each step. You don’t need to worry about execution because that is done by our experienced software developers. To discuss your requirements, book a consultation with us. Our technical team will contact you within 24-48 hours to discuss and understand your requirements.

Build a Software Solution Using OpenAI Technology

Discuss your requirements with us. As a leading AI software development company, we can help you with end-to-end development.

Still, have doubts about developing an AI software solution using OpenAI? Check our frequently asked questions section.

FAQs About AI Software Solutions Using OpenAI

  1. What are the benefits of developing an AI software solution using OpenAI for a business?

  2. Here are the key benefits your business gets by developing an AI software solution.

    • Improves the efficiency of your business by automating manual tasks
    • Enhances the accuracy of your business to eliminate human errors
    • Provides more personalized customer experience to your customers
    • Improves your decision-making and helps you to drive your business
    • Improves security of your business by securing sensitive data and systems
  3. Which kind of software solutions are developed using OpenAI technology?

  4. Here is the list of AI software solutions that can be developed using OpenAI.

    • Image and object detection solutions
    • Automation software solutions
    • Chatbots and virtual assistant solutions
    • Security software solutions
    • Predictive analysis software solutions
  5. Which types of OpenAI APIs are available for integration?

  6. Here is a list of OpenAI’s API for the development process.

    • OpenAI GPT-3 API
    • OpenAI DALLE-2 API
    • OpenAI Codex API
    • OpenAI GPT-3 Codex API

Let’s Develop Your AI Software Using OpenAI’s APIs

In this blog, you have learned about the steps that help you develop an AI software solution using OpenAI APIs. Also, you got to know about the cost, timeline, and benefits of developing an AI-powered software solution using OpenAI’s APIs.

Whether you want to make an intelligent chatbot, virtual assistance, or automation software solution for your enterprise business, OpenAI’s APIs can help you.

To develop AI-powered software solutions using OpenAI’s APIs, get in touch with Space-O Technologies. Discuss your requirements with us by booking a consultation. We can help you from planning to deployment of your AI software solution. Let’s talk.

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Rakesh Patel

Written by

Rakesh 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

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