Artificial Intelligence Cost

How Much Does Artificial Intelligence Cost? AI Cost Analysis

Artificial Intelligence!

After reading this word, what comes to your mind?

Robots? ChatGPT? Bard? Siri? Alexa?

Whatever it is, let it be. Artificial Intelligence is not limited to that. Its other aspects that are not in the limelight and work at the back end are the real treasure troves.

Businesses, that are struggling to achieve a bigger space in the market can leverage AI to step up the stairs of success, and that is the real unearthed treasure.

However, before making a decision to leverage the power of AI, some assumptions are there, preventing business owners from entering into this new future domain. The list of these assumptions is vast, but the one that majorly impacts their decisions is the ‘Cost of AI’!

Most Business Owners believe that Artificial Intelligence implementation is an expensive decision that will disrupt their financial stability, and the final results are totally uncertain.

However, that is not the case, In this blog, we are going to discuss the cost of AI implementation for businesses, which is not as high as owners believe.

AI Cost Assumptions

Artificial Intelligence Cost

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Usually, owners assume that a business has to invest somewhere between $500,000 to $1,000,000 to leverage the benefits of Artificial Intelligence, but finding the true value without proper evaluation would never be right. So, let’s get into the facts and proper calculation of How much AI costs in reality.

Cost Of AI in 2023

Many factors combine to make the final cost of AI implementation for any business. From hardware and software to labor and maintenance, we would break down these costs to find a static number.

Artificial Intelligence Cost - 1

1. Hardware Cost:

There are two ways to run AI implementation, whether you can go with in-house building hardware or outsource it from third-party service providers. The first option leads to heavy investment as you might need to install powerful and specialized infrastructure. A large volume of computers would be required to run the AI operations smoothly.

Generally, if you choose third-party service providers like Gsquare to implement AI for your business it will be inexpensive.

One of the two options can be chosen on the hardware setup part, businesses can set up it on their premises or opt out of cloud-based hardware services. The second option is obviously cost-effective.

The hardware setup for businesses can be expensive as it requires GPUs to train neural networks and perform computation.

Also, an application-specific integrated Chip (ASIC), is required to maintain high performance. Moreover, TPUs also need to be implemented to accelerate workloads.

So, we can say that hardware is one of the major contributors to the overall cost of Artificial Intelligence Services Implementation.

2. Software Cost:

The cost of the software depends on its type, If the AI needs to be used only for chatbot services then we only need the basic one. If we require data mining or another type of data analysis then it would require more advanced software.

Therefore, the software cost in the implementation of AI varies based on the type of AI function. There are several specific types of software AI can be based upon like Technology-based, Functionality-based, Capability-based, or more. In simple words, more humans like AI will be more costly and vice-versa.

 3. Maintenance Cost:

Along with maintaining hardware and software, the training also gets included in the maintenance cost. To train the AI neurons, GPU units are required.

The normal cost of a GPU unit is $10,000. So, this also would be a significant amount to be spent, increasing the overall cost of generative AI implementation for any business.

 4. Other Costs:

Apart from all of the above expenses, Artificial Intelligence requires data collection charges, AI server price, and legal fees to get permission to use that data to train the AI system.

Suggested Read: Top 15 ChatGPT Alternatives: Find Your Perfect AI Chatbot Match

Factors That Affect The Artificial Intelligence Cost

The cost of AI is not always the same, as there are several factors impacting the implementation charges, and it varies from business to business. These factors include:

  • Data Size & Complexity Of The Task: The size of the data, the AI setup has to process impacts the cost significantly. More data means it will use more resources. The nature of the task also impacts the working and cost of Artificial Intelligence. If it is being developed to work as a chatbot only, like to receive orders, then it would be easier to build, require fewer resources, and be less complex, ultimately costing less than more complex AI functions.
  • Number Of People Involved: Human resources are expensive and also impact the AI cost. The number of people involved in training, developing, setting up, or performing other functions affects the overall AI cost. The more the person involved, the higher the cost.
  • Size Of The Customer Base: The number of customers that AI must serve also influences the cost of Artificial Intelligence. More customers means AI has to process more data, requiring more resources like GPU units.
  •  AI-Powered Business Size: To what extent the business will work using Artificial Intelligence also impacts the cost. It is like putting the human workload on an AI setup. Like if a business only requires AI to get help in registering orders will require less effort and resources. On the other end, fully automated businesses would work on costly AI setups.

Is it Fair To Spend That Cost?

Certainly, investing in that cost could empower the business and potentially transform it into a giant. To understand this, let’s take a real-life example of ChatGPT, the latest AI-based giant.

Before 2022, Google, Microsoft, Apple, and Other giants were holding the market because these all have several things in common, from holding professional human resources to the luxury of money.But those days are gone when these resources were enough to hold onto the market and secure the top position in the list of successful businesses.

Google, which was understood as an unbeatable player in the online domain and has been leading the competition for decades threatened by the AI-based ChatGPT. In November 2022, when this AI giant came, speculation about Google’s decline spread among the global community. Experts predicted that ChatGPT will hamper Google’s business by billions.

Now the question is, what made ChatGPT so powerful? Well, it has an undisputed answer – Artificial intelligence!

This means AI is the real power now! So, No matter how much human resources you own, if you can’t leverage the power of AI, you have no future in the business.

Why Is This The Best Time To Implement AI From A Cost Perspective?

In the current scenario, the power of AI is at an all-time high, but its cost doesn’t. Businesses that have implemented AI-powered tools have already succeeded, or knocking on the door to success.

Reasons, why this is the best time for AI Implementation:

Best Time To Implement AI From A Cost Perspective

1. Advanced Technology Availability

The current technological developments provide easy access to powerful AI tools and platforms that can be implemented without any delays.

2. Data Abundance

Businesses now own vast amounts of data, essential to training and improving AI algorithms. This makes smooth automated operations possible with accuracy.

3. Cost Efficiency

Due to regular improvements and developments of new technologies, the cost of AI has decreased over time. Now, more businesses of various sizes can adopt AI solutions with fewer barriers.

4. Competitive Edge

By implementing AI, businesses can develop a significant competitive edge, through making data-driven decisions and offering personalized experiences to customers.

5. Efficiency and Automation

AI can help with the automation of daily repetitive tasks that reduce human errors, and free up employees to focus on more strategic and innovative activities.

6. Predictive Analytics

AI enables businesses to analyze all the historical data of their customers to enhance their experience. Moreover, it assists them in analyzing market and financial data to predictions and plans for resource allocation efficiently.

7. Scalability

After getting familiar with AI-driven solutions, it becomes easier for businesses to scale easily, and handle growing demands without making major changes in the established infrastructure.

Businesses That Can Get a Higher ROI

However, Artificial Intelligence, by and large, is capable of helping all types of businesses but businesses with the below-mentioned USPs can reach their full potential and get higher ROI using the power of Artificial Intelligence:

  • Digital Marketing: Businesses in digital marketing can leverage the power of AI in content creation, data mining, social media campaign optimization, audience analysis, and more. These are some of the critical tasks that AI can do efficiently for marketing agencies.
  • Personal Shopper Service: Retail businesses that work on a broad level can utilize Artificial Intelligence to help customers in locating and buying things they are looking for. This service decreases rush, boosts sales, and provides customers with a good shopping experience converting them into loyal ones.
  • Chatbot Service: None of the businesses want to lose their loyal customers, they strive to resolve every query consumer raises as soon as possible, to maintain a positive bond. AI-powered Chatbots can help provide quick & effective solutions, to their queries in real-time, to improve customer satisfaction, reduce costs, and increase sales.
  • Content Creation: Businesses dealing in video creation, script writing, social media management, and other ways of digital publications can get most of the AI generative technology. They can save a lot of time, effort, and resources by using AI to create content or get assistance in content creation.
  • E-Learning: AI has revolutionized e-learning around the globe. Businesses dealing in Education can use Artificial Intelligence to provide the auto-generated solution to their students with promised accuracy. They also can create high-quality study content or provide 24×7 assistance to their aspirants.

Cost of AI


Artificial Intelligence is transforming the whole competitive scenario. Businesses with the aim to be stable and leading edge should leverage the power of AI & beat the competition.

However, implementing AI in your business may seem like a complex puzzle, but don’t worry, Gsquare Web Technologies Pvt Ltd is here to simplify things for you.


1. What is the Cost of AI implementation in 2023?

It would be somewhere between $1,000 to $300,000. However, several factors, like the type of software, size of the customer base, people involved, etc., impact the overall cost.

2. Why is it the best time to implement AI?

Due to significant technological developments, the cost of AI implementation is decreasing. Also, the competition is low, making this time the best for AI implementation.

3. How can I, as a business owner, leverage AI?

Currently, Artificial Intelligence is offering the best assistance in all fields, whether the manufacturing sector, pharma industry, or individual running a shop; all can leverage the benefits of AI at a low cost and with ensured higher ROI.

4. How to implement Artificial Intelligence?

You can do it yourself or hire experts who will do it for you. Read the full article above to find factors impacting cost and other processes of AI implementation.

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