How Much Does It Cost To Build Chatbot In 2020? (2022)

Few years ago people mostly communicated via email and – from time to time – via phone. Now we are more likely to use Facebook Messenger or WhatsApp. In the near future, we will see another shift in trends due to the increased popularity of chatbots. Soon it’ll be enough for customers to open a messenger and enjoy a completely new way of instant communication with your company. Chatbots have the potential to revolutionize presale processes and support service as they are able to give instant answers anytime your customers want.

More and more companies are becoming interested in their own chatbot development. According to the survey held by Oracle, 80% of the respondents (chief strategy officers, senior marketers, and sales executives) said they already used chatbots or planned to use them by 2020.

Before implementing a chatbot software, you should answer the following questions:

  1. What needs to be done prior when you want to build a chatbot?
  2. What does the chatbot development process involve?
  3. How much does it cost to develop a chatbot?

In this article, we’ll cover all the above-mentioned issues. We’ll also focus on cost-efficiency factors and give an approximate estimate of each phase, as well as the whole development process.

CHATBOT DEVELOPMENT PHASES

It’s needless to say that the main factor influencing the final chatbot price is the work being done to develop a product. The development process is usually split into several phases. Having a general idea of the project phases may help you make a rough estimation of the chatbot cost. The following roadmap has been found suitable for chatbot development and is adopted by Azati.

1. DISCOVERY PHASE

As the first step, we define the project purpose and value proposition. We set goals, expectations, and metrics. Having a proper understanding of what you want a chatbot to do and the ways it can improve your business helps us define an appropriate development strategy. These findings would also play an important role when deciding on the technologies to use. As a rule, we focus on the following points:

  • What is the size of your business – small, medium or large?
  • Do you want a chatbot to entertain the clients or to provide full customer support with minimum human involvement?
  • Which processes can be automated with a chatbot in your case (presale customer communication, customer support or any other)?
  • How many messaging platforms are you going to cover? What are they?
  • How many users do you expect your chatbot to serve? What is the expected conversational flow?

Although the questions are fairly simple, this step is crucial for in-depth analysis since the outcomes of this phase determine the following chatbot development stages.

(Video) HOW TO MAKE A CHATBOT | HOW MUCH WILL IT COST??

The discovery phase is about learning what business has, wants and needs. So, the next move is to identify the requirements and functional units of a chatbot, such as:

  1. Conversational Flow
  2. Control Panel
  3. Interaction Channels
  4. Integration
  5. Natural Language Processing
  6. Backend

You also need to decide how the chatbot will be built. Basically, it might be the most important aspect that affects the chatbotprice. There are two major options for you to choose from:

– Building a custom solution

It’s great to get a chatbot that is built according to your needs, preferences, and plans. This way, you are not tied to any platform abilities; although, the support and maintenance of such a bot becomes your responsibility.

– Building a bot on top of a bot-platform

As a rule, creating a chatbot using an existing platform is a more cost-efficient option. Such services work on a subscription basis and charge monthly fees (sometimes basic functionality is provided for free). However, there are additional fees for customization, and oftentimes the final sum you pay equals the sum you’d pay for a custom solution.

All in all, this option means that:

(Video) How Much Does A Chatbot Cost

a chatbot is built faster (as basic functionality is already offered by a platform);

you get support and maintenance provided by the platform;

you can still get a custom chatbot.

There is no right choice here. The complexity of the future chatbot doesn’t matter when choosing between the options – any of them might be suitable.

By the way, we went the extra mile and wrote the article about the main difficulties you may face if you develop a chatbot on the platform

Finally, the project managers estimate time, energy and budget, and reflect it all in the corresponding documentation.

After that, the parties define the scope of work needed for the next move (which is the prototype development). If all the required data is accessible, the phase takes 5-7 working days on average.

(Video) Price Chat Marketing Services - Chatbot Price Strategies

At Azati, we usually go through the discovery phase for free.

2. PROTOTYPE IMPLEMENTATION AND EVALUATION PHASE

A prototype is an early model that does not have all the functionality of the final product. It can be code-based or simply in the form of a mockup (the choice depends on the chatbot complexity). A prototype helps to learn many essential things. It is built to verify some key functional aspects of the intended design, or in other words, to conduct a feasibility study.

Once the prototype is built, it is discussed with the client. The client and the developers are then able to validate the requirements, outline options, and make adjustments if needed. The risks and costs associated with software implementation are dramatically reduced, as the requirements are well-discussed early on, prior to development.

We are striving to make this phase as affordable as possible. Typically, the cost of a chatbot prototype is about $3,000 – $5,000.

3. MINIMUM VIABLE PRODUCT

Bearing the findings from the prototype phase in mind, we develop a minimum viable product (MVP). An MVP is a product with basic functional features, a light version of the ultimate solution that already works with actual data. The MVP is exposed to a small group of end users in order to gather vital feedback. It is way less expensive to modify the system at this stage, than when it is fully developed.

The cost for a chatbot-related MVP ranges between $10,000 – $20,000, depending on the total project size and complexity.

4. CHATBOT SOFTWARE RELEASE

As a result of this phase, the product with a complete set of predefined features is developed and then launched onto the market. During the preceding phases, we elicit and validate the exact requirements. Therefore the end product is made with minimum risk.

(Video) How much does a chatbot cost?

The cost of the release phase is usually estimated during the previous phases.

CONTINUOUS TRAINING OF A CHATBOT

Just as the employee’s effectiveness depends on their experience, the effectiveness of a chatbot depends on its knowledge base and training. The AI-powered chatbots are able to learn from the data submitted by end users continuously. The training process is ongoing, and much attention should be paid to it. With such outstanding ability, you’ll see your chatbot grow more intelligent, respond to detailed queries and communicate in a human-like manner, raising the level of customer satisfaction.

SO, HOW MUCH DOES IT COST TO BUILD A CHATBOT?

The common misconception about AI-driven chatbots is that they must cost a fortune. Thanks to the emergence of various tools, libraries, and frameworks, chatbot technology is becoming affordable for many companies.

The final cost of a chatbot varies and is calculated for each case in particular. Most often software companies charge from $15,000 to $30,000 for a custom bot.

The companies located in Silicon Valley set a minimum price of $30,000 for a pretty simple bot that is able to reply to various users’ questions.

The price for a very sophisticated AI-chatbot for customer support ranges from $40,000 to $100,000. Such bots are powered by Natural Language Processing and Machine Learning technologies, and are endowed with more powerful capabilities of learning and absorbing information. They can target customers through marketing campaigns and media, handle personalized news and content distribution, and more. If combined with payment services, such chatbots become fully fledged business solutions.

One may start with a simple chatbot software that automates routine flows of your company, and opt for an AI-based bot as soon as the first one shows its efficiency.

(Video) BMC Exchange 2020: How to Build Your Own Chatbot

Finally, the chatbot development price may vary from $5,000 up to $150,000 owing to many factors.

SUMMING UP

Hardly anyone would refuse to recognize the chatbots’ great capabilities in identifying and satisfying the users’ needs. Gone are the days when your customers had to call during office hours. Luckily, today many businesses can appreciate the ease of a self-serving tool that would inform the customers about their products and services 24/7/365.

By the way, Azati team created a powerful solution for chatbot development which will perfectly fit for all your needs and requirements since the product is quite flexible and is able to be customized. Azati Conversational AI Platform will make your customer interaction completely automated. To learn more – drop us a line and we’ll have a chat on how our platform can help your business.

FAQs

How much does it cost to create a chat bot? ›

How much does a chatbot cost? Please, give me a simple answer.
In-House Chatbot CostsAgency Chatbot Fees
Chatbot Software Platform$50-$500/month$50-$500/month
Chatbot Setup and DevelopmentSalaries (5-100 hours of work)$500-$2,500
Ongoing chatbot support and maintenanceSalaries (0-10 hours of work per week)$50-$5000/month

How much does it cost to build a WhatsApp chatbot? ›

Custom Development

The price of the chatbot option depends on its purpose. If you need a simple chatbot to automate your sales or support it will cost not more than $10,000, while if you need a custom-developed chatbot it can cost you up to $80,000, depending on many factors and opportunities.

How long does it take to build a chatbot? ›

Implementing a chatbot takes 4 to 12 weeks, depending on the bot's scope, the time required to build your knowledge base and its technical complexity.

How much does a Facebook bot cost? ›

Messenger Bot FAQs

The pricing for Messenger Bot starts at $4.99 per month. Messenger Bot has a single plan: Messenger Bot Premium at $4.99 per month.

How much does it cost to hire a bot developer? ›

– The Exact Chatbot Development Cost

Seeing the work that goes into developing a chatbot, the approximate chatbot cost that comes for development of your bot is in the range of $25,000 to $30,000. The cost range includes the design, development, and integration part of the whole chatbot development framework.

How much do bot developers make? ›

The average bot developer salary in the USA is $121,875 per year or $62.50 per hour. Entry level positions start at $98,800 per year while most experienced workers make up to $157,365 per year.

Is chatbot cost effective? ›

AI-powered voicebot is cost-effective as it employs technology, particularly automation, to bring down operations costs. And by providing delightful experiences, voice chatbots ensure you are getting new business and retaining older customers, adding to your revenues.

Are chatbots profitable? ›

Chatbots are very profitable if you clearly know how to monetize them. You can either choose to use a single technique or even combine some. For instance, you can decide to make a helpful chatbot that generates leads and provide affiliate links. In this case, you'll increase the money you earn.

Is Google chatbot free? ›

For most chatbots, you don't have to pay anything, you can just use Dialogflow ES for free. Only when your chatbot is really advanced or when you handle a large amount of messages, you need to pay anything.

Is making chat bot easy? ›

Chatbot platforms are the best place for beginners to start with, These platforms are simple, easy to use design and we don't need any kind of coding knowledge, it is simply a drag and drop function.

Is creating chatbot easy? ›

Because building a chatbot with code is immensely difficult for people with no development background and limited exposure to coding languages, it's good to research sample chatbot code from expert developers as a jumping-off point for those determined to learn how to build their own bot without help.

Is it easy to build a chatbot? ›

Coding a chatbot that utilizes machine learning technology can be a challenge. Especially if you are doing it in-house and start from scratch. Natural language processing (NLP) and artificial intelligence algorithms are the hardest part of advanced chatbot development.

How much money do bots cost? ›

"You're going to need a bot. A lot of bots are resold, believe it or not. And you can't get your hands on them besides paying resale for it, because they barely restock for retail. So if you can catch a bot for retail, it's going to cost you from $300-$500 a year.

How much does an Instagram bot cost? ›

Instagram Bot: $15/month.

Which is the best chatbot platform? ›

Here are the 10 of the best AI chatbot platforms to build the exact right bot for your business.
  1. Lobster by EBI.AI. EBI.AI have created their own advanced conversational AI platform that comes with a free trial. ...
  2. ProProfs Chat. ...
  3. Chatfuel. ...
  4. MobileMonkey. ...
  5. Aivo. ...
  6. ItsAlive. ...
  7. Imperson. ...
  8. Pandorabots.
12 Sept 2022

How can I become a chatbot developer? ›

The qualifications that you need to become a chatbot developer include a degree or equivalent experience, skills with AI and machine learning, and knowledge of computer programming languages. Many employers prefer applicants with a bachelor's degree in computer science or a related subject.

How much does it cost to pay a developer? ›

Developers in the USA are the most expensive developers across the world, the cost per hour ranging from $42 to $70, according to Salary.com.

How much does a freelance developer charge per hour? ›

Most guidance puts developers somewhere between $61-100 as an hourly rate. CodeMentorX's data dips as low as $41 per hour, and reaches a top-end $160 for every 60 minutes a developer works.

What programming language is used for bot? ›

Lisp is the most popular language when it comes to creating chatbots. Its dynamic prototyping abilities makes it a desired language for chatbot training. Lisp leverages its rich library to process symbolic information rather quickly. This makes it easy for programmers to build bots for specific purposes.

Are chatbots in demand? ›

The Global Chatbot Market was valued at USD 3.78 billion in 2021 and is projected to register a CAGR of 30.29% over the forecast period 2022 - 2027. The chatbot market is witnessing growth due to increasing demand for messenger applications and the growing adoption of consumer analytics by various businesses worldwide.

How can I build my own bot? ›

Perform the following steps to create your first chatbot:
  1. Create a bot. Go to gupshup.io and login using your Github or Facebook login. ...
  2. Testing your bot. Local testing: You can test your bot locally within IDE itself using our in-built chat widget. ...
  3. Deploy On Prod. ...
  4. Test your bot on Gupshup proxy bot. ...
  5. Publish your bot.

What is ROI of chatbot? ›

ROI = (Gains through bot – maintenance charge)/(maintenance charge) ROI = ($63,000 – $3,647)/($3,647) ROI = 16.3 or 1630% Using this method, you can build your own chatbot ROI calculator considering your own business parameters. NLP and AI-powered chatbots can yield a better return on investment.

How much money do chatbots save? ›

A new study released by UK-based Juniper Research estimates that chatbots will help businesses save more than $8 billion per year by 2022. Bots have the ability to improve the efficacy and productivity of workers in businesses by providing quick answers and solutions to customers with simple queries.

Is AI chatbot free? ›

Absolutely not. The free AI chatbot costs nothing. If you add optional add-ons, then you will see those on your bill. You can easily add or remove optional add-ons month-to-month for total flexibility and cost control.

Why do most chatbots fail? ›

Most chatbots provide a scalable way to interact with a larger customer base on a 1:1 basis but they fail when they are incapable of leveraging NLP. They are unable to deliver an experience as smooth, efficient, and meaningful as a multi-layered, human-to-human-like conversation does.

How do you build a chatbot and sell it? ›

Essential Element to Selling With Chatbots #1. Conversation is for Closers
  1. Grab Their Attention. Conversational Marketing is the name of the game today. ...
  2. Mix It Up. ...
  3. Humor and GIFs. ...
  4. Let Them Drive. ...
  5. Tag Everything. ...
  6. Email Magic. ...
  7. Keep It Compliant. ...
  8. Easy Peasy.
15 Apr 2020

Can I sell my chatbot? ›

Yes, you can make good money creating and selling chatbots. If you build quality bots, you can sell them to businesses at a profit. Some bots sell for thousands of Dollars.

What is the most powerful chatbot? ›

14 Most Powerful Chatbot Development Platforms To Build A Chatbot For Your Business
  • Octane AI. ...
  • Flow XO. ...
  • ManyChat. ...
  • Botsify. ...
  • Chatfuel. ...
  • Pandorabots. ...
  • BotsCrew. ...
  • Aivo. Aivo's bots offer robust customer service and gives you the ability to respond to customers in real-time, through text as well as voice.

What is the cost of Google chat? ›

Individuals can use the no charge version of Meet which includes video meetings for up to 100 participants for up to 24 hours. How much does Chat cost? Chat is also available at no cost for individuals with Google accounts.

Are Facebook chatbots free? ›

There are lots of free chatbot building tools such as the one I run Chattypeople.com that offer the ability to setup a bot and connect it to facebook. You won't require any coding knowledge, and you can sign up using your Facebook account. Once you've set up a free account you can start creating your chatbot.

Can I build bot without artificial intelligence? ›

Without Artificial Intelligence, we won't be able to create a bot. As a result, it is incorrect. To make the bot adapt to the information and examples, we'll require machine learning. The bot's ability to deduce specific probability on which can be decided must then be tested in the real world.

Who is the smartest chatbot? ›

Best AI Chatbots for 2022
RankAI ChatbotRating (Out of 5 Stars)
1.Netomi5
2.atSpoke4.8
3.WP-Chatbot4.7
4.Microsoft Bot Framework4.6
12 more rows
19 May 2022

What skills do I need to build a chatbot? ›

Technical Skills:

Must have knowledge of Google DialogFlow cognitive service, Rasa, Microsoft Bot, IBM Watson, and other chatbot development platforms. Sound knowledge of AI/chatbot development landscape, tools, and other frameworks. Hands-on experience working with LSTM and Transformer Networks.

Is chatbot AI or ML? ›

Chatbots are a type of conversational AI, but not all chatbots are conversational AI. Rule-based chatbots use keywords and other language identifiers to trigger pre-written responses—these are not built on conversational AI technology.

Is Python good for chatbot? ›

In the past few years, chatbots in the Python programming language have become enthusiastically admired in the sectors of technology and business. These intelligent bots are so adept at imitating natural human languages and chatting with humans that companies across different industrial sectors are accepting them.

Does chatbot require coding? ›

With no coding necessary, businesses can automate their customer experiences with a graphical Bot Builder that makes it easy to create workflows for sales, customer service, and other departments. Multiple bots can be used on the same website and managed within a single Wotnot account.

Does it cost money to make a discord bot? ›

You do not need to install anything on your computer, and you do not need to pay anything to host your bot. We are going to use a number of tools, including the Discord API, Python libraries, and a cloud computing platform called Repl.it.

How much does it cost to develop a chatbot in India? ›

As per DxMinds the cost of Chatbot development may varies in between $5000-$50000, depending on various facts involved in development process such as design, development and integration.

How much money does 1 million Instagram followers make? ›

Influencers with a million followers can earn somewhere around $670 per post, the search marketing website says. A content creator on Instagram with 100,000 followers can earn about $200 per post, while someone with 10,000 followers can make about $88 per post.

How much do social media bots cost? ›

Social Media Bot licenses are available in three types. Payment is made through PayPal over a secure connection.
...
Pricing.
BuyLicense
Enterprise License — 99 USDOne year license for an enterprise with unlimited user seats.
2 more rows

How much does 1k followers make on Instagram? ›

Micro-influencers (between 1,000 and 10,000 followers) make an average $1,420 per month. Mega-influencers (more than one million followers) make $15,356 per month.

What are the two types of chatbots? ›

This article aimed to help understand the two main types of chatbots: rule-based and AI chatbots. The latter has a much more complicated functionality and contextual awareness that require less training data and that can actually perform the task for the customer without any human assistance.

Is Siri a chatbot? ›

Yes! Technologies like Siri, Alexa and Google Assistant that are ubiquitous in every household today are excellent examples of conversational AI. These conversational AI bots are more advanced than regular chatbots that are programmed with answers to certain questions.

What are the 7 steps to create a chatbot strategy? ›

Let's walk through them in order.
  1. Audience. The first key to a successful strategy is to profile your ideal customers. ...
  2. Goal. To define the purpose or goal for your chatbot strategy, begin with the end in mind. ...
  3. Performance. ...
  4. Key Intents. ...
  5. Storytelling. ...
  6. Platform Strengths: ...
  7. Feedback.

Is it easy to create a chat bot? ›

Coding a chatbot that utilizes machine learning technology can be a challenge. Especially if you are doing it in-house and start from scratch. Natural language processing (NLP) and artificial intelligence algorithms are the hardest part of advanced chatbot development.

Are chat bots hard to make? ›

Because building a chatbot with code is immensely difficult for people with no development background and limited exposure to coding languages, it's good to research sample chatbot code from expert developers as a jumping-off point for those determined to learn how to build their own bot without help.

Are chatbots profitable? ›

Chatbots are very profitable if you clearly know how to monetize them. You can either choose to use a single technique or even combine some. For instance, you can decide to make a helpful chatbot that generates leads and provide affiliate links. In this case, you'll increase the money you earn.

Does it cost money to make a discord bot? ›

You do not need to install anything on your computer, and you do not need to pay anything to host your bot. We are going to use a number of tools, including the Discord API, Python libraries, and a cloud computing platform called Repl.it.

How do you build a chatbot and sell it? ›

Essential Element to Selling With Chatbots #1. Conversation is for Closers
  1. Grab Their Attention. Conversational Marketing is the name of the game today. ...
  2. Mix It Up. ...
  3. Humor and GIFs. ...
  4. Let Them Drive. ...
  5. Tag Everything. ...
  6. Email Magic. ...
  7. Keep It Compliant. ...
  8. Easy Peasy.
15 Apr 2020

How do I become a chatbot developer? ›

The qualifications needed to become a chatbot developer include a degree or equivalent experience with artificial intelligence and machine learning as well as a background in computer programming languages. Most employers prefer applicants who have a bachelor's degree in computer science or a related subject.

What is the best chatbot builder? ›

What is a chatbot builder?
Chatbot builderRatingBest for
Tidio4.7/5 ⭐️ (951 reviews)Small to medium businesses
HubSpot4.4/5 ⭐️ (899 reviews)Businesses who use other HubSpot services
Chatfuel4.6/5 ⭐️ (31 reviews)Social media chatbots
Pandorabots5/5 ⭐️ (1 review)AI chatbots
6 more rows
2 Sept 2022

Why do most chatbots fail? ›

Most chatbots provide a scalable way to interact with a larger customer base on a 1:1 basis but they fail when they are incapable of leveraging NLP. They are unable to deliver an experience as smooth, efficient, and meaningful as a multi-layered, human-to-human-like conversation does.

Can chatbot be hacked? ›

Hackers can attack a chatbot and turn it into an 'evil bot. ' The ultimate goal would be to scan the other bots in the network for possible vulnerabilities that could later be exploited. Once the bot service or framework protecting the user data gets compromised, it could lead to data theft.

What is the most powerful chatbot? ›

14 Most Powerful Chatbot Development Platforms To Build A Chatbot For Your Business
  • Octane AI. ...
  • Flow XO. ...
  • ManyChat. ...
  • Botsify. ...
  • Chatfuel. ...
  • Pandorabots. ...
  • BotsCrew. ...
  • Aivo. Aivo's bots offer robust customer service and gives you the ability to respond to customers in real-time, through text as well as voice.

Can I sell my chatbot? ›

Yes, you can make good money creating and selling chatbots. If you build quality bots, you can sell them to businesses at a profit. Some bots sell for thousands of Dollars.

What are the 7 steps to create a chatbot strategy? ›

Let's walk through them in order.
  1. Audience. The first key to a successful strategy is to profile your ideal customers. ...
  2. Goal. To define the purpose or goal for your chatbot strategy, begin with the end in mind. ...
  3. Performance. ...
  4. Key Intents. ...
  5. Storytelling. ...
  6. Platform Strengths: ...
  7. Feedback.

Are chatbots in demand? ›

The Global Chatbot Market was valued at USD 3.78 billion in 2021 and is projected to register a CAGR of 30.29% over the forecast period 2022 - 2027. The chatbot market is witnessing growth due to increasing demand for messenger applications and the growing adoption of consumer analytics by various businesses worldwide.

How much is Discord salary? ›

The average Discord salary ranges from approximately $57,000 per year for Customer Service Representative to $223,481 per year for Senior Software Engineer. Salary information comes from 29 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months.

How can I host a bot for free? ›

To do this we need to follow a few steps.
  1. Navigate to our bots directory.
  2. Create a Procfile.
  3. Create a requirements.txt file.
  4. Initialize a git repository.
  5. Commit to the repository.
  6. Sign into heroku from command line.
  7. Push git to heroku.
  8. Turn our bot on from heroku dashboard.

Is making your own Discord bot free? ›

Make your own Discord bot for free with no coding required. Create your own button, select menu and response commands or choose from premade modules. /ButtonsDrag and drop different options, actions and conditions to add them to your command.

Videos

1. 14 Most Powerful Platforms to Build a Chatbot | Best Chatbot Development Platforms to Develop Bots
(Maruti Techlabs)
2. AWS re:Invent 2020 I Build a chatbot using AWS QnABot
(AWS Public Sector)
3. The Third Wave of AI: Chatbots with a Brain(01/18/2020)
(IDEAS)
4. Start It Up – Starting A Chatbot Building Company
(Entrepreneur India)
5. How to build a lead generation chatbot on WhatsApp
(TARS)
6. Develop a chatbot for your business!
(ShoutOUT)

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