How Much Does It Cost to Develop A Chatbot In 2023

Author: Mariam A. | January 27, 2023 - TekRevol Team
  • New Technology
  • |

With the accelerated development of technology, many industries and companies have experienced a considerable shift in recent times, particularly in the chatbot sector. At present, chatbots are a crucial element of contemporary common procedures used worldwide.

Owing to the varied advantages of chatbots, presently, almost all traditional businesses are integrating them for the improvement of their operations.

Key Points to Stay Up-to-Date with the Chatbot Technology

Chatbot Technology in 2023


Now you’ve learned plenty of information regarding the advancement in the chatbot industry. Perhaps, now you’re perplexed about how much expenditure will be required to develop a chatbot in 2023. If that’s the case, we are here to assist you with your query.

The following article sheds light on “How much does it cost to develop a chatbot in 2023.” Besides, it will reveal all the factors that affect the cost parameter. Moreover, it will demonstrate the chatbot pricing models and the must-have features that are generally included in chatbot development.

Crucial Factors Affecting the Cost of Chatbot Development

Chatbot development is a disparate process. Henceforth, it is quite difficult to estimate the chatbots pricing. Though, the preceding factors are frequently encountered during the development of chatbots.

Before we jump into the detailed pricing approximation packages and policies, let’s first discover the aspects in detail that vary the pricing factor.

Factors that Influence the Cost for Chatbot Development

Business Requirements

The first and foremost factor which influences the chatbot costs is your business needs and demands.

In reality, the chatbot is not an ordinary type of software. Instead; chatbots are normally a kind of software container in which the information is stored and carried away. Therefore, you must have a clear vision of what sort of chatbot you want to introduce for your business.

Typically, two distinct types of chatbots are accessible in mainstream markets. For instance,

·         Distributing chatbots (H&M’s)

·         Simple FAQ chatbot

Both categories are based on distinct development scopes and pricing strategies. Plus, the cost parameter also varies regarding which type of category you want to invest in.

Moreover, it depends on the features and functionalities you require for your bot.

Lastly, and most importantly the price estimation also depends on the technicalities and complexities that could occur during development.

Our expert team of developers will assist you in deciding which category would be best based on your business needs. Connect with us today to get an estimate for your project.

Chatbot Type

Chatbots are readily available in different types and sizes.

In general, Rule-based bots and AI chatbots are quite popular and normally used.

The former one has a decision tree type of conversation flow, though, the length and the complexity varies depending on your requirements. In contrast, the latter one develops with the assistance of NLP engines, such as Dialog flow.

Both establishments involve challenges and complexities. Thus, it’s a wiser idea to reach out to an expert software development company.

  • Need assistance? Figure out the best strategy for your chatbot development
  • Book a free one-to-one consultation today.

Chatbot Integrations

Another parameter that helps to analyze the cost factor is what type of tools you want to integrate into your bot.

Basically, chatbot integrations are considered as anything that your bot will require to plug into.

Chatbot Integrations

There are numerous integration tools available and used worldwide. Some of them are,

  • Customer services tools like Zendesk
  • CRM systems like Salesforce, Zoho, and HubSpot
  • Utility apps like Google sheets, Zapier, and Airtable
  • Social channels like Twitter, Whatsapp, Messenger, and Facebook
  • Payment platforms like Amazon Pay and Pay Pal
  • CMS systems like WordPress and Magento

Chatbot Design and Development

Chatbot design and development is a diversified procedure. It includes everything from defining the goals and objectives to writing the codes, and making it appealing and engaging to an extent that it ensures that the conversation fulfills its needs and goals.

In other words, the design and development parameters also depend on the level of conversation you intend to achieve from your chatbot for your consumers.

For an illustration, think in this manner. Do you want your bot will perform as end-to-end assistance? Or do you need a special communicator who handles all the onboarding customer process and appoint them to a live mediator?

To sum up, if you decide that your chatbot manages all your business operations and workflows. Ultimately, the chatbot development time will be longer. Thus, resulting in a higher development cost.

Chatbot Use Cases

Based on the industry and your business goals, chatbots could have numerous use cases.

For example, it can be utilized in order to acquire leads, schedule bookings/appointments, and training employers, etc.

Some of the most common examples of chatbot use cases in businesses are;

·         Entertainment – Activision

·         Fashion – H & M

·         Media – The Washington post

·         Food and Beverage – Taco bell

·         Finance – PayPal, Stripe, etc.

Overall, chatbot use cases will help you in finalizing the integrations you must have in your bot.

Ultimately, the cost factor will help you in calculating the end cost for your chatbot.

Chatbots Pricing Models: The Rough Estimate

The cost of a chatbot widely depends on the overall scope of your project and the features and functionalities you intend to integrate into your bot.

Below, we have listed down the three distinct chatbot pricing models based on various types and sizes of businesses.

Custom Chatbot

Custom chatbot development can help businesses to automate customer interactions and create a more personalized and engaging customer experience.

custom chatbot

Platform-Based Chatbot

Platform-based chatbot development can help companies quickly and easily deploy powerful AI-driven chatbots, allowing them to deliver tailored experiences for their customers.

This type of chatbot is usually designed based on business size and goals. They are generally categorized into three major categories;

Small Size Business

Mid-Level Business

Enterprise-Level Business

platform based chatbot

Ready-Made Chatbot

Ready-made chatbots can provide instant customer service, reduce customer service costs, and improve customer satisfaction.

In general, the below-stated packages are usually included in the category.

chatbot cost

Remember the packages mentioned above are only an approximation. And to obtain the exact information regarding custom chatbot development services, you can reach out to us at TekRevol. We are a rewarding mobile app development company offering digital services and solutions for a long haul. We have successfully completed 100+ projects in the past few years. And, we are on the journey to help more businesses and enterprises to transform their vague ideas into reality.

While working with us, rest assured, your brand can grow exponentially and would reach a larger-scale solution further down the line within no time.


Must-Have Features for an Advanced Chatbots Development

Advanced Chatbots Development

  • Natural Language Understanding (NLU): This feature allows the chatbot to understand and interpret the intent and context of the user’s input, allowing for more accurate responses.
  • Natural Language Generation (NLG): This feature allows the chatbot to generate human-like responses, making the interaction more natural and engaging.
  • Multi-Language Support: This feature allows the chatbot to understand and respond to user input in multiple languages, making it more accessible to global audiences.
  • Contextual Awareness: This feature allows the chatbot to understand the context of the conversation and provide relevant information or responses.
  • Voice Recognition: This feature allows the chatbot to recognize and respond to voice commands, enabling hands-free interactions.
  • Advanced Analytics: This feature allows for the tracking and analysis of user interactions, providing insights into user behavior and preferences.
  • Personalization: This feature allows the chatbot to tailor responses and interactions to specific users, providing a more personalized experience.
  • Integration: This feature allows the chatbot to connect with other systems, such as CRM or e-commerce platforms, providing a seamless and efficient experience for the user.
  • Scalability: This feature allows the chatbot to handle a large number of users and interactions at once, making it suitable for enterprise use.
  • Visual Recognition: This feature allows the chatbot to recognize and respond to visual inputs, such as images or videos, making it more interactive.By incorporating these advanced features, chatbots can provide a more natural and engaging experience for users while also increasing efficiency and providing valuable insights.

How to Reduce the Cost of Chatbot Development?

As we have mentioned earlier, there are various aspects involved in determining the cost of chatbot development.

Though, we can realize it’s not possible for every business to afford the financial pressure in the first place. Therefore, we have compiled a list of some ways that help in reducing the cost of chatbot development.

Use Pre-Built Chatbot Platforms:- Platforms such as Dialogflow and Botkit provide pre-built chatbot templates and integrations that can save time and money on development.

Make Use of Third-Party Platforms: – Third-party platforms are another tremendous ways to diminish the chatbot development time.

The most distinctive benefit of using these kinds of platforms is that you don’t need to create a bot from scratch. Instead, you can easily develop a bot within no time by building a conversation structure and links between the chats.

Some of the most reputable third-party channels are – Chatfuel and Botsify.

Make Use of Development Tools and Frameworks:- Do you already own a chatbot? Wondering how to integrate advanced features in your bot without investing hefty amounts? This is exactly where development tools and frameworks come into play.

Some of the exquisite examples are – BotMan and Microsoft Bot Framework.

Utilize Open-Source Libraries: There are several open-source libraries such as NLTK and Rasa that can be used to build chatbots, saving the cost of developing them from scratch.

Keep the Chatbot Simple: Complex chatbots with multiple features and integrations can be costly to develop and maintain. Keeping the chatbot simple and focused on a specific task can reduce development costs.

Outsource the Development: Outsourcing the development of the chatbot to a third-party company or freelancer can be a cost-effective option. The reason is that it allows for access to a larger pool of developers with varying skill sets and experiences.

Use Cloud-Based Hosting: Hosting the chatbot on a cloud-based platform such as AWS or Azure can save on server and infrastructure costs.

Use natural language processing: Natural Language Processing (NLP) technologies like machine learning can help to make the chatbot more efficient, reducing the need for large amounts of code.

Reuse Existing Code: Reusing existing code can save a lot of time and effort, allowing you to focus on improving the chatbot’s core functionality.

Testing Rigorously: Testing the chatbot throughout the development process can help to identify and fix any issues early on, reducing the need for costly rework.

By implementing these strategies, you can significantly cut down the cost of developing a chatbot while still delivering a high-quality product that meets your users’ needs.

  • Wondering what features and functions to include in your bot?
  • Our team will be keen to assist you in deciding the bot features, functions, and tech stack needs free of charge.


Final Thoughts

The utilization of chatbots can prove to be a cost-efficient measure for businesses. However, it is crucial to conduct thorough research and devise a strategy that aligns with the specific needs and goals of the organization.

Careful consideration should also be given to ensuring that the financial investment in the implementation of a chatbot does not exceed the capacity for affordability.

Gradual implementation, starting with a basic solution and gradually transitioning to more advanced options as the return on investment justifies the further investment, maybe a prudent approach.

The decision-making process can be complex. Though, obtaining a demonstration and consulting with experts in the field can aid in understanding the costs associated with chatbot implementation.

Also, connecting with experts assist you in selecting the most appropriate plan for your business.

We are available to provide guidance and assistance in this regard. Click here and connect with our adept professionals now.

Frequently Asked Questions:

There is no definitive cost mentioned anywhere regarding the cost of building chatbots. In general, the price range lies between $20,000 to $70,000 depending on the complexity of features, functionalities, response types, stimulated time frame, and your budget.

A simple chatbot takes around 2-3 months in order to develop. However, the complex AI chatbot usually takes anywhere between 6-8 months or a year, too. The end product is based on your business goals and needs.

Normally, two types of chatbots are accessible worldwide. Rule-based and AI-based.

For the former one, you can choose a bot maker from Chatfuel, Botsify, QnA Maker, and In contrast, for the latter one category, you can make use of IBM Watson, Microsoft Bot Framework, and Amazon Lex.

Author : Mariam A.

Mariam Amin is an Electronics Engineering graduate. As a content marketer, with her insights on engineering and digital strategy, she showcases informative guides and content that is built on imparting knowledge. When away from marketing and the digital landscape, you can find her looking over the food industry, and fitness trends, and catching up on a documentary or a movie.

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501 E Las Olas Blvd Suite
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Red Deer, ABT T4N 2G7

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