Every AI app quote you get will be different. One says £20,000. Another says £150,000. Both claim they’re building the same thing.
Here’s what AI app development actually costs in London and what affects the price.
Base App Development Costs
Before adding AI, you’re building an app.
Simple mobile app: £15,000–£40,000
Basic functionality, standard design, iOS or Android only.
Medium complexity app: £40,000–£90,000
Custom design, both platforms, backend integration, user accounts.
Complex app: £90,000–£200,000+
Advanced features, real-time data, multiple integrations, scalability.
AI typically adds 30–100% to base costs depending on complexity.
AI Integration Costs
Using existing AI APIs: £5,000–£20,000
Integrating OpenAI, Google Cloud AI, or similar services with custom prompts and basic implementation.
Custom AI features: £20,000–£60,000
Training models on your data, custom machine learning algorithms, and specialized AI features.
Advanced AI systems: £60,000–£150,000+
Multiple AI models, real-time processing, complex decision-making, and large-scale data handling.
What Affects AI App Costs
Data requirements:
Existing datasets cost less. Data collection and labeling increase cost.
Large or real-time data significantly increases infrastructure expense.
Model complexity:
Simple classification is cheaper. NLP and computer vision cost more.
Multiple models and real-time predictions raise infrastructure costs.
Platform requirements:
Single platform costs less. iOS + Android nearly doubles cost.
Adding web increases cost by 30–50%.
Integration needs:
Standalone apps are cheaper. Multiple integrations and real-time syncing increase complexity and cost.
Scale and performance:
Small user base costs less. Enterprise scale requires significantly higher infrastructure investment.
Ongoing AI App Costs
AI API costs: £100–£5,000+/month
Usage-based pricing from OpenAI, Google Cloud, and AWS.
App hosting: £50–£500/month Backend servers, databases, and file storage.
Model retraining: £1,000–£5,000/quarter Performance tuning and accuracy improvements.
Maintenance: £1,000–£3,000/month Bug fixes, OS updates, and security patches.
App store fees: £99/year (Apple) + £25 one-time (Google)
Expected ongoing budget: £2,000–£8,000/month
Timeline Expectations
Simple AI app: 3–4 months
Medium complexity: 5–7 months
Complex AI app: 8–12 months
AI adds 1–3 months due to data preparation and model training.
Breakdown of Where Budget Goes
- Discovery & planning: 10%
- AI development: 30–40%
- App development: 30–40%
- Testing: 10–15%
- Deployment: 5–10%
Cost by AI App Type
AI chatbot app: £25,000–£60,000 (3–5 months)
Image recognition app: £40,000–£90,000 (4–6 months)
Recommendation app: £30,000–£70,000 (4–6 months)
Predictive analytics app: £50,000–£120,000 (5–8 months)
Voice AI app: £40,000–£100,000 (4–7 months)
ROI Calculation
AI apps should ideally pay for themselves within 12–18 months. Calculate efficiency gains, revenue generation, or cost reduction before investing.
Ways to Reduce Costs
- Start with an MVP to validate before scaling
- Launch on one platform first
- Use existing AI APIs where possible
- Limit scope and avoid feature creep
Red Flags in Pricing
- Under £15,000 for AI apps
- Over £200,000 for basic AI features
- Vague or non-itemized quotes
- No mention of ongoing costs
- 100% upfront payment requests
What AlgoSemantic Charges
Simple AI integration: £20,000–£45,000
Custom AI features: £45,000–£90,000
Complex AI apps: £90,000–£180,000
Includes discovery, development, testing, deployment, and 3 months support.
AI model development
is included in scope.
Planning an AI App?
Email us: contact@algosemantic.com
Call us: +44 7412 808430
AlgoSemantic. The algorithm behind your success.
