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Artificial Intelligence Software Development Cost in Dubai, UAE

224 Views | 5 min | Published On: March 7, 2024 Last Updated: May 6, 2024

Wondering about the cost of Artificial Intelligence software development? 

There’s no doubt that Artificial intelligence can do a lot - from improving processes to predicting customer behavior and fine-tuning marketing strategies. But, stepping into AI development isn’t just about installing software, indeed it’s about grasping its intricacies and financial implications. 

This blog breaks down the burning question - “what is the cost of building AI software in Dubai, UAE”?

Estimated Cost of Developing Artificial Intelligence Software in Dubai, UAE

There is no one-size-fits-all formula to answer the most pressing question of developing AI software. Indeed, there are numerous elements that contribute to AI software development cost, varying from the business domain, features, and functionalities, to the project’s complexity, platform selection and AI development company.  

Also, unlike conventional software development processes, AI projects envelope a unique amalgamation of data science, machine learning, and algorithmic complexity, which collectively contributes to the development cost. As a ballpark estimation, AI software development costs can rise to $400,000, depending on the project requirements.  

Following is a rough estimate for different kinds of AI projects: 

  • For a small-scale AI project, expected costs start from <$8,000. 
  • For medium-scale projects, budgets circumscribe around < $20,000.
  • In Enterprise-level projects like advanced healthcare diagnostics or autonomous vehicles, the required investments may vary from <$50,000.

But if you are still perplexed and are looking for a precise estimate of software development costs, discuss your project requirements with a reputed  AI development company in Dubai. While discussing your project, don’t skip to delve into the project details to prevent any unforeseen expenses down the line.

Factors That Define The Artificial Intelligence Software Development Costs 

Factors That Define The Artificial Intelligence Software Development Costs 

1. Project Type

The first and inescapable factor involves evaluating whether a custom or off-the-shelf AI solution meets your project requirements. 

A custom solution consists of building and training Artificial Intelligence solutions from scratch to align with your objectives. Whereas, off-the-shelf AI comprises pre-structured algorithms tailored for specific purposes, enabling integration into your business operations with adaptability. 

Successful AI integration depends on meeting business expectations and specifications, necessitating a thorough process from ideation to deployment. Custom AI development, in consideration of the customization of ERP software, demands significant time and effort, with costs varying from $5,000 to $150,000.

2. Data Requirements

Artificial Intelligence efficacy is contingent on data quality, quantity, and accessibility for model training and refinement, which is directly related to project costs. 

Thus, gathering, organizing, and refining data necessitate time and resources, thereby contributing to increasing overall project expenses. Plus, remember projects mandating voluminous high-quality data may incur elevated infrastructure costs.

3. Advanced AI Tech Solution Development

It goes without saying that advanced AI projects heavily rely on high-speed hardware, especially specialized software, and computing resources. Evaluating the cost implications of cloud-based versus on-premises solutions is inescapable. In layman’s terms, infrastructure costs may escalate for projects demanding substantial computing power.

4. Hardware Expenditure

Whether developing AI software internally or outsourcing to a third party, hardware remains a necessary expense. 

So, when partnering with a company for AI software development in Dubai, remember hardware expenses come separately from the software development cost, as conventionally the estimated cost focuses on software development. 

However, executing AI algorithms necessitates robust computing power for data processing and analysis. This requires a specialized infrastructure capable of managing extensive computations, thereby requiring investment in both hardware and AI software development

Let’s have a look at the commonly used hardware for AI software development. 

commonly used hardware for AI software development
  • GPUs

Graphics Processing Units are crucial for training neural networks because of their architecture, which makes them a perfect choice for the parallel processing requirements of machine learning. Unlike traditional CPUs (Central Processing Units) that manage numerous computational tasks sequentially, GPUs can handle multiple tasks simultaneously.

  • FPGAs

Field-Programmable Gate Arrays, aka FPGAs, cater as another hardware option for AI applications. Though they are less expensive than GPUs, they still offer substantial computational power. However, programming FPGAs can be an onerous task, limiting their suitability for certain applications.

  • ASICs

Application-Specific Integrated Circuits are specialized chips designed for specific tasks. Although they may incline towards an expensive side, they deliver high performance and are leveraged in complex AI applications.

Often, these hardware options are provisioned in several ways, including on-premises (using physical servers), in the cloud (leveraging third-party servers), or through a hybrid approach blending both. 

To simply put, each deployment approach has its advantages and considerations. On-premises hardware offers full control over the environment but can leave a burning hole in your pocket when setting up and maintaining. Whereas, cloud-based hardware is often more cost-effective but may offer less control over the underlying infrastructure.

5. AI Software Feature Integration

Often, the inclusion of specific features in AI software distinguishes it from other conventional solutions. 

The feature selection process depends on task requirements; for example, natural language processing is essential for text generation and question answering, while deep learning is inevitable for machine learning. In addition, integrating speech and image recognition enhances AI functionality.

In essence, feature integration significantly impacts AI development costs, with industry-trusted features being crucial, albeit costly. 

6. Development Team (In-House or Outsourcing)

The composition of the development team plays a pivotal role in cost estimation. Unsurprisingly, small businesses investing in AI development teams spend upwards of $320,000 annually. 

The team typically fills many essential roles from data scientists, machine learning engineers, and AI developers to software developers, with costs influenced by skill level and team size. Besides, it also depends on the number of resources deployed on your project. 

7. Project Duration Timeline

The project duration also impacts the development costs. Elements like feature complexity and team composition affect project duration. 

A basic AI software version will be quicker and more affordable to develop in comparison to developing an MVP. Simply put, longer project durations, whether in-house or outsourced, entail increased time and effort, leading to higher costs.

8. Maintenance and Management

Maintenance and management of AI software can be managed internally or by an outsourced team. Though external teams may incur higher costs, they eliminate internal expenses like salaries. 

Maintenance ensures optimal performance and efficiency, aligning AI with business requirements.


The development cost of AI software in Dubai, UAE varies significantly on factors like the complexity of the system, the scale of deployment, and the specific industry needs of the business. 

Though simple chatbots and basic ML models may cost thousands, advanced computer vision or NLP systems leveraging emerging technologies like big data and deep learning can reach millions in terms of software, hardware, talent, and management overhead.

To your surprise, industry giants like Netflix, Google, Facebook, and Amazon invest billions annually in AI research and development, underlining the potential of AI to revolutionize businesses. Although the journey into AI implementation in 2024 can be both complex and rewarding, understanding your specific needs is crucial in making informed decisions, whether you're a small startup or a large corporation.

Fortunately, a trusted AI development company like Apptunix offers a streamlined, cost-effective entry point into AI, minimizing the need for extensive technical expertise. While the cost of AI is a significant consideration, it's equally crucial to recognize the value it brings to business processes, customer engagement, and competitive edge.

Don’t forget, that as AI continues to evolve, businesses have the opportunity to harness its power efficiently and economically for long-term success.


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