Chatbot Development Cost in 2024
March 3, 2024

In the tech-friendly era of customer service and business operations, one technological revolution has swept through like wildfire- It’s the era of ‘Mighty Chatbots’! 

We know that your mind must be brimming with several questions like- 

Before talking about the cost, let us clarify the fact about why chatbots have swiftly become an indispensable tool for every business out there and are clamoring to integrate. 

Well, from helping out with tasks, tackling FAQs, and giving that extra personal touch to elevate the whole support experience, chatbots are like having a super-efficient team member that's available around the clock!

Don’t you think all of these aspects suffice the reason behind the surge in demand among businesses? Are you still not convinced?

Don't take our word for it because the numbers speak volumes

  • It is estimated that the income generated by the chatbot sector is roughly $137.6 million as of 2023. It is further expected to generate $454.8 million in sales by 2027.
Chatbot Market Revenue
Chatbot Market Revenue

After seeing the above stats, don't you think that Chatbots have really taken the business world by storm?

What are Chatbots?

Chatbots are basically computer programs that are designed to simulate human conversation through text or voice interactions. They leverage artificial intelligence (AI) and natural language processing (NLP) to comprehend and respond to user queries or commands conversationally.

These virtual assistants rely on predefined rules and patterns, or more sophisticated machine learning algorithms, to process and interpret user inputs. Some chatbots operate based on decision trees, following a linear path of responses, while others utilize deep learning techniques to understand context and generate more nuanced replies.

Which sort of Chatbot fulfills your business requirement?

When it comes to chatbots, there's a diverse range of functionalities and capabilities, each tailored to specific business needs. Here are some of the primary types that fulfill different business requirements:

Rule-Based Chatbots

These are the pioneers in the chatbot world. They follow a set of predefined rules and patterns to determine responses. For instance, if a user inputs a specific keyword or phrase, the bot will generate a corresponding reply. While they're effective for handling straightforward, predictable interactions, they might struggle with complex or ambiguous queries.

AI-Powered Chatbots

Unlike rule-based chatbots, these sophisticated virtual assistants leverage machine learning algorithms. They learn from historical data and user interactions, continually improving their responses over time. AI-powered chatbots excel in handling dynamic, unpredictable conversations. They can grasp the context, understand the sentiment, and even make recommendations based on user behavior like that of ChatGPT.

Scripted Chatbots

These chatbots are a hybrid of rule-based and AI-powered bots. They follow a script or decision tree but are also capable of some level of natural language understanding. Scripted chatbots are popular in scenarios where a balance between structured interactions and flexibility in conversation flow is crucial.

chatbots for diverse business requirements

Application-Based Chatbots

These bots are designed to function within specific applications or platforms, such as messaging apps or websites. They often serve niche purposes, like helping users order food, book flights, or perform specific tasks within a confined environment.

Voice Assistants 

Voice Assistant chatbots interact with users through voice commands seamlessly. Popular examples include Amazon's Alexa, Google Assistant, and Apple's Siri. They're equipped with advanced speech recognition technology and can perform a wide array of tasks, from setting reminders to providing weather updates.

Hybrid Chatbots

As the name suggests, hybrid chatbots combine elements of different types to leverage the strengths of each. They might use rule-based responses for certain tasks and AI-powered algorithms for more complex interactions, offering a well-rounded user experience.

Understanding the different types of chatbots empowers businesses to choose the right one that aligns with their objectives, whether it's enhancing customer service, streamlining operations, or providing a more personalized user experience. Each type has its own set of advantages and considerations, making it essential to select the most suitable option based on the specific needs of the business.

How much does it cost to build a chatbot?

Understanding costing can be a bit tricky, be it a cost to build a chatbot, logo, or website, in general. So, unlike personal spending, running a business involves taking care of your clients, team, and the overall growth of the entire organization.

As a business owner, you need to think ahead and make sure you're spending money wisely to help your business grow.

We’re guessing you're not here for budgeting tips, though. You're probably interested in using chatbots for your business, which is a smart move. Now, you just need to figure out how much it will cost. Let’s see!

Chatbot Development Cost Breakdown

The cost to build a chatbot can vary a lot depending on how complicated the project is and what features you need. Let's break down the estimated cost of creating an AI chatbot into three levels: Entry-Level, Difficulty Level, and Advanced Level.

Entry-Level Chatbot

An entry-level chatbot is a straightforward virtual assistant designed to handle fundamental queries and aid users through live chat and text-based interactions. Typically, it possesses modest capabilities and doesn't necessitate intricate integrations.

Features Cost
Platform $0 – $50/month
Design $500 – $1,500
Development $1,000 – $5,000
Testing $500 – $3,000
Total Cost $2,000 – $10,000

Difficulty Level

The Difficulty Level chatbot boasts advanced features, potentially linking seamlessly with external services or APIs. This means it's equipped to tackle intricate questions and offer users even more tailored responses.

Features Cost
Platform $50 – $300/month
Design $1,000 – $2,500
Development $5,000 – $15,000
Testing $1,000 – $2,500
Total Cost $8,000 – $20,000

Advanced Level

A sophisticated chatbot, known as an advanced-level chatbot, is a highly intricate virtual assistant that demands expertise in programming and seamless integration with various APIs and external services. It possesses the capability to address intricate inquiries and furnish users with refined and nuanced responses.

Features Cost
Platform $300 – $500/month
Design $2,500 – $5,000
Development $15,000 – $100,000
Testing $2,500 – $5,000
Total Cost $25,000 – $110,000

The above chatbot cost breakdown is as per the difficulty level but what about when it comes to platforms? Does the chatbot cost money more than expected when it comes to the features?

contact us for chatbot development

Do you even need a Chatbot for your business?

To answer this question, we turned to none other than ChatGPT itself to get the inside scoop. Whether you're ready or not, chatbots are making some serious strides, and at the forefront is none other than ChatGPT.

And here's what it had to say:

do you even need a Chatbot for your business

It more or less answers the question perfectly fine, doesn’t it? But, to add to it, here are some more reasons why your business might be in dire need of creating an AI chatbot.

Relieved Customer Service Agents

If your customer support team is frequently swamped with tasks, a chatbot can be a game-changer. Studies predict that businesses will save an astonishing 2.5 billion customer service hours by the end of 2023, thanks to chatbots. So, as a leader, ask yourself: Are my agents constantly busy? Do we deal with a high volume of repetitive queries? Would I prefer my agents to step in only when needed? If these resonate, a chatbot could be the answer.

Uninterrupted Support

How vital is continuous accessibility for your customers? If constant availability is a priority, but having human agents on call 24/7 is impractical, a chatbot steps in seamlessly. It ensures your customers feel valued and cared for, even during off-hours or busy periods.

Enhanced User Experience

In today's market, customer experience reigns supreme. A well-implemented chatbot can engage customers effectively right from the start. It can resolve issues empathetically, connect frustrated customers to live agents swiftly and offer round-the-clock availability. By effortlessly navigating data, AI-powered chatbots also foster trust with customers, elevating their satisfaction levels.

Lead Generation

Looking to leverage every channel for lead generation? Chatbots are your secret weapon. They can gather valuable information through pre-chat forms on your website. Additionally, they conduct surveys, ask targeted questions, and provide tailored product recommendations. This personalized experience piques potential clients' interest, driving lead-generation efforts.

Affordable Alternative to Custom Apps

Building a custom app from the ground up can be costly and time-consuming. Enter chatbot platforms, or ‘Bot builders’. They offer affordable and customizable conversational solutions. Integrating seamlessly with Helpdesk systems and CRMs, these platforms enable accessibility across various channels, including mobile, web, social media, and messaging platforms. A cost-effective alternative to custom apps that doesn't compromise on functionality.

How much does Chatbot cost as per their models/platforms?

The cost of building an AI chatbot is heavily contingent on the project's overall scope, as well as the specific features and functionalities you envision integrating into your bot.

Here, we outline three distinct pricing models for chatbots, tailored to different types and sizes of businesses:

Cost of Custom Chatbot

Custom chatbot development empowers businesses to automate customer interactions, leading to a more personalized and engaging customer experience. Therefore, the monthly cost of a Custom Chatbot ranges from $5,000- $20,000/month.

Custom chatbot

Cost of Platform-Driven Chatbot

This approach to chatbot development facilitates the swift and straightforward deployment of robust AI-driven chatbots, enabling companies to provide customized experiences for their clientele.

These chatbots are typically tailored to suit different business sizes and objectives and are broadly categorized into three main segments:

- Small Business Scale

Ranges from $30,000 - $100,000/month

- Mid-Level Business Operation

Ranges from $50,000 - $100,000/month

- Enterprise-Level Business Endeavor

Ranges from $100,000 - $200,000/month

Platform-Driven Chatbot

Cost of Pre-Made Chatbot Solutions

Ready-made chatbots offer immediate customer service, cost savings in customer support, and an overall enhancement in customer satisfaction. Its cost ranges from $0- $1000+/month.

Pre-Made Chatbot Solutions

What if the above cost breakdown doesn’t suit your budget?

The idea of creating a bespoke customized chatbot tailored to your exact needs is enticing. Yet, truth be told, most businesses don't necessitate such an extensive endeavor to streamline customer service or sales operations.

And as for the price tag? It can start from an astonishingly low base of absolutely nothing. Yes, the pricing begins from surprisingly $0.

So, how much does a chatbot cost if done using templates? Is it worth it?

Here are some tailored options for small businesses looking to invest in chatbot technology:

  • Interactive Customer Support Bots - These nifty chatbots are your go-to for customer service. They handle everything from frequently asked questions to providing store directions and services. But wait, they're not your run-of-the-mill phone menu. We're talking about chatbots that bring in the fun with GIFs and engaging interactions.
  • Website Assistant Chatbots - These are the virtual assistants right on your website, helping users find exactly what they're looking for. With a simple plugin and a chatbot, you've got user support at its finest.
  • Effortless Scheduling and Registration Bots - Say goodbye to appointment-setting headaches! Whether you're running a beauty salon, coaching sessions, or a dental office, a chatbot can seamlessly handle all scheduling tasks. This means your office team gets more time to focus on strategic initiatives, and you save on staffing costs for administrative work.
  • E-commerce Transaction Bots - Ready to elevate your online sales with budget-friendly tools? These chatbots are the ultimate booster for e-commerce businesses. They handle transactions with finesse, from offering discounts and coupons to sending out receipts and providing shipment tracking information.
  • Lead Generation bots - These chatbots are your secret weapon for marketing. They zero in on lead generation, capturing and nurturing prospects through savvy tactics like drip campaigns.

But here's the best part- you can try all of these chatbots effortlessly using the range of chatbot templates, however, that personal touch would still be missing. Yes, using templates could hamper your overall user experience since it is not that personalized as compared to the custom chatbots. 

Does it seem too overwhelming? Don’t worry. We’ve got you covered! So, what’s the way forward if you don’t have the required budget for building an AI chatbot?

Here are some strategies that can reduce your chatbot development cost

As previously discussed, several factors contribute to the overall expenses of chatbot development.

However, we understand that not every business may be equipped to handle the initial financial investment. That's why we've put together a set of strategies aimed at alleviating the cost burden associated with building an AI Chatbot.

Leverage Third-Party Platforms

One effective way to expedite the process of creating an AI chatbot is by tapping into third-party platforms. These platforms offer a distinct advantage - you don't have to start from scratch. Instead, you can swiftly construct a bot by establishing a conversation framework and linking chats. Notable platforms like Tensorflow and Botsify are trusted choices.

Development Tools and Frameworks

If you already have a chatbot in place and wish to incorporate advanced features without a hefty investment, development tools and frameworks are the answer. BotMan and Microsoft Bot Framework, for instance, provide excellent options.

Embrace Open-Source Libraries

Embracing open-source libraries like NLTK and Rasa can be a cost-saving approach to building an AI chatbot, avoiding the expense of creating them from the ground up.

Simplicity is Key

Elaborate chatbots loaded with numerous features and integrations can rack up development and maintenance costs. Streamlining your chatbot's functionality to focus on specific tasks can help curb expenses.

strategies that can reduce your Chatbot Development Cost

Consider Outsourcing Development 

Engaging a third-party company or freelancer for chatbot development can be a cost-efficient move. This approach grants access to a wider pool of developers with diverse skill sets and experiences for building an AI chatbot.

Opt for Cloud-Based Hosting 

Opting for cloud-based hosting on platforms like AWS or Azure can lead to significant savings on server and infrastructure expenses.

Use Natural Language Processing

Integrating technologies like machine learning-driven Natural Language Processing (NLP) can enhance the efficiency of your chatbot, reducing the need for extensive coding.

Reutilize Existing Code

Recycling existing code can be a major time and effort saver, allowing you to concentrate on refining the core functionality of your chatbot.

Prioritize Rigorous Testing

Vigorous testing at various stages of development aids in early detection and rectification of issues, minimizing the need for costly rework.

By adopting these strategies, you can substantially reduce the expenses associated with chatbot development, all while delivering a top-notch product that caters to your users' requirements.

get quote for chatbot development

What are the factors that influence Chatbot development costs?

So, now we have an idea about exactly how much does chatbot cost. However, if the required investment exceeds your budget, then how to go about it? 

Well, various factors influence the chatbot development cost. So, we have curated a list of 6 factors that majorly impact the pricing of chatbot development. Let’s read the factors in detail…

  • Choosing Deployment Type: Custom Development vs. Chatbot Builder

When it comes to deploying a chatbot, you have two main options. Firstly, you can engage a third-party development company for a custom-built chatbot tailored to your specific needs. Alternatively, you can opt for a chatbot builder, enabling you to create your own bot quickly with a high degree of customization.

  • Exploring Feature Sets: Basic vs. Premium

For creating an AI chatbot, companies typically offer a range of plans. Users can select from basic (the most budget-friendly) or premium (the more advanced and costly) feature sets.

What sets premium features apart? It boils down to the advantages they provide and the time they save. For example, a basic chatbot may offer a single bot, basic reporting, and a limited chat volume. Conversely, a premium chatbot unlocks a wealth of capabilities, including unlimited bots, robust data security, top-tier support, a dedicated account manager, and much more.

  • Evaluating Domain Numbers

Your chatbot's price tag may rise if you intend to deploy it across multiple domains and subdomains. For example, the domain for Google is ‘’. As a result, the sub-domains would be ‘’ or ‘’. Therefore, deploying separate bots for your homepage, blog, or FAQ pages will naturally incur additional costs.

factors that influence Chatbot development costs
  • Considering Internal Processes

Chatbots serve various purposes and can be implemented by different departments to automate customer interactions. For instance, the sales team may deploy bots for booking product demos, while customer service teams use them to handle routine inquiries. The cost will rise in proportion to the number of internal processes your business aims to automate.

  • Selecting Bot Type: Scripted vs. AI-powered

Scripted chatbots rely on predefined logic to respond to common queries, akin to an Interactive Voice Response (IVR) system. They excel at addressing frequently asked questions. In contrast, AI-powered bots leverage artificial intelligence and machine learning to remember conversations and personalize interactions based on historical data.

Scripted bots are simpler and more budget-friendly to build and deploy, while AI-powered bots, employing sophisticated algorithms, come with a higher price tag.

  • Factoring in Integrations

Chatbot pricing can also hinge on the availability of integrations with third-party tools, e-commerce platforms, and applications. Robust integrations empower your team to streamline workflows, collaborate seamlessly across departments, and manage data effortlessly. Common integration options encompass Customer Relationship Management (CRM) systems, Content Management Systems (CMS), email marketing platforms, helpdesk software, and more.

The above points are the perfect bifurcation to help you out in knowing about the factors responsible for influencing the development of AI chatbot cost.

However, sometimes developing a chatbot in-house gives rise to so many delays and budget issues. Therefore, it’s advisable to outsource an experienced AI chatbot development company to ease the process for you.

How can Antino help you build a custom chatbot for your business?

The collaboration of AI and Chatbot technology is making waves in almost every sector making all the operations convenient and effective by delivering contextual and personalized responses. 

Though the future of chatbots is looking bright, the growing adoption of chatbot development services proves the competitive benefit of investing in the technology over those who are still wondering about their next move.

So, if you’re the latter, then let us tell you that chatbots have become a necessity for businesses to enhance their relationships with customers. But to build a custom chatbot, you need the help of an experienced Chatbot Development Company. Well, that’s where Antino comes into play. Therefore, if you want to build a robust chatbot for your business, then get in touch with our experts right away!

Key Takeaways

  • Chatbots have become essential for businesses, offering assistance with tasks, FAQs, and personalized support available 24/7.
  • A substantial 73% of businesses are already using or planning to implement AI-powered chatbots, with the sector projected to generate $454.8 million in sales by 2027.
  • There are various types of chatbots including rule-based, AI-powered, scripted, application-based, voice assistants, and hybrid bots, each tailored for specific functionalities.
  • Businesses benefit from chatbots by relieving customer service agents, providing uninterrupted support, enhancing user experience, boosting lead generation, and offering a cost-effective alternative to custom apps.
  • Chatbot development costs vary based on complexity levels: Entry-Level ($2,000 – $10,000), Difficulty Level ($8,000 – $20,000), and Advanced Level ($25,000 – $110,000).
  • Small businesses can leverage tailored chatbot options like interactive customer support bots, website assistant chatbots, scheduling and registration bots, e-commerce transaction bots, and lead generation bots.
  • Implementing cost-reducing strategies such as leveraging third-party platforms, utilizing development tools, embracing open-source libraries, and prioritizing rigorous testing can substantially reduce chatbot development expenses.
  • Factors influencing chatbot development costs include deployment type (custom vs. builder), feature sets (basic vs. premium), domain numbers and subdomains, internal processes to automate, bot type (scripted vs. AI-powered), and integrations with third-party tools.
  • Outsourcing to an experienced AI chatbot development company can streamline the process, avoiding delays and budget issues associated with in-house development.
  • A rough estimate of chatbot pricing-

Custom chatbot development: Starting from $5,000- $20,000 per month to $500,000 per project.

Outsourced chatbot development: Ranging from $1,000 to $5,000 per project and beyond.

Small business chatbot software pricing: Between $0 and $500 per month.

Enterprise chatbot software pricing: From $1,000 to $10,000 per month and potentially higher.


How do chatbots benefit businesses?

Chatbots benefit businesses by providing instant customer support, automating repetitive tasks, and enhancing user engagement, leading to improved efficiency and customer satisfaction.

What is the future trend of chatbots?

The future trend of chatbots involves advancements in natural language processing, increased personalization, and integration with emerging technologies like AI-powered voice assistants, enabling more seamless and human-like interactions.

Looking to design your next app?
Talk to us and we will set you in the right path something something.
next story
Radhakanth Kodukula
(CTO, Antino)
Radhakanth envisions technological strategies to build future capabilities and assets that drive significant business outcomes. A graduate of IIT Bhubaneswar and a postgraduate of Deakin University, he brings experience from distinguished industry names such as Times, Cognizant, Sourcebits, and more.