If you’re interested in chatbot app development, you’re probably wondering about the costs involved. Chatbot development is a complex process that requires a range of skills and expertise, from programming and artificial intelligence to user experience design and marketing. In this article, we’ll explore the key factors that can influence the chatbot development cost and provide a point-wise overview of the process. Whether you’re considering building a chatbot for your business or you’re simply curious about the process, read on to learn more about chatbot development services and the costs involved. As a leading chatbot development company, we have seen the evolution of chatbots, and we know what it takes to build a successful one.

Chatbots are already widely used in a variety of business situations. Chatbots have entered the market across businesses, doing everything from raising user levels of engagement to being a significant factor in the lead conversion process.


The fact that chatbots are popular with both millennials and baby boomers greatly expands the technology’s user base.


ChatGPT has changed the face of technology since its November 2022 introduction. The world has seen how transformative artificial intelligence will be thanks to the natural language processing (NLP) chatbot created by OpenAI. No industry or domain is untouched by an AI revolution known as ChatGPT, which can aid with anything from writing keynote speeches to passing university-level exams. It can also help marketers and programmers design and debug their programs.


Additionally, Google has issued a “code red” warning in anticipation of an existential danger to its monopoly in the search market due to Microsoft’s new investment in ChatGPT (the third by Microsoft since 2019). ChatGPT’s capabilities impress and inspire companies worldwide, and most want to use the technology to benefit their businesses.


Consequently, in our audience’s interest, we wanted to share our professional knowledge regarding how to create an app similar to ChatGPT and ChatGPT app development cost, which can range from $100,000 to $500,000 (more details later). We will also walk you through the technical and business aspects of developing such a chatbot. However, let’s first comprehend ChatGPT before further exploring the technical language.


The impact ChatGPT had on the tech sector also astounded us at Syndell.


The cost of creating a chatbot and other aspects of the game-changing technology will be examined in this article.


But first, let’s look at the thriving chatbot market before moving on to the chatbot portion’s cost-benefit analysis.



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Read More: Latest Digital Marketing Trends For 2023


Chatbot Market Research

Over the past ten years, chatbots have seen an incredible increase in demand from various global industries, including logistics and on-demand. Since the invention of mobile apps, what was formerly limited to only eCommerce has expanded to various other fields. All of this has been caused by the increasing integration of AI at increasing levels in the consumer experience.


The introduction of disruptive technologies like Machine Learning and Artificial Intelligence in the chatbot mechanism would be the primary factor driving the chatbot market size to $1.34 billion by the year 2024.


AI Chatbot Market Size is projected to Reach Multimillion USD by 2029, Compared to 2023, at an unexpected compound annual growth rate (CAGR) from 2023 to 2029.


Chatbots, whether intelligent or basic, are widely used in industries like all industries, especially in e-commerce, financial, insurance, healthcare, travel, and telecom, etc., through business data integration. These applications range from straightforward rules-specific chatbots developed to manage straightforward queries to cloud-based self-learning bots designed to understand user intent and automatically modify the output.


Chatbots will provide $1250 million by 2025 because they have shown to be so valuable in the world.


The market share that chatbots currently command makes one thing perfectly clear: Chatbots will play a major role in enterprises across a variety of sectors. Given the unique and unmatched business advantages they offer, why not?


We will tell you about the types of Chatbot applications available, the features to consider for a Chatbot, the benefits of a chatbot, the factors that affect the cost, and of course, the Chatbot development cost.


Read More: Machine Learning in E-commerce: Overview, Top 11 Use Cases & Benefits


What is a Chatbot?

Chatbot is a  software program or computer program designed to simulate human conversation. They can be used in various ways, from customer support to automating business processes. Chatbots use natural language processing (NLP) to understand user input and respond in a way that mimics human conversation.


Top Benefits of Chatbots

benefits of chatbot


Chatbots offer several benefits, including:


  • 24/7 Availability :

No matter the time of day or night, chatbots are always ready to help users.


  • Faster Response Times :

Chatbots can respond to user inquiries quickly and effectively, increasing overall customer happiness.


  • Cost Savings : 

By automating tasks and reducing the need for human customer service representatives, chatbots can help businesses save on labor costs.


  • Increased Customer Engagement : 

A more conversational interaction between users and chatbots results in a more customized and interactive experience.


  • Automation of Repetitive Tasks : 

Chatbots can take care of repetitive duties to free up human agents to work on more complicated problems.


  • More Generated Leads : 

Chatbots can help generate more leads by engaging with potential customers and gathering their information.


  • Increased Sales : 

Chatbots can assist in guiding customers through the sales process, leading to higher conversion rates.


  • Better Marketing : 

Chatbots can help improve marketing efforts by providing personalized recommendations and promotions to customers.


  • Decreased Bounce Rate : 

Chatbots can help reduce bounce rates by providing immediate assistance to customers, keeping them on the site longer.


  • Better Customer Insights : 

Chatbots can gather valuable data about customers, helping businesses better understand their needs and preferences.


  • Recruitment Support Available : 

Chatbots can assist with recruitment efforts by answering questions and guiding applicants through the process.


  • Better User Experience : 

Chatbots can enhance the overall user experience by providing quick and efficient assistance.


  • Multilingual Support : 

Chatbots can provide support in multiple languages, making it easier to reach a global audience.


  • Better Personalization : 

Chatbots can provide personalized recommendations and assistance based on customer data.


  • Easier Checkout : 

Chatbots can guide customers through the checkout process, making it more efficient and less frustrating.


  • Proactive Customer Service : 

Chatbots can provide proactive customer service by reaching out to customers with helpful information and assistance.


  • Faster Response Time : 

Chatbots can provide instant assistance to customers, improving response times.


  • Multichannel Support : 

Chatbots can provide support across multiple channels, including social media and messaging apps, making it easier for customers to get the help they need.



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Top 11 Different Types of Chatbots 

types of chatbots


There are three main types of chatbots: rule-based, AI-based, and Button-based. In this section, we will provide an overview of each type.


  1. Rule-Based Chatbots

Rule-based chatbots follow a predefined set of rules to respond to user input. They are less complex than AI-based chatbots and are typically used for simple tasks like answering frequently asked questions.


A multilingual chatbot might be the answer for you if you can anticipate the kinds of inquiries your clients would ask. Chatbots that use linguistic or rule-based automation generate conversational automation processes utilizing if/then logic. Your chatbot’s language requirements must first be established. Criteria can be made to evaluate the words, their placement in a sentence, synonyms, and more. Your consumers can receive the necessary assistance right away if the incoming inquiry satisfies the criteria set forth by your chatbot.


But, it is your responsibility to make sure that every variation and pairing of every question is defined; otherwise, the chatbot won’t be able to grasp what your customers are saying. Because of this, language models, despite being quite common, might take a time to develop. These chatbots require precision and stiffness.


  1. AI-Based Chatbots

Artificial intelligence (AI)-based chatbots use machine learning algorithms to understand and respond to user input. They are more complex than rule-based chatbots and can handle more complex tasks like natural language processing and sentiment analysis. AI-based chatbots collect data and learn on their own using the latest cutting-edge technologies.


  1. Button-Based Chatbots

A menu- or button-based Basic bots like chatbots are frequently utilized for their straightforward functioning. These bots provide their users with a variety of options via menus or buttons.


The response depends on the user’s choice. These bots, however, only have a few pre-programmed responses. When the query does not fit the bot’s pre-set questions and replies, it will not be helpful.


While these chatbots are sufficient for answering FAQs, which account for 80% of support requests, they fall short in more complex situations where there are too many variables or too much information at stake to confidently forecast how users should arrive at certain responses. Also, it’s important to note that menu- and button-based chatbots are the slowest in guiding users to their desired values.


  1.  Voice Bots

A voice bot is a text-to-speech and voice-to-text communication tool that uses AI and natural language processing (NLP) or natural language understanding(NLU). Key speech signals are identified with the use of AI technology, which also helps choose the best conversational answer. The interaction is then finished by the text-to-speech (TTS) engine by converting the message into audio or voice.


These chatbots use voice recognition technology to communicate with users through speech, rather than text. They are commonly used in smart home devices, virtual assistants, and call centers.


  1. Hybrid Chatbots

These chatbots combine the use of both AI and human support to provide a seamless user experience. They are typically used in customer service, where the bot can handle basic queries and escalate more complex issues to a human agent.


Businesses like the sophistication of AI chatbots, but they aren’t necessarily equipped with the skills or the vast amounts of data necessary to support them. Therefore they decide to use the hybrid design. Between the simplicity of rules-based chatbots and the complexity of AI bots, the hybrid chatbot model offers the best of both worlds.


  1. Social Messaging Chatbots

These chatbots are designed to interact with users on social media platforms like Facebook Messenger, WhatsApp, or Twitter. They can be used for various purposes such as customer service, marketing, or even to provide personalized recommendations.


  1. Skills Chatbots

These chatbots are built to perform specific tasks such as ordering food, booking a flight, or playing music. They are usually integrated with third-party applications and services. Developers that have access to the skill’s source code can create custom chatbots for the skill and incorporate it into other platforms.


  1. Keyword-Based Chatbots

These chatbots rely on predefined keywords to understand user queries and provide appropriate responses. They are relatively simple to build and are commonly used for customer support and basic informational queries.


Customizable keywords and NLP are used by these chatbots to identify conversational action triggers and determine how best to reply to customers. These chatbots may struggle, though, if there are lots of questions that are identical. If there are keyword repeats across several related queries, the chatbots can start to struggle.


  1. Support Chatbots

These chatbots are designed to assist customers with queries related to products or services. They can handle a range of queries, from simple questions to complex issues. Also, These support chatbots are conversational platforms created specifically to offer post-purchase services and customer support. 


They do not disseminate offers, promotions, or other materials for customer involvement, in contrast to bots on social media or websites. Often, self-service portals and online documentation are home to this kind of chatbot, where users may go to get assistance and support. Internal uses of support chatbots include submitting employee paperwork, initiating IT problems, responding to HR inquiries, and more.


  1. Transactional Bots

These chatbots are used to facilitate transactions, such as buying products or services. They are often integrated with payment gateways and can handle various types of transactions.


It can support businesses in increasing their sales and marketing strategies, whether for appointment setting, lead generating, or payment collection. While chatting with the chatbot, users can complete transactions without assistance from a human.


  1. No Code or Low Code Chatbots

These chatbots allow users to create chatbots without the need for coding skills. They use a visual interface to create and deploy chatbots quickly and easily. The AI and machine learning (ML) algorithms that power chatbots have typically been built and developed using code to generate decision trees. For the purpose of creating chatbots, each programming language includes a web API. Many other libraries that enable Python or Java are utilized in the most common deployments in addition to PHP and Node.js.


MVP (Minimum Viable Product) Chatbot Features

chatbot features


Here are some additional features that could be added to a chatbot to enhance its functionality and user experience:


  1. Basic NLP:

The chatbot should be able to understand and respond to basic user queries and commands. This can include predefined responses to frequently asked questions and simple requests.


  1. Integration with a Single Platform:

The chatbot should be integrated with a single platform or channel, such as Facebook Messenger, to reach users where they are.


  1. Clear Menu Structure:

The chatbot should have a clear menu structure that allows users to navigate through different options and select the actions they want to take.


  1. Conversation:

A chatbot can provide a natural language conversation experience to users by using advanced NLP techniques and understanding context to provide accurate and relevant responses.


  1. Payment System:

Integrating a payment system into a chatbot can allow users to purchase products or services directly within the conversation, making the buying process more convenient.


  1. Geolocation:

A chatbot with geolocation capabilities can provide location-specific information, such as nearby stores or services, and tailor responses based on the user’s location.


  1. Personal Touch:

Personalization features, such as remembering user preferences and past interactions, can help to create a more engaging and personalized experience for users.


  1. Account Synchronize:

Integrating a chatbot with a user’s existing account, such as a social media or e-commerce account, can provide a seamless user experience and allow for personalized recommendations and actions.


  1. Basic Analytics:

The chatbot should have basic analytics capabilities to track user interactions and identify areas for improvement.


  1. Feedback Mechanism : 

The chatbot should provide users with the ability to provide feedback on their experience, allowing the business to improve the chatbot’s functionality and user engagement.


Applications of Chatbots for Business

  1. Appointment Scheduling or Booking Chatbots:

The healthcare, airline, and hospitality industries are where you’ll typically find appointment booking or scheduling bots. These bots assist customers in scheduling appointments with the business they are interacting with.


A lot of appointment bots are connected to Google Calendar, so once a customer schedules an appointment with you, it instantly creates an event, adds it to the calendar, and sends reminders to both the client and the business representative. The HR department also schedules interviews for new hires using HR chatbots.


The examples provided under this category include –

  • Doctor appointment scheduling
  • Salon appointment booking
  • Hotel room reservation
  • Restaurant table booking
  • Car rental reservation


  1. Customer Support Chatbots:

One of the most well-known chatbot examples has to be this one! The first thing that comes to mind when someone mentions a chatbot is the time we interacted with one for customer service. These AI chatbots carry out all the duties of a customer service person. And it really benefits them! These chatbots can be integrated into a customer’s many touchpoints, such as a self-service knowledge base, website, mobile app, etc.


Support chatbots are the best tool for enhancing customer care because of chatbot features including round-the-clock accessibility, quick and simple answers, instant responses, and live chat capabilities. It not only enhances communication between businesses and their clientele, but it also forges relationships with customers to win their loyalty. Additionally, they collect client feedback and forward it to your staff so you can address the issues.


They help to boost sales by making it simple for clients to communicate with your company through engaging conversations.


The examples provided under this category include –

  • Product support
  • Order tracking
  • Account Assistance
  • FAQs and information
  • Troubleshooting and technical support


  1. Marketing and Sales Chatbots:

Following customer care, marketing, and sales are the most common uses of chatbots. So, these intelligent bots are able to tailor the customer experience, have a higher capacity for engagement, reach a wider audience, analyze customer feedback and data, deliver pertinent notifications, and guide clients smoothly through the sales funnel.


The examples provided under this category include –

  • Lead generation and qualification
  • Product recommendations and upselling
  • Promotions and discounts
  • Customer feedback and surveys
  • Customer retention and loyalty programs


  1. Entertainment Chatbots:

These chatbots are created to entertain and engage users through conversational engagements, such as playing games, cracking jokes, or recommending relevant information based on their interests. The gaming, media, and sports industries, among others, can all use these chatbots.


The examples provided under this category include – 

  • Trivia games
  • Personality Quizzes
  • Music recommendations
  • Movie recommendations
  • Interactive stories and role-playing games


How to Build a Chatbot like ChatGPT?

how to develop chatbot


Now that we’ve covered the basics of chatbots let’s dive into the process of developing one. This section will provide a step-by-step guide to developing a chatbot.


Step 1: Determine the Goal of Your Chatbot – 

The first step in chatbot development is to define its purpose. Ask yourself what task you want your chatbot to perform. This will help you determine the type of chatbot you need and the features it should have.


Step 2: Select a Platform –

Several platforms are available for chatbot development, including Facebook Messenger, Slack, and WhatsApp. Choose a platform based on your target audience and the purpose of your chatbot.


Step 3: Plan the Flow of the Conversation –

The chatbot and user’s messages are what make up the conversation flow. Create a communication flow that is simple to understand and follow.


Step 4: Develop the Chatbot –

It’s time to create the chatbot after creating the discussion flow. Writing code and integrating it with the platform of your choice are required for this.


Step 5: Testing and Refine –

Testing is an important part of chatbot app development. Test your chatbot with real users and refine it based on their feedback.


Best Practices for Chatbot Development

In this section, we will provide some best practices for chatbot development.

  • Keep the conversation flow simple and intuitive
  • Use natural language processing to understand user input
  • Provide clear and concise responses
  • Include error handling to handle unexpected user input
  • Test your chatbot with real users before the launch


How Much Does It Cost to Create a Chatbot?

The introduction of new tools, frameworks, and libraries has made it simpler for many people to purchase chatbot technology.


The cost of developing a chatbot might range from $5,000 to $150,000 because it is determined individually for each situation.


For a customized bot, the majority of software agencies and businesses charge between $15,000 and $31,000. Some businesses have placed the lowest price for a simple bot at $30,000.


An expert AI chatbot for post-purchase support costs between $20,000 and $80,000 more than standard bots. These bots, which are produced using NLP and ML technologies, have significantly more practical capabilities for taking in and learning new information.


They can conduct consumer research through media and marketing initiatives, manage the delivery of information and individualized news, and more. When used in conjunction with payment services, those chatbots are effective full-fledged commercial problem solvers.


You can begin by using a standard chatbot software to automate your daily tasks and then switch to an AI bot if the first app proves to be effective.



Every business owner is aware of the benefits of using chatbots. Because of their capacity to identify and meet customer demands, chatbots are in high demand.


The majority of organizations currently use chatbots, and the remainder is leaning towards creating their own.


Now that we have covered everything from the advantages of chatbots to the features and components that go into creating a well-structured chatbot to the market size, the type, and the chatbot development, from understanding what chatbots are and their benefits to the step-by-step process of creating one, the only thing left to do is get in touch with our chatbot developers and take advantage of the best chatbot app development company in the worldwide.