From Concept to Launch: A Guide on How to Build an AI App
Let this straightforward yet practical guide walk you through the entire process of how to build an AI app from initial concept to launch and maintenance.
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More chaptersCan you imagine how big the AI market size is at the present? It was valued at over $600 billion (November 2024). The figure is projected to grow to over $2,740.46 billion by 2032 (Fortune Business Insights).
Of course, numbers don’t lie. The potential for artificial intelligence and its relevant technologies is still vast and not yet fully tapped. Hence, now is the right time for developers and business owners to jump in and start either integrating AI-powered applications into their operations or building their own custom solutions for commercial use. Getting started with AI ventures is no easy game but a long-term investment. That’s why any beginner needs a solid foundation before proceeding any further. So, don’t rush.
This guide is provided with a goal of preparing your everything to build an AI-powered app from scratch. Enough talking; let’s dive into what beneath the surface of an AI application.
Key Takeaways:
AI app development involves multiple phases that must be accomplished with thorough preparation and strategic execution. It can be a journey of hardship and discomfort or an exciting opportunity for innovation and growth with the right planning and approach. Here are a few tips on how to build an AI app with less stress:
- Start by gaining a solid understanding of artificial intelligence and the key components of a standard AI-powered application.
- Establish your own development cycle or adopt proven best practices. We’ve outlined key strategies to help you in this article - read on to learn more.
Understanding the Foundation of an AI Application
An AI software application is well-built if it is developed on a solid foundation.
Components of an AI Application
Firstly, we will go to the core components that AI software is built upon.
Learning
This is the fundamental process through which an AI model or system acquires data (or knowledge) and enhances its performance across various tasks without being explicitly programmed. There are three learning paradigms:
- Supervised Learning: AI systems are trained on labeled datasets to map inputs to desired outputs. The algorithm identifies patterns in the training data to generalize and make predictions on unseen data. This learning paradigm is often used in image classification, fraud detection, and predictive analytics.
- Unsupervised Learning: This paradigm deals with unlabeled data. It falls to the algorithm to uncover hidden patterns or groupings within the provided data. Unsupervised learning is suitable for customer segmentation and recommendation systems.
- Reinforcement Learning: This learning paradigm simulates how humans process knowledge. AI systems learn in the trial-and-error method in which the algorithm tries varied repeated attempts to one problem and receive feedback in form of rewards or penalties. It adjusts its actions to maximize cumulative rewards over time and memorizes the successful patterns in its databases for future use.
Reasoning
This is an important component that enables artificial systems to simulate human-like thought processes for problem-solving and decision-making. AI reasoning involves drawing logical inferences from available data or scenarios and implementing logical rules to draw conclusions. There are various reasoning approaches:
- Deductive Reasoning: This is a logical process that starts with general premises, principles, or rules and applies them to particular cases in order to derive conclusions. Deductive reasoning ensures logical certainty if premises or rules are accurate.
- Inductive Reasoning: In the opposite direction, inductive reasoning draws generalized conclusions from specific observations. This approach allows AI systems to identify patterns, predict trends, and make probabilistic generalizations. Unlike deductive reasoning, the conclusions derived from induction are not guaranteed to be certain.
- Abductive Reasoning: This approach aims at inferring the most likely explanation for a given set of incomplete information and uncertain data. Abductive reasoning equips AI systems with the ability to function effectively in complex, real-world scenarios where decisions are often based on incomplete information or uncertainties.
Problem-Solving
Similar to reasoning but more action-oriented, the problem-solving capability mimics human cognitive processes. It enables AI models or systems to analyze data, detect patterns, break down issues, come up with solutions for challenges, and refine them for the final effective one. Problem-solving involves using techniques to navigate through potential options in order to arrive at the desired result:
- Heuristic Search: Use systematic algorithms to exhaustively explore all possible solutions in order to find the best optimal one for a goal or problem.
- Optimization: Involve adjusting variables to achieve the best solution for a problem under defined constraints.
- Decision Trees: A powerful, intuitive method that visually maps choices and their possible outcomes in a tree-like structure. The decision tree makes it easier to understand and navigate through solutions.
Perception
Perception refers to the capability that enables AI platforms to collect data from different sensors (E.g., cameras, LiDAR, radar, ultrasonic sensors, GPS and Mapping Systems, etc.). The AI systems process information to learn about the environment around them, thereby detecting objects and understanding their features and relationships.
For example, self-driving cars use a combination of sensors (Like cameras) to gather visual data about the surroundings and recognize roads, lanes, and obstacles. Advancement in perception empowers the use of AI in image/facial recognition, object detection, image segmentation, and video analysis.
Language-Processing
This component involves understanding, interpreting, and generating human language. Natural language processing enables AI systems to analyze and process text and speech, breaking down the barrier between human communication and machine understanding. The ability of AI language processing encompasses:
- Language & Sentiment Analysis: Analyze grammatical structures of sentences to understand relationships between words and comprehend the context, meaning, tone, as well as intent (of words, phrases, sentences, and paragraphs).
- Language Generation: Produce contextually relevant text or speech. Generative AI models, for example.
- Machine Translation: Convert text or speech from one language to another without changing the original meaning and context.
- Speech Processing: Convert spoken language into text (speech-to-text, also known as automatic speech recognition or ASR) and generate spoken language from text (text-to-speech, or TTS).
Branches of AI
The whole concept of artificial intelligence encompasses multiple branches or subfields. Each branch plays a unique role in the development and implementation of intelligent systems.
Machine Learning
Within AI, machine learning (ML) is a critical sub-field. Its focus is on the development of algorithms and statistical models that enable machines to learn from input data, perform tasks without being explicitly instructed by humans, and improve performance as well as make future predictions based on past experiences.
The core of machine learning relies on the idea that machines are capable of learning patterns and evolving to make data-driven decisions and predictions. There are three types of machine learning: Supervised learning, unsupervised learning, and reinforcement learning (as mentioned above).
Deep Learning & Neural Networks
Deep learning is a subset of machine learning inspired by the structure and function of the human brain. At its core are artificial neural networks (ANNs), which are designed to process and learn from vast amounts of data. These networks consist of interconnected layers of artificial neurons that mimic human intelligence in recognizing patterns and relationships.
A basic neural network comprises three types of layers: The input layer (which receives raw data), hidden layers (where computations are performed to extract features and identify patterns), and the output layer (which delivers the final result). Deep learning utilizes neural networks with multiple hidden layers, enabling models to automatically learn complex patterns and high-level representations. Neural networks learn from input data by passing it through weighted connections between artificial neurons.
In a layered approach, deep learning models are empowered to excel in extracting intricate features from data, outperforming traditional machine learning techniques while minimizing the need for human intervention. Neural networks, as the backbone of deep learning, empower AI systems to identify patterns, features, and relationships within large datasets.
Robotics
The robotics branch is an interdisciplinary area with artificial intelligence, involving a combination of computer science, mechanical engineering, electrical engineering, and cognitive science in designing, building, and programming robots. Its focus is to integrate intelligent algorithms into robots and give them the ability to perceive and interact with their physical environment, make decisions, and execute tasks autonomously or semi-autonomously.
Natural Language Processing (NLP)
As aforementioned, the NLP branch centers on teaching machines how to understand, interpret, and interact with both spoken and written human language in a meaningful and useful manner.
Fuzzy Logic
This branch deals with non-binary reasoning and decision-making that is approximate rather than exact or fixed. Different from classic logic, which is about true or false values, fuzzy logic allows for nuances of truth. It helps with handling uncertainty and imprecision, which is especially suitable for modeling AI systems in the real world, where complex, imprecise information is inevitable.
Expert Systems
An expert system is a program designed to mimic the thinking and decision-making capabilities of humans. These systems excel at addressing specific problems in specialized domains by using a combination of knowledge and rules, similar to how a human expert approaches such tasks.
Let’s describe how one works in simpler terms. Expert systems function by combining three core components to deliver accurate, rule-based solutions to intricate problems within a specific domain:
- Knowledge Base: Stores domain-specific facts and rules, either manually curated by human experts or derived from data.
- Inference Engine: Processes the knowledge base using logical reasoning mechanisms (e.g., if-then rules) to draw conclusions and provide recommendations.
- User Interface: Provides users with a platform for interaction, allowing them to input queries and receive advice or decisions in response.
A little fun fact here: Expert systems were first pioneered by the Stanford Heuristic Programming Project in the 1960s. One of the earliest and most influential systems, DENDRAL, was introduced in 1965 to assist in chemical analysis. Later, in the 1970s, the development of MYCIN, designed to diagnose bacterial infections and recommend treatments, marked a significant milestone in the history of artificial intelligence. These breakthroughs demonstrated the potential of AI to solve real-world problems and laid the groundwork for modern AI systems.
Computer Vision
The ultimate goal of this AI branch is to enable machines or computers to understand and interpret visual information through videos and digital images. In other words, with AI integration, machines can extract meaningful insights and take actions based on what they see. Computer vision can be categorized into several types/techniques:
- Image Recognition: Focus on identifying objects, patterns, or features within an image.
- Image Processing: Enhance or manipulate images to improve their quality or extract relevant data.
- Object Detection & Recognition: Identify and locate objects in images or videos.
- Image Segmentation: Divide an image into multiple segments or parts to focus on specific regions.
- Optical Character Recognition (OCR): Extract texts from images or scanned documents.
- Facial Recognition: Detect and verify individuals by facial features.
- 3D Vision: Understand depth and spatial arrangement from 2D images or 3D data.
- Motion Analysis: Recognize and analyze movements in videos or real-time streams.
Step by Step from Start to Launch - How to Create AI Software
AI application development is a multi-faceted process that brings together technical knowledge, strategic planning, and iterative development. Similar to other types of software development, you and your developers will go through various phases in order to build an AI app from scratch.
Most development teams or tech companies tend to have their own customized workflows, tools, and methodologies that suit their unique project needs, team dynamics, or organizational goals. But if you are not one of them, then the following section will guide you through the entire development lifecycle, from step to step. So, note down if you must.
Step 1: Ideation & Conceptualization
Oftentimes, successful AI apps should start with a well-defined idea. However, like a raw gem, the preliminary vision for an AI solution must be forged and refined through a multitude of activities to transform it into a valuable concept or further a functional solution. By that, we mean:
- Brainstorm for an Opportunity and Define the Problem: Software is created as a solution to one or multiple issues or difficulties, and your AI apps should have a target. You can begin by pinpointing a problem that your product aims to resolve. For example, automate repetitive routine tasks. Don’t stress out. Your idea does not have to be entirely unique or groundbreaking right from the start. You are free to develop your own concept or draw inspiration from existing proven ideas. Just recycle, adapt, and refine them if necessary to make them impactful in your own way.
- Define Core Features: Outline the basic functionalities and features your app will offer.
- Identify the Target Audience: Next, you must identify whom your AI application will serve. Knowing your target audience is of utmost importance because it will decide your app’s design and features. Are you catering to business owners, individual users, or specialized industries? Make sure you portray your end-users before proceeding further.
- Market Research: Time to analyze competitors and market demands by testing existing solutions in your niche. The insights you find will help you determine your unique value proposition (UVP) and differentiate your app from others.
- Set Success Metrics: You should define goals and performance benchmarks for your future product, such as accuracy, response time, or user satisfaction rates. These should be measurable.
Get ready to proceed to step two.
Step 2: Data Preparation
AI systems are trained on data. Therefore, the process of data collection and preparation is significantly important and capable of making or breaking the entire AI app development endeavor. And it covers multiple key aspects as below:
- Data Collection: Gather data from diverse sources, such as databases, APIs, web scraping, IoT devices, or manual entry. The aim is to collect comprehensive datasets and ensure the data aligns with the problem your AI solution seeks to address.
- Data Cleaning: Process raw data in terms of missing values, duplicates, and inaccuracies. The output is the dataset that is reliable and free from noise capable of skewing model performance.
- Data Transformation: Normalize, encode, and restructure data to derive a structured, standardized, and feature-rich dataset optimized for AI training.
- Feature Engineering: Extract, select, and create relevant attributes from the dataset to enhance predictive power and model accuracy. (Using techniques like dimensionality reduction, interaction term creation, and polynomial expansion).
- Data Labeling: Assign accurate labels for supervised learning tasks using manual or semi-automated tools for unstructured data like images or text.
- Data Splitting: Divide data into separate sets used to train, test, and evaluate the AI model’s performance on unseen data. This ensures that your AI app generates well in real-world scenarios.
- Data Augmentation: For specific types of data, such as images or text, data augmentation can be used to artificially expand the dataset by creating variations through transformations like rotation, scaling, flipping, or noise addition. This technique improves model robustness.
A little note here: Always remember that data is the heart of artificial intelligence. So, data quality should always come first.
Step 3: AI Model Selection & Tech Stack Planning
The brainstorming stage is over. Now, we need you to lay the groundwork for your AI app development journey.
Explore Available AI Algorithms and Models
Based on the findings from the requirement analysis, you need to research the types of AI models and algorithms that align with your objectives. For instance, when you build an app involving image recognition, convolutional neural networks (CNNs) are one of the good choices. Or, if your app’s UVP is on natural language understanding capability, transformer-based models like GPT or BERT may be appropriate.
Don’t overlook this step because it is also important when you consider developing your AI model from scratch or leveraging a pre-trained one. Go back to check your requirements. Pre-built AI models can save you much time and resources, particularly when your app’s use case is well-covered by many existing solutions. Then, you can skip some initial hard work. However, if you demand greater flexibility and accuracy, build your custom model.
Select the Right Technology Stack
The tech stack you choose forms the backbone of your AI product, and it can influence development, deployment, and maintenance processes. You need to consider the following layers:
- Programming Language: Python is the most preferred language for AI development. Other good options are R, Java, and Julia. Choose a programming language based on the skills and experience of your development team.
- Frameworks & Libraries: AI app development relies heavily on frameworks and libraries that provide pre-built tools for training, testing, and deploying models. Consider the common ones like TensorFlow, PyTorch, scikit-learn, SpaCy, and Keras.
- Cloud Services: AWS, Google Cloud, and Azure offer scalable solutions for training and deploying AI models without worrying about resource constraints.
- Databases: MongoDB, PostgreSQL, or Firebase for data storage and retrieval.
- APIs: Tools like FastAPI or Flask for integrating the AI model into the app’s backend.
Remember that the right tech stack depends on the app’s functionality, scale, and computational requirements.
Step 4: Feasibility Study & Requirement Analysis
This step is crucial to ensure a solid foundational base for seamless development. You can consider it as a final check before rolling up your sleeves and getting started.
Feasibility Check (Pre-Development)
It is an evaluation process to fully assess your idea on multiple facets and in order to decide if it is pragmatic and worth pursuing. The ultimate goal is to double-check what you have defined in step 1 with real-world constraints, resources, and objectives.
- Technical Feasibility: Assess if the AI application can be developed and implemented with the currently available technologies, data, and computing resources. It examines the suitability of algorithms and frameworks to address the problem’s complexity and makes sure that the proposed AI model is compatible with your existing technology stack. In terms of technical aspects, this is the chance to check your organization’s AI readiness, which is essential for your journey in the long run.
- Operational Feasibility: Evaluate your organization’s availability of in-house expertise or the need for external resources (outsourcing, if necessary). Do you need more developers or data scientists? Or do you need to have training sections for your internal staff? This is when you have to come up with the answer.
- Economic Feasibility: Check the financial implications of AI development and deployment process. Economic feasibility includes estimating the total cost of your project, aligning it with your allowable budget, and conducting a cost-benefit analysis. Everything is done here to ensure your AI project is financially sustainable and capable of delivering measurable value to stakeholders.
- Legal and Ethical Feasibility: Validate the proposed AI solution’s concept and guarantee its compliance with applicable industry-specific regulations (E.g., GDPR, HIPAA) and ethical standards.
Requirement Analysis (Pre-Development)
In the first step of the entire lifecycle, we have already defined the product vision, idea, and core concept as well as set objectives. Now is the time for us to revisit and review everything again, then refining them to create the finalized roadmap that all consent to. Together with feasibility study, pre-development requirement analysis focuses on guiding your development efforts toward success.
- Stakeholder Input: Translate the stakeholders’ expectations and goals into detailed, actionable requirements.
- Functional Requirements: Re-confirm what you want the app to do. Prioritize the app’s features and functions, which are more feasible and impactful.
- Non-Functional Requirements: Verify performance benchmarks – how you want your app to perform. For example, latency thresholds for AI inference.
- Risk Analysis: Ideation often sparks excitement about possibilities; however, may often overlook risks. That’s why risk analysis and mitigation is an essential pre-development process needed for spotting potential bottlenecks and pitfalls (Such as data bias or insufficiency that could lead to inaccurate AI outputs). In the next section, we will discuss the common challenges in developing AI apps.
Step 5: Model Development & Training
All is set, and this is where your AI application starts to take shape. Let’s begin with the core engine – the AI model. This phase is about building, training, and tuning your model with all the “ingredients” (technologies, frameworks, data, etc.) you have picked and prepared before.
- Building: Establish the base of your AI model by defining its structure and selecting the right architecture. As mentioned earlier, leveraging pre-trained models (E.g., GPT) can save much time and costs; however, building custom models is a must for specialized tasks or niche requirements. The building phase serves as the blueprint for the training phase.
- Training: Teach the model to make sense of data and recognize patterns within it by iteratively adjusting the model’s parameters to refine its accuracy and ability to generate. The prepared dataset is split into a training set for learning, a validation set to fine-tune during training, and a test set for evaluating performance. It is fed into the model in batches.
- Tuning: Optimize the model’s performance by adjusting hyperparameters, such as learning rates, batch sizes, and the number of layers, to strike a balance between underfitting and overfitting. By the end, your AI model is both functional and efficient, ready for integration and real-world use.
Step 6: App Development & AI Integration
As its name suggests, this is when your AI-powered application takes tangible form. In step 6, your focus is on developing the necessary software infrastructure and embedding your trained AI model into it to create a fully functional application. The goal is to guarantee that the AI capabilities seamlessly integrate with the overall app architecture while ensuring performance and security. Hence, this step requires the collaboration of developers, AI engineers, and UI/UX in order to materialize the product from a vision to life.
- Backend Development: As the backbone of an application, the backend is responsible for managing data flow between the AI model, user inputs, and the app’s database. The process focuses on building the app’s server-side logic to handle requests and responses, powering the AI app. The trained AI model is typically wrapped as a service using tools like Flask, FastAPI, or TensorFlow Serving to expose it as an API endpoint.
- Frontend Development: A strong emphasis is placed on user interface (UI) and user experience (UX) – to build an intuitive design where the end-users can interact intuitively and seamlessly with your AI application.
- AI Integration: Once the frontend and backend are done and work in harmony, the AI integration begins. The AI model is connected to the backend via APIs or libraries, enabling real-time data exchange and quick processing of user inputs. Latency optimization is critical here. Techniques like caching, optimized model serving (e.g., ONNX, TensorRT), and hardware acceleration (GPUs or TPUs) are employed for faster inference and seamless performance.
Step 7: Testing
Testing is a critical phase in any software development lifecycle (SDLC) to ensure rolling out a success. But it goes beyond traditional testing. When you develop AI software, additional validation is needed to ensure not only the accuracy and robustness of the application but also fairness and compliance with legal and ethical standards related to AI technology.
- AI Model Testing: Validate the model’s performance, accuracy, and consistency across various datasets using techniques like cross-validation, A/B testing, and confusion matrix analysis. To verify the effectiveness, testing with edge cases, adversarial inputs, and noisy data helps evaluate your model’s resilience and generative ability.
- Bias & Fairness Testing: Check and ensure that the AI model does not produce biased or discriminatory results – which can undermine trust and ethical standards. Methods such as demographic parity, equalized odds, and fairness-aware algorithms help detect bias, while strategies like dataset balancing or bias correction ensure fairer predictions.
- Unit Testing: Verify individual components, such as APIs, data pipelines, and preprocessing scripts, thereby ensuring that they function correctly and independently before integration into the full system.
- System Testing: Check if all components (Including frontend, backend, and AI model) they work well together and if the entire app functions as a unified system.
- Security Testing: Ensure compliance with industry-specific regulations while safeguarding sensitive data. It includes encryption validation, secure API access, and penetration testing, addressing AI-specific risks like data poisoning or model attacks.
Step 8: Deployment, Feedback Collection, & Maintenance
In this final phase, the complete AI-driven application is deployed to a production environment. It is accessible, scalable, and ready for real-world use. Once live, feedback collection must be conducted to gather genuine insights from real users. Your team also needs to monitor system performance to identify areas for improvement. The findings will be used to retrain the AI model, fix issues, and enhance the app’s functionality.
Your job here is not done yet. Regular updates and patches must be provided to ensure your AI app remains secure, accurate, and efficient over time. Additionally, you and your team can sit down to discuss and explore new use cases or ideas to work on extra new functions for the application.
That is a decent development cycle for an AI application. Mark that there is no one-size-fits-all format for all projects. Yours can be very different from others, and how you build an AI app will also be distinct from how others do it as well.
Frequently Asked Questions
Should I Outsource AI App Development to a Third-party Company?
The answer is, why not? Outsourcing AI development can be a good choice if your team is short on resources or if your project requires fast delivery or has highly specific requirements. Outsourcing can save costs. Partnering with an experienced third-party company can bring forth lots of breakthrough benefits, and they surely can benefit your project as well. You can consider outsourcing a part or the entire project. It’s all up to you. So, you should think about it.
How Can I Measure or Estimate the AI App Development Cost?
Is AI app development expensive? Yes, it is. However, the true point is at which level. The overall development cost fluctuates depending on various factors. Typical ones include scope, complexity, and functionality. The development team can stick to them in order to decide how much they want to invest in building an AI-powered application.
Where Can I Start Outsourcing AI App Development?
Find a reliable partner – Orient Software.
Who can make a better choice than us? We are a software development outsourcing company based in Vietnam. With a proven track record of over 100 successful projects and nearly 20 years of experience, Orient Software has been providing our suite of services (Custom software development, AI development services and solutions, staff augmentation, etc.) and delivering value to our esteemed clients. And we help you succeed like what we always do. All you need to do is contact us for a free consultation with our experts and a free cost estimate. Within three business days only, our team will get back to you for a meeting. Hesitate no more. Drop us a line and get started with your AI adventure.