How Much Does It Cost to Integrate AI into Blockchain?
The basic cost to integrate AI into Blockchain is $20,000 To $40,000. As per location, company size, and complexity level, it can be $60,000 To $100,000.
Artificial intelligence (AI) is one of the major driving forces of innovations loved by entrepreneurs and users alike. AI refers to the simulation of human intelligence in machines programmed to mimic cognitive functions such as learning, problem-solving, and decision-making. It encompasses a wide range of techniques, including machine learning, deep learning, natural language processing, and more.
Blockchain technology is another force to be reckoned with. It is a decentralized and distributed ledger technology that securely records transactions across a network of computers. Each transaction is stored in a “block” cryptographically linked to previous blocks, forming a chain of blocks, hence the term blockchain.
Blockchain is used in many areas, such as Pharmaceuticals, Health care, Banking, Agriculture, etc. When AI and blockchain are integrated, they can complement each other’s strengths and address various challenges in areas such as data security, privacy, transparency, and decentralized decision-making. In supply chain management, blockchain enables transparent and traceable tracking of goods from manufacturer to consumer, reducing fraud and counterfeiting.
The cost will be calculated using several factors, such as Company Location, Size, Complexity, and many others. This blog provides all the cost information, Business benefits, etc.
Table of Contents
- Cost to integrate AI into Blockchain as per location
- Cost to integrate AI into Blockchain as per Company Size.
- Cost to integrate AI into Blockchain as per Complexity Level.
- Business Benefits of Merging AI in Blockchain.
- Conclusion
Cost to integrate AI into Blockchain as per location
Location is one of the major factors for costing. The calculation depends on the company’s location. The hourly rate of the developers varies from place to place and region to region. Below is the developer’s hourly cost according to different regions.
- United States (US) Hourly Cost of the Developers — $140/hr
- Eastern Europe Hourly Cost of the Developers — $80/hr
- Australia Hourly Cost of the Developers — $90/hr
- South Asia Hourly Cost of the Developers — $25/hr
- India Hourly Cost of the Developers — $45/hr
The developers’ hourly rates are approximate; they may vary more or less according to the integration service. Let us discuss this briefly with the example.
In the United States, the developer’s hourly rate is higher than in other regions because the lifestyle, expenses, and currency are higher in that region.
Similarly, the hourly rate in South Asia is less than that of other regions, which might be because the currency, expenses, and lifestyle are lower in South Asia.
Cost to integrate AI into Blockchain as per Company Size
The company size is also one of the major cost factors. Basically, there are three types of company sizes: Small-Size, Medium-Size, and Large-Size. The table below explains the cost of the integration.
Small-Size Company
Manpower: 50–200
Approx Cost: $20,000 to $ 45,000
The cost of developing or integrating the previous blockchain depends on the company size. In a small company, you may not get quality work or less effort to complete your work on time. You might not get the service as per your requirements.
Medium-Size Company
Manpower: 200–500
Approx Cost: $50,000 to $1,00,000
In a medium-sized company, you will get advanced features at an average cost. For less cost, you may get advanced features, and the developers are totally dedicated to providing your work in your required time.
Large-Size Company
Manpower: 1000+
Approx Cost: $100,000 to $1,500,000
A large company will provide highly advanced features or full-quality work by certified experts at the required time, but the cost of such companies may be higher than that of small and medium-sized companies.
Cost to integrate AI into Blockchain as per Complexity Level
The calculation of the cost for integration also varies as per the complexity level. There are three types of Complexity Levels: Low-Level complexity, Medium-Level Complexity, and Large-Level Complexity. The table below provides you with some short information.
- Low-Level Complexity — $20,000 To $40,000
- Medium-Level Complexity — $40,000-$60,000
- High-Level Complexity — $60,000 To $100,000
Business Benefits of Integrating AI in Blockchain
Blockchain technology is being used in many areas, such as pharmaceuticals, health care, banking, agriculture, etc. Since its enormous and varied uses, this field is the most trending and emerging field. If AI is integrated into Blockchain, then the benefits will be great.
AI for Fraud Detection
AI excels at identifying patterns and anomalies within vast datasets. It empowers businesses to leverage AI algorithms for fraud detection, reducing the risk associated with transactions and applications.
AI for User Experience
AI personalizes user experiences by analyzing user behavior and preferences. AI creates customized experiences for each user based on their unique preferences and behaviors.
Blockchain for Data Accuracy
Blockchain can verify the origin and provenance of data, ensuring it is authentic and reliable. Blockchain’s set ledger ensures data remains tamper-proof, providing a reliable source for training and validating AI models.
Blockchain for Data Security
This empowers businesses to deliver personalized experiences with the utmost security and privacy. Customers can be assured that the data is secured while benefiting from personalization’s advantages.
AI for Operational Efficiency
AI translates to faster transactions and reduced costs for businesses and consumers, who understand data better, spot problems before they happen, and ensure resources are used best.
Blockchain for Frictionless Payments
Blockchain and cryptocurrencies are introducing new ways to think about value exchange without traditional financial intermediaries. This could lead to frictionless payment methods that are also more accessible globally.
Blockchain for Data Auditability
It enhances transaction approval and increases the ability of all users to participate in the network. Thus, the audit process does not need to be carried out at the end of the period; audit activities can be done at any time.
AI-powered Pricing for Smart Contracts
AI can help make smart contracts smarter by utilizing the massive volumes of data generated by smart contracts and the blockchain ecosystem to access relevant insights.
Monetization of Data
Individuals can control and potentially monetize their data directly through data centers. This empowers the user to decide how to use the data and generate income.
AI Optimizes Blockchain Algorithms
AI algorithms can analyze this data to identify patterns, optimize inventory management, predict demand fluctuations, and enhance logistics operations. This translates to a more sustainable future for blockchain applications, addressing concerns about the environmental impact of traditional blockchain mining methods.
Benefits of AI Integration in Blockchain
There are multiple industries where you can generate income by generating AI in Blockchain. Some of them are mentioned below:-
Healthcare
The combination of Blockchain and AI in healthcare ensures data security against cyber threats, decentralizes data access and grants individuals ownership of their health data. AI analyzes individual patient data to develop personalized treatment plans and predict potential health risks.
Finance
AI analyzes large amounts of financial data to identify investment opportunities and better manage portfolios. Meanwhile, Blockchain provides a secure platform for asset ownership and trading.
Supply Chain
Streamlined logistics facilitated by AI-powered analysis reduce delivery times and transportation costs. Blockchain creates a shared ledger, providing all stakeholders with real-time visibility into the activity of products throughout the supply chain. AI analyzes this data to optimize logistics, identify potential disruptions, and predict bottlenecks.
Decentralized Autonomous Organizations (DAOs)
AI analyzes proposals and predicts outcomes, ensuring fair decision-making without centralized control. Blockchain technology fortifies the security and durability of DAO operations.
AI can further analyze data patterns to identify and prevent malicious activity within the DAO, safeguarding the integrity of the organization’s decision-making processes.
Conclusion
AI integration into blockchain will cost approximately $40,000 to $300,000 or more. As discussed above, it may also vary depending on different factors. Integrating AI in blockchain for your business will be a one-time investment. In the future, AI technology will become the peak of the business.
AI integration in blockchain will be the best idea for generating high income and revenue. If you’re looking to stay ahead of the curve, it’s crucial to understand how AI and Blockchain can empower your business.
The synergy between Blockchain and AI enables more secure data management, streamlined processes, and data-driven insights, from healthcare to finance and supply chain management to smart cities.
However, successful implementation requires collaboration, investment in research and development, and a regulatory framework that fosters innovation while safeguarding privacy and security.
