How Much Does a Chatbot Cost in 2024? (Chatbot Pricing)
Thinking of getting your own chatbot? With all the hype around AI, it can be tempting to jump on the bandwagon. But between licensing fees, hosting costs, and development expenses, chatbots don't always come cheap.
And to make matters worse, many companies aren’t exactly upfront about their chatbot’s pricing.
Lucky for you, this article breaks down chatbot pricing in 2024 so you can make an informed decision before taking the plunge — and maybe even choose a more cost-effective option than starting from scratch!
We’ll cover:
How can you build a chatbot?
Chatbot pricing comparison table
The best platforms to build your bot
The best FREE platforms
Where do I find a chatbot developer?
What can these bots do?
How do chatbots actually work?
FAQs
How can you build a chatbot?
Use a platform like Lindy!
There are many free and paid options out there. But you can’t go wrong with building a chatbot using Lindy, the premier AI platform.
Instead of having to start from scratch, you can have a completely customized chatbot by signing up to the platform (you get 200 free credits) and following a simple process that takes a few minutes.
Plus, you’ll find many ready-made templates in the marketplace, so getting started may only take about 30 seconds!
Going the full-on design route
Building a chatbot from scratch gives you the most control over its features and functionality.
However, unless you have those development skills in-house, be ready for a major investment in developer time. Expect to pay hourly rates, which typically range from $50-$200+ per hour, depending on the developer's experience.
Also, you’ll have to consider these potential difficulties and chatbot pricing issues.
Type of chatbot: Simple rule-based chatbots are cheaper, while AI-powered, context-aware chatbots are more expensive due to their complexity.
Development platform: Using platforms like Chatfuel or ManyChat may be less costly, whereas custom development or using enterprise-level platforms like IBM Watson can be more expensive.
Features and integration: Additional features like voice recognition, multilingual support, or integration with existing systems can increase the cost.
Maintenance and updates: Ongoing costs for maintenance, updates, and training the chatbot with new data are also important to consider.
On average, costs can range from a few hundred dollars for a basic chatbot to tens or even hundreds of thousands for a complex, highly integrated chatbot system.
Outsourcing galore!
If you need custom functionality or a highly polished chatbot solution, a freelance developer or specialized agency might be the answer.
Keep in mind that rates will vary, so it's very important to get quotes and carefully compare portfolios and expertise. Make sure to factor in communication time and project management aspects into your budget.
Chatbot pricing comparison table
Chatbot pricing can vary quite a bit depending on the type of chatbot and platform you choose.
Let's break it down:
Type
Cost range
Pros
Cons
Best For
Ongoing costs
Pre-built Bots
Free to a few hundred dollars/month
Low cost, quick setup
Limited control over personality, limited integrations
Businesses of all sizes
Updates often included in subscription
Custom Chatbots
$5,000 to $30,000 upfront
Highly tailored experience, advanced features
Higher costs, longer time to build
Complex conversations and personalization needs
Maintenance, hosting, AI training, updates
Hiring a Developer
Variable (project fees or hourly rates)
Specialized skills, tailored solutions
Communication overhead, potential timeline delays
Need for specialized skills, tailored solutions
Depends on the nature of the project and upkeep
The best chatbot building platforms
With so many chatbot platforms available, choosing the right one for your needs can be tricky.
Lindy prioritizes user-friendliness and collaborative power, with templates up the wazoo and ease of use at the forefront.
Pros: Easy-to-use interface, affordable entry-level plans, excellent range of features, and the revolutionary ability to have chatbots (“Lindies”) that can perform different tasks and communicate with one another for extra “oomph.”
Cons: The only con is that you can’t get into Lindy’s code, so it may not be your cup of tea if you’re looking to start from scratch.
Best for: Individuals and businesses with any chatbot requirements who value ease of use above all, as Lindy doesn’t necessitate any prior coding knowledge.
Manychat simplifies connecting your chatbot to social media platforms, especially Facebook Messenger, making it a strong tool for marketing and engagement.
Pros: Focus on social media integration, easy to use, simplifies lead generation through social channels.
Cons: Less ideal for strictly internal use cases or complex customer service needs.
Best for: Businesses prioritizing customer engagement and lead generation through social media channels.
Intro: Chatfuel offers a beginner-friendly way to build a basic chatbot with its drag-and-drop interface and free trial.
Pros: User-friendly, free plan for simple chatbots, good for getting started.
Cons: Limited features compared to other platforms, less suitable for complex needs.
Best for: Experimenting with chatbots or building simple bots with basic features.
The best free chatbot building platforms
Truly free chatbot platforms that offer both decent functionality and sustainable business models are incredibly rare, or even nonexistent. Most platforms that advertise as "free" either have severe limitations or transition their free plans into paid tiers over time.
That being said, both of these options have free elements. Botpress is open-source, and Rasa has a free, limited mode for non-production uses.
Rasa gives developers complete control over their chatbot's functionality and natural language understanding capabilities.
Pros: Highly customizable, supports complex chatbots and integrations, powerful AI features.
Cons: Requires significant development experience, best suited for technically proficient teams.
Best for: Developers seeking maximum flexibility, projects with unique AI requirements, or where total control is paramount.
Where to find a chatbot developer (and how it affects chatbot pricing)
Here's a breakdown of where to look and the typical costs involved:
Freelance marketplaces galore
Platforms: Sites like Upwork, Fiverr, and Toptal offer a wide range of freelance developers.
Costs:
Hourly rates: Expect a wide range, typically from $25 — $150+ per hour. Average rates often fall between $50 — $80 per hour depending on experience and complexity.
Project-based: Smaller chatbot projects might start around $500 — $1,500, while more complex ones can easily reach $5,000 — $10,000+.
Specialized agencies
Agencies focusing on chatbots offer in-depth expertise, but that will drive the overall chatbot pricing up.
Costs:
Hourly rates: Agency developers often charge higher hourly rates, frequently in the $100 - $200+ per hour range.
Project-based: Projects typically start at several thousand dollars, with complex chatbots potentially costing $25,000 — $50,000 or more.
Things to keep in mind about costs
Experience: Top-tier developers command higher rates than those new to chatbot development.
Complexity: Extensive chatbot features, custom integrations, and advanced AI drive up costs.
Location: Developers in high-cost-of-living areas charge more than those in lower-cost regions.
Timeframe: Rush projects will cost you more money.
What can chatbots do?
The better question is, what can’t they do? Let’s take a look at some of the most common use cases:
Many companies use chatbots to automate their customer service. Chatbots can handle questions and requests 24/7 without needing human agents.
Chatbots can be virtual assistants. They help out users with boring jobs like scheduling appointments, setting reminders, controlling smart home devices, and more.
Some chatbots are designed primarily to share information with users in an engaging way. News organizations, for example, use chatbots to deliver headlines, summaries, and full news articles. Chatbots can also be used to share content like blog posts, videos, podcasts, and social media updates.
For many companies, chatbots are a way to boost customer engagement and build brand loyalty. When customers have a positive experience with a chatbot, it leaves them with a good impression of the brand. Chatbots also give companies another channel to connect with customers and provide value.
How do chatbots actually work?
It may look like magic, but it isn’t.
Here’s how chatbots work:
Chatbots are able to understand what you say to them through natural language processing (NLP). They analyze your words to determine your intent and the meaning behind what you're saying. The bot compares your input to examples in its training data to interpret your meaning and identify the best response.
Once the chatbot understands your question or request, it needs to provide an accurate response. It does this by tapping into its knowledge base, which contains information about the topics it was designed to discuss. The knowledge comes from datasets, documents, and other sources that were used to train the AI.
After interpreting your message and finding the relevant information, the chatbot must formulate a response. It considers context from your conversation so far and its programmed personality to generate an appropriate response. It then speaks the response, displaying the text in the conversation interface.
Chatbots get smarter over time through machine learning. As people interact with the bots, they provide more data to help improve natural language understanding, optimize knowledge bases, and produce increasingly accurate responses. The chatbot also adapts its knowledge and responses based on real-world events to stay up to date.
Many chatbots connect to backend systems that can take action based on user requests or provide necessary data and functionality. For example, a customer service chatbot may connect to a company's CRM to look up customer information or place orders on their behalf. The integration with backend systems allows chatbots to go beyond basic Q&A and deliver more complex digital experiences.
Frequently asked questions
How much does a chatbot cost to develop?
The cost to build a chatbot can range from free to $100,000 or more, depending on its complexity. If you want to build a basic chatbot yourself using a free platform, the only cost is your time. However, hiring a developer to build a custom chatbot for your business typically starts around $30,000 to $50,000 for a simple bot and up to $100,000 or more for an advanced AI-based bot.
How long does it take to build a chatbot?
The time it takes to develop a chatbot depends on its complexity. A simple chatbot with a few basic conversations can take a few days to set up yourself using a free platform. An enterprise-level chatbot with advanced AI and natural language capabilities can take 3-6 months or longer to develop with a team of experts. If you use a no-code platform like Lindy, it takes all of 30 seconds.
Will chatbots replace humans?
While chatbots are getting more sophisticated, human agents still have some advantages like emotional intelligence, complex reasoning, and creative thinking. But chatbots are getting there, and they’re already starting to eclipse our capabilities. So far, it looks like a hybrid model is what works best.
Summing up
Chatbots can do some pretty amazing things these days, and the technology behind them keeps getting more advanced.
But like most tech, chatbot pricing can vary wildly. Depending on your needs and budget, you've got options — from low-cost platforms like Lindy that offer all the benefits, to the DIY route for the brave, the bold, and those with deep pockets.
The way forward is up to you!
Next steps
Lindy isn't your average chatbot. It's designed to handle a wide range of tasks and answer those questions that keep you up at night.
Here's what makes Lindy stand out:
A helping hand, always ready: Imagine having a virtual assistant that you can turn to anytime. Need a quick fact at 3 AM? A summary of a complex document? Lindy's always available and ready to provide the information you need.
Works with your workflow: Lindy seamlessly integrates with over 3,000 apps. That means you can ask it to manage your calendar, summarize documents, or tackle other tasks without ever leaving your usual tools.
Learns as it goes: Lindy gets better the more you use it. It adapts to your work style and preferences, offering increasingly tailored and insightful answers over time.
The assistant you always wanted: Whether you want complex analysis, quick answers, or even a touch of friendly advice, Lindy can be customized to become your ideal helper.
Conversational and understanding: Lindy's advanced AI understands how you speak naturally. No need for stiff, robotic commands — just chat like you would with a colleague.
Answers across borders: Lindy breaks down language barriers, providing responses in over 50 languages. Get the information you need, no matter how you ask for it.
From the mundane to the mind-boggling: Lindy draws on a vast knowledge base to answer everything from simple trivia to complex questions.
