Contents
- What is AI development?
- Does AI development pay off? The true return on artificial intelligence investment
- Where is AI making the biggest impact?
- The shift toward action-oriented AI
- Proven high-impact use cases across industries
- 3 questions to assess your AI readiness
- Navigating AI development risks
- Solid AI governance as your clear-cut to risk-free, responsible AI
- Stages of the AI development lifecycle
- How to decrease AI development cost? Bonus cheat sheet from our AI engineers
- Summary
- FAQ
Key highlights
- AI development has moved to the stage where it shows measurable results across industries.
- AI can meet your transformational expectations if your data, infrastructure, and workforce are ready.
- Machine learning algorithms work better and safer with an AI governance framework in place.
Artificial intelligence is becoming more powerful and omnipresent day by day. 78% of companies already use AI in at least one business function to minimize costs, speed up processes, reduce complexity, transform customer engagement, fuel innovation, and unlock new revenue streams. However, only 1% of these organizations describe their AI rollouts as “mature.”
How to do AI development right on the first try and avoid the AI adoption plateau? This guide summarizes a decade of our hands-on AI expertise, as we were providing our clients with scalable, value-focused AI solutions long before LLMs hit the headlines.
Get the answers that spark action, and move from small-scale pilots to deploying AI at scale in a way that is sustainable, secure, and aligned with your business goals.
What is AI development?
AI development is the process of creating intelligent systems that can mimic human cognitive skills such as learning, comprehension, reasoning, problem solving, decision making, and creativity. Underpinned by capabilities like natural language processing, image and speech recognition, computer vision, machine learning, deep learning, and generative AI, these systems can create various types of content, analyze data, identify patterns, and make predictions faster than humanly possible.
Does AI development pay off? The true return on artificial intelligence investment
While AI has generated years of hype and expectations of high ROI, there was little evidence to prove this promise. In 2025, however, the technology’s potential is backed by hard data.
Yet, unlocking this value is only possible with a thoughtful approach, which starts with identifying relevant business use cases. That’s why, before rushing into AI development, companies often choose to invest in AI adoption workshops — intensive exploratory and planning activities which set the right project trajectory from day one.
Where is AI making the biggest impact?
Recent developments in AI empower companies to accelerate and enhance their front, middle, and back office processes by automating routine workflows, enriching them with personalization capabilities, and eliminating human errors.
The shift toward action-oriented AI
In 2023-2024, a new trend started gaining traction — large action models (LAM), better known as AI agents. This marked a fundamental shift from generative to actionable AI, where AI algorithms moved beyond providing output to performing tasks on the user’s behalf.
However, so far, the potential of the technology is still largely untapped — only 11% of companies involved in the development of AI move from piloting to deploying AI agents.
Take the legal world. Our client, a global law firm, wanted to implement AI to analyze stacks of M&A data and extract key points in one click. A multimodal AI agent now interprets legal language, tables, and images, saving the client 47,000 hours of manual work annually.
On the retail side, Amazon is setting the standard, simplifying and streamlining the entire shopping journey. Its AI agents power highly personalized recommendations, automate fulfillment workflows, and even complete purchases across third-party sites via a “buy for me” feature.
Meanwhile, in the travel sector, one of our clients overhauled their booking app by replacing a rule-based chatbot with a proactive virtual assistant that can handle all bookings and payments and track expenses on the user’s behalf. This upgrade spiked the annual retention rate from 28% to 41%.
Predictive equipment maintenance is another area where AI agents drive significant efficiency gains. Deploying them to orchestrate machinery maintenance for an electronics manufacturer led to a 20% drop in maintenance costs and a 15% boost in production uptime.
Proven high-impact use cases across industries
If you can imagine it, AI can do it. Moreover, chances are someone is already leveraging it. But with all the hype, many use cases can feel more like marketing fiction than practical solutions to real business needs.
Indeed, AI promises are huge on a full-blown Midas scale, with everything it touches supposed to turn to gold, or rather, a fully autonomous workflow. We’ve cut through the noise and gathered real-world examples of our clients’ projects across industries and functions.
This list isn’t final, as there’s more to AI than meets the eye, and valid use cases keep multiplying, but it offers surefire ways to nail AI development right here, right now.
Ecommerce
IBM survey pinpoints that AI’s contribution to revenue growth in retail will more than double by 2027. The technology has permeated all ecommerce functions to some degree:
Tried and true gen AI use cases in ecommerce include:
- Hyper-personalization of every step of the customer journey, from custom advertising and recommendations to unique loyalty programs
- Virtual try-ons with computer vision and augmented reality under their hood
- Human-like intelligent chatbots for accurate 24/7 customer support
- Market research with AI combing through the vast amounts of customer data, feedback on social media platforms, competitors’ moves, and other valuable data
- ML-powered demand forecasting backed by the EPoS and transactional data for 90%+ accurate predictions
- Ad spend optimization by matching best-performing offerings to relevant consumers
- Supply chain and inventory analytics with AI evaluating suppliers, optimizing logistics routes, improving last-mile delivery, and running what-if scenarios to foresee demand fluctuations
- Gen AI-driven pricing based on customers’ behavior, market trends, seasonality, inflation rates, and other variables
- Enhanced fraud detection thanks to simulating fraudulent activities and training AI algorithms to detect and counteract them
Technology
Gen AI-powered automation is the primary driver of changes in how software development companies deliver their services. Projects that earlier called for niche expertise can now be done automatically and at a way lower cost. Let’s take COBOL as an example. Our experience proves that by using generative AI to translate legacy COBOL code into Java, you can cut software modernization costs by 70%.
The range of time-tested AI usage in software development spans:
- Writing robust boilerplate code thanks to pattern recognition, contextual awareness, and code suggestion.
- Explaining legacy code
- Code refactoring and modernization
- Code translation aligned with the project’s specific coding style, patterns, and software libraries
- Early-stage bug detection when fixing anomalies costs next to nothing and doesn’t affect your project budget
- Testing where AI takes over test planning, synthesizing test data, and generating and executing test cases
- Preparing comprehensive documentation and keeping it updated
Logistics
The volatility of trade controls and reciprocal tariffs, with consequent supply chain disruptions and ambiguous tax regulations, introduces an uncertain business environment as a new normal.
Our AI center of excellence is developing an AI-driven strategic response to minimize the impact of tariff-associated risks. Here’re two solutions we’ve already tried with our clients:
- ML-driven bill of materials analyzer can predict potential Harmonized Tariff Schedule (HTS) classifications, flag high-duty components, and recommend duty-efficient alternatives.
- Fine-tuned LLMs can read CAD files and PDF spec sheets and suggest product specification optimizations to help classify items under lower-rate tariff categories. Early adopters of this approach report 3–5 % duty savings.
The implications of AI in the logistics industry aren’t limited to the tariffs’ context. For instance, generative and conversational AI successfully cover the high-impact operational areas:
- Inventory management and demand planning, when ML-based predictive analytics enables highly accurate stock replenishment
- Real-time route optimization depending on the weather conditions, traffic density, and road restrictions
- Customer service with AI chatbots handling routine customer queries
- Finance and risk management, where AI monitors regulatory changes and factors in operational cost trends, such as rising fuel prices and increasing inflation, to suggest relevant budget adjustments
Our client, an Italian transportation company, used conversational AI within their mobile taxi booking app to provide smart, human-like customer support with 97% accuracy of intent recognition. This approach empowered them to resolve 78% of support requests without human intervention and gain a 4.8-star app rating.
Automotive
75% of automotive manufacturers already use gen AI at all stages of the R&D process and report up to a 30% productivity gain.
CarMax, the largest used car retailer in the United States, demonstrates another use case. Their gen AI tool scans and summarizes thousands of real customer reviews and updates the related section on the vehicle’s page, enabling buyers to instantly grasp the pros and cons of a particular car highlighted by other drivers.
Finance
Banks, insurance agencies, accounting and tax firms, and mortgage companies benefit from adopting conversational AI tools for front, core, and back-office operations, increasing staff productivity by up to 35% while reducing cost-to-serve by 20%.
For instance, high-impact conversational AI use cases in banking include:
- Customer onboarding with AI taking care of ID validation checks and submitting the customers’ documents
- Customer support with 60% of trivial inquiries, such as activating a card, resetting PINs or account passwords, and updating account information, being handled by AI bots
- Personalized virtual financial advisors providing tailored insights after analyzing customer data, their saving and expense patterns
- Assistance to C-level executives to save them from spending ⅓ of their time on chasing down metrics from the management information systems team
- Employee onboarding and training with a single AI chatbot trained on the company’s data instead of slogging through the corporate wiki
Manufacturing
Artificial intelligence and machine learning are the driving forces of Industry 4.0, and the speed of their adoption is accelerating by the day.
Common AI applications in manufacturing cover:
- Digital twins allowing for optimizing production lines, supply chains, and whole-factory workflows without disrupting physical assets
- Predictive machinery maintenance backed with IoT sensor data prevents failures before they occur, eliminating unexpected downtime
- Advanced quality control systems powered by computer vision spot product defects in real time
- Mass product customization becoming scalable, with AI adjusting product designs on the fly based on customer feedback
- Demand forecasting relying on augmented analytics helps maintain optimal stock levels and reduce carrying costs
Healthcare
Gen AI-driven solutions, from text-based chatbots to voice-enabled interfaces, reshape user experience for both patients and healthcare providers by making medical care more affordable while driving operational cost-efficiency. For instance, AI-based claims processing speeds up resolution time by 40%, creating a better patient experience. At the same time, delegating this and other administrative tasks to AI saves up to 25% of total healthcare spending.
Key use cases for AI in healthcare including conversational tools are:
- Proactive appointment scheduling
- Medical triaging to take symptoms gathering and identifying diagnoses off the shoulders of over-loaded primary care doctors
- Clinical decision support, where even general-purpose LLMs can cut hours of preparing the clinical recommendations down to minutes
- Remote patient monitoring
- Post-visit patient support and engagement, for instance, outlining care summaries, estimating out-of-the-pocket costs for patients, and walking them through the insurance coverage and billing process
- Medication management with an AI assistant serving as a personalized medication encyclopedia
- Reimbursement, where AI prioritizes claims, submits them to insurance providers, monitors payments from providers, and offers guidance on bills to patients
- Clerical operations, like churning out post-visit summaries, organizing clinical notes, and creating personalized learning plans for clinicians
- Clinical trials with AI handling a range of tasks, from candidate screening to checking for missing data points in incoming clinical trial data and lab results
- Back-office work and administrative functions, such as finance, staffing, and legal activities
Oil & gas
The margin for error in the oil and gas industry is razor-thin. A delayed maintenance check, a misjudged drill path, or a supply chain hiccup can lead to millions lost. In such a high-stakes environment, AI adoption is your chance to stay on top of your the game.
The range of AI use cases in the oil and gas:
- Reservoir exploration with AI augmenting human fieldwork by interpreting seismic images and creating geo-models of hydrocarbon reservoirs in hours instead of months
- Drilling optimization, when ML algorithms and neural networks are used to prevent drill-bit failures
- Automated E&P equipment scanning with computer vision at its core to schedule maintenance on time and decrease operational expenses
- Field workers’ support with AI assistants proves to be more efficient than human-staffed call centers
- Storage facility inspections performed by robots with OGI cameras and summarized by gen AI let operators take remedial actions without entering potentially dangerous areas
- Route planning and adjustments can be done on the go without increasing the planned transit time
- Refinery optimization with AI systems monitoring distillation, catalytic cracking, and hydrogenation to spot safety hazards
- Quality control done by AI models ensures that fuels and petrochemicals meet key standards, such as ISO, ASTM, and API
- Accelerated and cheaper product R&D thanks to AI-based simulations
- Supply chain automation, as ML algorithms take over configuring distribution networks, monitoring inventory levels at each facility, and optimizing transportation routes
3 questions to assess your AI readiness
Everyone is talking AI, a medley of use cases prove its efficiency… And here comes the ‘but’: is your data, infrastructure, and employees ready for artificial intelligence?
Business owners tend to feel optimistic hearing that AI can be implemented within a few months to a year. However, the reality shows there are quite a lot of things to be taken care of prior to the development of AI, and they take time too.
47% of C-suite respondents believe that overcoming AI adoption barriers, such as data concerns, trust issues, risk management, governance, regulatory compliance, and workforce training, can be achieved within 12+ months. Meanwhile, Deloitte’s AI research indicates a 1–2 year timeline as more realistic, with some challenges extending up to five years.
Is your data AI-ready?
Lack of easy access to data from different systems, incorrect and missing data, bias, and other issues increase the AI development and maintenance costs, not to mention affecting the solution’s quality.
Successful AI adoption starts with improving your data foundation.
Since data is the difference maker, 75% of companies have already increased their investments in organizing, streamlining, and protecting their data. How can you strengthen your data lifecycle management to keep up with them? We’ve listed data-related challenges standing in the way of AI adoption and shared practical tips for addressing them.
Inadequate data quality
Clean and validate data regularly to spot and remove duplicates and incomplete records before they affect the accuracy of machine learning models. The frequency depends on the data type and its importance for decision-making:
- High-velocity data, like financial transactions, should be validated daily.
- Operational business data, such as supply chain and inventory records, can be checked weekly.
- Customer data, like CRM records and customer profiles, can be reviewed for inaccuracies once a month.
Use resources like the Great Expectations data quality framework, dbt tests, or the Deequ library to automate and schedule validation checks for each type of your data.
Lack of data
If you don’t have enough proprietary data to fine-tune machine learning models or cannot use real data because of privacy concerns, your limited dataset may fail to reflect the reality and result in an algorithmic bias.
Discriminatory outcomes lead to missed business opportunities and severe legal and regulatory penalties, as it was with UnitedHealth Group. The health insurance provider used a faulty AI tool for post-acute care predictions that denied elderly patients coverage for extended care.
To combat these risks:
- Augment your existing data with its modified versions if your dataset lacks diversity. Say, you are training a customer sentiment classifier on a limited set of customer reviews. You can diversify the dataset by replacing some words in reviews with synonyms. Changing ‘fast shipping’ to ‘quick delivery’ doesn’t compromise the original review, but is essential for training a highly accurate AI classifier.
- Generate synthetic data that mimics the characteristics of the existing data without jeopardizing its privacy. This is a silver bullet for accelerating medtech R&D efforts without exposing patients’ information.
Generating synthetic data is also a go-to option for simulating rare events. For example, a traffic management company may not have enough data on accidents to create a solid AI-driven accident prediction and prevention system. Synthetic data empowers them to immediately get realistic scenarios in any weather and lighting conditions for different road types, traffic density, and driver behavior.
- Use bias-detection tools like AI Fairness 360, Fairlearn Aequitas, etc., to ensure you have a diverse, equitable dataset. In cases when there’s no quick way to get more information on the underrepresented group, you can oversample minority classes to balance the dataset.
Data privacy
With the EU Artificial Intelligence Act going into effect in 2026 and the shifting status of AI-specific legislation in the US (Colorado and Virginia AI Acts), companies have to stay alert about how their AI systems store and use personal data and other confidential information.
Better safe than sorry (and on the front pages) — confront data privacy concerns by embedding privacy-by-design principles in data collection, storage, and usage processes:
- Reduce data usage to the essential minimum
- Encrypt sensitive data at rest
- Anonymize private data before feeding it into AI models
- Incorporate human review mechanisms to oversee AI decisions
No data governance
AI can’t scale without robust governance guardrails. Therefore, the development of artificial intelligence requires an end-to-end data lifecycle strategy, from secure data collection to its safe disposal.
- Implement data quality monitoring procedures
- Establish clear data ownership
- Impose strict data access rules
- Develop data privacy policies to protect data from misuse
- Set up templates to enable data traceability
- Ensure you have a centralized data storage
- Arrange data inventory mechanisms
- Enforce clear data disposal practices
Is your infrastructure AI-ready?
Infrastructure to support the AI development process includes cloud services, data storage, and network security. Our AI engineers share insights on optimizing each component.
Cloud services
The type of model you pick directly affects cloud costs and storage needs. And that’s the reason behind 77% of companies using smaller models (13B parameters and below) rather than large ones.
The challenge of using the right tool for the right job is especially valid when choosing between LLMs and SLMs. LLMs shine when it comes to answering general queries. But SLMs can be quickly trained on a small,
highly curated dataset to address your specific use cases. Another way to cover specific tasks is by using industry-specific models. There’s already a whole range, from BloombergGPT for finance to BioNeMo for biotech to ClimateBERT for climate change research.
— Pavel Klapatsiuk, AI Lead Engineer, *instinctools
There’s also a question of API-based vs. self-hosted models. When accessing AI capabilities via API, you avoid costly infrastructure investments, but lack control. Self-hosting AI models, on the other hand, come with high compute demands but offer complete control over the model and airtight-secure data pipelines.
Data storage
Traditional data lakes and warehouses fall short in supporting the agility, governance, and scalability requirements of AI initiatives. New architectures like data lakehouses, data mesh, and data fabric have brought AI development from hype to reality.
Each data architecture type has its highs and lows, and choosing the right one involves balancing various trade-offs, including limited scalability and flexibility, weaker data governance capabilities, lower data security, and higher cost.
Our AI projects show that a data lakehouse often meets most business needs — single data storage with built-in data governance controls for different kinds of big data, seamless scalability, and adequate functional security.
— Ivan Dubouski, Head of AI CoE, *instinctools
Network security
Last but not least in your infrastructure assessment is network security. Robust policies and controls are vital for protecting your resources (data storage, models, APIs) from external or internal threats, such as data exfiltration, model poisoning, adversarial inputs, unauthorized API access, etc.
Our recommendations for secure AI development include:
- Adopting a zero trust security posture with granular access controls and centralized identity management (IAM)
- Integrating network security tools (SIEM, SOAR, or XDR) to centralize signals from an automated anomaly detection system and enable fast, coordinated incident response across your AI infrastructure.
Can your staff take on AI roles?
IBM pinpoints that 84% of companies considering AI development lack AI-specific technical competence and resort to augmenting their team as they don’t have months to hunt for and win over top talents in data science, ML engineering, and other AI-specific areas.
Raising strong in-house AI expertise isn’t a weekend bootcamp. While some professionals can pivot into AI-related roles relatively quickly, upskilling takes time.
For instance, given the widespread use of Python in deep learning, ML, and NLP, your in-house Python developers already have a head start. With focused upskilling, they can transition into roles like prompt engineers or AI/ML engineers. In my experience, the first option will require 3+ weeks of full-scale training, and the second will take 3+ months of full-time learning and hands-on practice.
So the question is: can you afford investing in the employees’ reskilling without compromising the momentum of your current projects?
— Ivan Dubouski, Head of AI CoE, *instinctools
Struggling with data, infrastructure, or talent?
Navigating AI development risks
The same AI software that can increase your revenue by more than 10% can also expose the company to various data, model, operational, and ethics risks. While many consulting firms warn about AI dangers in vague terms, we draw from hands-on project experience and offer targeted, actionable ways to handle them, all aligned with the NIST AI risk management framework.
Cybersecurity threats
Only 24% of AI initiatives are secured against AI-related threats, such as data poisoning, data tampering, API security breaches, model inversion attacks, prompt injections, etc.
Secure all the stages of the AI pipeline to enable the safe development of AI solutions.
- Data collection and handling. Data encryption at rest and in transit and strict access controls are the basic best practices.
- ML model training. If you access open-source models via APIs, use strong authentication protocols like OAuth, OpenID Connect, etc.
- ML model usage. Use a machine learning detection and response (MLDR) solution to monitor the models’ behavior and quickly detect and quarantine or disconnect compromised models.
Data privacy issues
Inform users about data collection practices for your AI system, such as what personally identifiable information (PII) you want to collect, for what purposes, how it’ll be stored and used, Then, let customers decide if they want to share their data.
In highly regulated industries like finance and healthcare, where companies are obliged to comply with specific regulatory acts, such as HIPAA and GLBA, organizations should consider replacing real information with synthetic data.
Intellectual property infringement
Even though AI-centered copyright laws, such as the Generative AI Copyright Disclosure Act in the US, the EU AI Act, and the Generative AI Training Licence in the UK, are still in the legislative process, you’d better play it safe.
To weed out the possibility of intellectual property violation while developing AI systems:
- Check your datasets for potential copyrighted content with copyright detection software, such as DE-COP for text, Google Vision AI for images, Audible Magic for audio, etc.
- Use publicly available data or data that’s explicitly licensed for use, distribution, modification, and commercial use (for example, has a Creative Commons BY license).
Lack of explainability and transparency
The complex nature of machine learning algorithms is a double-edged sword. On the bright side, it contributes to delivering highly accurate outputs. On the dark side, the logic behind these algorithms is challenging to understand and explain.
If you want neural networks and deep learning algorithms to be an open book, adopt explainable AI techniques tailored to your model type:
- Feature importance, LIME, and SHAP for simpler machine learning models, such as decision trees, gradient boosting, and random forests.
- DeepLIFT and integrated gradients for more complex models with deep learning and neural networks at their core.
Misinformation and manipulation
AI hallucinations are one of the examples of misinformation that damages the reputation of AI systems. Malicious manipulations, like reverse engineering and model hacking, are even more harmful, as attackers can expose sensitive or confidential information or poison your ML model with bias.
Safeguard your AI development process by:
- Using high-quality training data
- Rigorously testing your ML model
- Continually evaluating and refining the ML model
- Keeping humans in the loop to review and validate the accuracy of the model’s outputs
AI-specific technical debt
Quickly patched data pipelines, rushed model deployments, and poorly documented feature engineering slow down future iterations of your AI software, raise its maintenance costs, and increase the risk of model failures.
To minimize the amount of AI-related tech debt that builds up around data, models, and infrastructure, strengthen all of the weak points:
- Set up automated data validation, standardize data pipelines, and track data lineage to get high-quality, consistent, and reliable data.
- Use monitoring tools with auto alerts to catch model drift immediately.
- Prioritize building solid MLOps pipelines and scalable infrastructure that support deployment, monitoring, and retraining to ensure consistent behavior of the ML model in production.
Can’t wrap your head around all possible AI risks?
Solid AI governance as your clear-cut to risk-free, responsible AI
AI governance should be established from day one rather than tabled and taken care of later. Without well-documented rules and standards for aligning your AI development with ethical and human values, your AI initiatives are doomed to face the aforementioned risks.
Deloitte’s AI research highlights that the lack of a sound AI governance framework is one of the most widespread roadblock companies bump into when adopting artificial intelligence. Another survey pinpoints the chasm between what organizations declare about AI governance and what they actually do. If you’re in the same boat as 79% of businesses that don’t have a robust AI governance framework yet, mind that the boat is rocking, and it’s time to act.
Here’s a set of responsible-by-design AI principles to use as a blueprint for your AI governance framework:
- Build an AI ethics code around principles, such as fairness, interpretability, and human oversight.
- Keep an eye on local and global AI regulations and align your internal AI policies with new standards before they come into force.
- Raise in-house data stewards and risk officers who’ll be in charge of overseeing AI development and deployment.
- Create a compliance checklist and run regular audits to ensure policy adherence — quarterly for AI systems used in finance and healthcare, and annually for less regulated cases.
- Address AI-specific failure scenarios, such as model bias, drift, misuse, etc., with on-point risk mitigation practices (AI model optimization, pre-deployment bias audit, automated drift detection, detailed audit logs).
- Incorporate responsible AI best practices, such as model explainability, data encryption and anonymization, bias monitoring, etc.
Keep in mind that your AI governance policies aren’t set in stone. You should review and refresh them whenever you add new machine learning models to your tech stack, spot even minor incidents or failures, and if new AI regulations emerge.
— Pavel Klapatsiuk, AI Lead Engineer, *instinctools
Stages of the AI development lifecycle
As tempting as it is to jump straight into the development of AI technology, selecting ML models, and fine-tuning them on your data, the right place to start is by defining your business problem. Only then can you clearly see high-value, low-risk AI use cases capable of moving the needle.
That’s why AI projects should begin with an exploratory and planning workshop focused on the following:
- Articulating your business problem to set clear goals and requirements for your AI development project
- Identifying low-barrier, high-impact use cases and establishing their success metrics
- Creating technology and business risk profiles for selected AI use cases
After strategic preparation is done, move to the development steps:
- Selecting an AI model compatible with your existing infrastructure and matching your performance metrics
- Customizing the AI model to tailor it to your particular use case
- Integrating the fine-tuned model into your infrastructure by connecting it to relevant databases, data pipelines, and APIs
- Verifying the model’s performance under production conditions and fine-tuning it further with model distillation techniques if needed
- Deploying your AI solution and monitoring its performance in real-world scenarios
- Continuously improving the software’s performance by collecting user feedback and retraining or updating the underlying model to enhance output quality and accuracy
Here’s a thing. You don’t need to reinvent the wheel with every new use case. If you invest in robust MLOps practices, you’ll always have a scalable, low-friction AI development process.
— Ivan Dubouski, Head of AI CoE, *instinctools
Get your AI initiative rolling
How to decrease AI development cost? Bonus cheat sheet from our AI engineers
AI development doesn’t have to break the bank. Our AI teams have battle-tested tips for building high-performing and accurate AI solutions at half the cost.
- Use API-based foundation models instead of self-hosted ones. This way, you pay as you go instead of investing in computing power upfront. If you decide on self-hosting, you can still save by adopting optimized inference engines (vLLM, TensorRT) to slash inference costs by up to 60–80%.
- Apply transfer learning instead of full training and use PEFT techniques (LoRA, QLoRA, or QDoRA) for cost-efficient fine-tuning.
- Use SLMs whenever possible to pay a lower per-token cost.
- Store and reuse model outputs for solutions like AI-powered FAQ bots to avoid paying for the same answer 1000 times. This way, you cut API costs by 30–60% and improve response speed.
Summary
Just like the cloud changed the game last decade, AI is set to define the next, completely rewriting the rules of how businesses operate. While tackling individual use cases is a natural starting point, long-term success comes from embedding AI development into your broader business strategy. Adoption at scale isn’t just a tech upgrade, but rather a company-wide transformation spanning data, infrastructure, and workforce.
If you struggle to move from planning and scattered experimentation to structured execution and scaling, it’s time to bring in expert guidance from a trusted AI and ML development company.
Ready to start your AI journey?
FAQ
From our experience, AI development delivers most benefits in ecommerce, finance, healthcare, manufacturing, transportation, energy, media, and telecommunications sectors. However, there are a lot of low-barrier, high-impact AI use cases across other industries.
Depending on the current state of your data, infrastructure, and workforce readiness, AI implementation takes 12 to 36 months.
To accelerate the development of AI you can use API-based foundation models to kick off your project quickly. But to speed up the evolution of your AI initiative in the long run, you should invest in building solid MLOps pipelines and regular staff reskilling and upskilling programs.
New developments in AI, such as AI agents, are considered the smartest and most advanced AI form, as agentic systems can initiate and perform complex multi-step tasks within a diverse software ecosystem without human intervention.
The latest developments in AI indicate that AI’s level of responsibility and autonomy will increase. That means that AI agents will keep dominating the AI industry in the foreseeable future, causing a shift from application architecture to AI agent architecture.
Current trends, such as further domain and industry customization of the foundational models and exponential evolution of generative AI, conversational AI, and edge AI use cases, will keep unfolding.