AI Development
AI Chatbot Development: Costs, Timeline, and What to Expect
Updated February 24, 2026By the CalliArc team
Key takeaway
A scoped FAQ chatbot can ship in 3–6 weeks for $8,000–$25,000; a RAG-powered assistant grounded in your documents and integrated with your systems typically runs $30,000–$100,000+. Data readiness and integrations drive most of the cost.
AI chatbots span a wide range — from a scripted FAQ widget to an assistant that answers from your knowledge base and takes actions in your systems. Cost tracks capability and, more than anything, the state of your data.
Cost by capability
- FAQ / scripted bot: $8,000–$25,000
- RAG assistant grounded in your docs: $30,000–$70,000
- Agentic assistant that takes actions + integrates: $70,000–$100,000+
What changes the price
- Quality and structure of the knowledge base it draws on
- Integrations (support desk, CRM, order systems)
- Guardrails, evaluation, and human-in-the-loop review
Where to start
Pilot on one high-volume topic, measure deflection and accuracy, then expand. Our free AI Readiness Assessment flags whether your data is ready before you invest.