Rule-Based vs. Generative AI Costs

The underlying architecture directly dictates the initial capital requirement. Rule-based chatbots use simple "if-then" decision trees, making them quick to deploy and inexpensive ($5,000 – $15,00 but limited in flexibility. Conversely, Generative AI and Large Language Model (LLM) powered chatbots leverage sophisticated natural language processing and context awareness. While Generative AI bots significantly enhance user engagement and can perform open-ended problem solving, they require significant investment ($60,000 – $150,000+) to handle model integration, prompt engineering, and response validation.

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