How to Make an AI App or software: A comprehensive guide for businesses

In today’s digital terrain, AI isn’t just about complex algorithms and cutting-edge technology; it’s about solving real-world problems, creating value, and pushing the boundaries of what’s possible.

In this guide, we’ll break down the AI development process step-by-step and share insights from our projects such as WriteWise AI and SeekrCareers so that you can minimize the challenges and transform your futuristic concept into a practical business solution.  

So, whether you’re a startup exploring AI possibilities or an established business aiming to innovate, this guide will provide actionable steps to help you create AI systems that deliver tangible value. But before diving in, let’s understand…

The Core of AI

The core of AI is its ability to think and act like humans, solve problems, learn from experience, and make decisions. At its heart, AI works by understanding data, finding patterns, and using that knowledge to perform tasks better over time. 

So, it’s not just about automation; AI is about creating smart systems that can adapt and improve. What makes AI powerful is its focus on helping humans—making things faster, simpler, and more efficient. In short, the real core of AI lies in using intelligence to solve real-world problems while ensuring it’s fair, ethical, and beneficial for everyone.

Types of AI: From simple to advanced

  1. Narrow AI: Specializes in specific tasks like voice assistants or recommendation systems.
  2. General AI: Hypothetical AI capable of performing any intellectual task a human can do.
  3. Super AI: An advanced form, surpassing human intelligence (still theoretical).

Core technologies powering AI

  • Machine Learning (ML) drives AI’s ability to analyze data, identify patterns, and make predictions. 
  • Deep Learning, a subset of ML, utilizes neural networks to process vast amounts of data for more complex tasks, such as image recognition or natural language understanding.
  • Natural Language Processing (NLP) powers human-like communication, enabling chatbots and virtual assistants. 
  • Computer Vision enables machines to interpret visual data, while edge computing ensures real-time AI processing. 
  • Cloud computing provides scalable resources and robust frameworks like TensorFlow and PyTorch to streamline AI development. 

Together, these technologies form the backbone of AI.

How to Make an AI: A step by step process

Currently, 40% of global companies leverage AI to automate workflows, refine marketing strategies, and improve customer support. And, the global AI market is projected to soar to $1.85 trillion by 2030 (Source). 

In practical terms, AI powers tools we interact with daily, from chatbots and personalized recommendations to fraud detection systems. So, first…

Step 1: Define your AI goals & use case

Before diving into AI development, clarity is key. Building AI without a clear direction is like setting sail without a map—you might move, but you won’t get anywhere meaningful. 

Steps to define your goal and use cases

Identify the problem you want to solve: AI thrives when it addresses real-world challenges. Start by asking:

  • What problem are we solving?
  • How will AI add value to our process or product?
  • Who will benefit from this AI solution?

For example, our in-house project WriteWise AI, is designed to simplify content creation for businesses and individuals by offering an intuitive AI-powered writing assistant.

Define your objectives and metrics for success: Once you identify the problem, establish clear objectives. Do you want to automate tasks, enhance customer experiences, or improve decision-making? Alongside this, define key performance indicators (KPIs) to measure your AI’s success, such as:

  • Increased efficiency (e.g., processing time reduction).
  • Improved accuracy (e.g., error rate reduction in predictions).
  • Enhanced user satisfaction (e.g., survey ratings).

 Narrow down the use case: AI can do a lot, but starting small ensures focus and scalability. For example:

  • Customer Support: Automate FAQs using AI chatbots.
  • Marketing: Personalize recommendations with machine learning algorithms.
  • Operations: Predict demand using data analytics.

By defining your AI goals and use case, you set the foundation for your project that delivers real, and measurable value. 

Step 2: Feasibility analysis and resource planning

Once your AI goals and use cases are defined, the next step is to assess feasibility and plan your resources effectively to ensure you’re building a solution that is practical, achievable, and aligned with your capabilities.

Key steps for analysis and resource planning

Conduct a feasibility study: Evaluate whether your proposed AI solution is technically and economically viable. To do this focus on:

  • Data Availability: Does sufficient, high-quality data exist for training your AI model?
  • Technological Requirements: Can current tools and technologies support your goals?
  • Budget Constraints: Is your budget sufficient to cover development, deployment, and maintenance?
  • Regulatory Compliance: Are there legal or ethical constraints, such as GDPR for data privacy?

For example, building an AI resume builder like our project SeekrCareers requires access to anonymized resume data and compliance with privacy laws to protect user information.

Assess your team and skills: AI development demands specialized skills. So, assess your team’s expertise in areas like:

  • Machine Learning Algorithms
  • Programming Languages (e.g., Python, R)
  • Data Engineering
  • Cloud Platforms (e.g., AWS, Azure)

If skills are lacking, consider hiring talent or partnering with an experienced AI development company.

Plan your infrastructure: Otherwise, start to plan your infrastructure by  choosing the right tools and platforms that meet your needs:

  • Cloud Platforms: For scalability and cost-efficiency (e.g., AWS Sagemaker, Google AI).
  • Open-Source Libraries: TensorFlow, PyTorch, or Scikit-learn for faster prototyping.

Hardware Requirements: GPUs or TPUs for deep learning tasks.

Budget and timeline estimation: Next, break down the project into phases and estimate costs and timelines for:

  1. Data acquisition and preprocessing.
  2. Model development and testing.
  3. Deployment and maintenance.

Step 3: Data collection and preparation

Data is the backbone of any AI project. Without high-quality data, even the most sophisticated AI algorithms will fail to deliver accurate results. 

Data collection process

Identify data sources: Your AI system will only be as good as the data it’s trained on. Depending on your use case, data sources may include:

  • Internal Databases: Existing customer or operational data.
  • Public Datasets: Open-source data repositories (e.g., Kaggle, UCI Machine Learning Repository).
  • Web Scraping: For collecting real-time data from websites (ensure legal compliance).
  • APIs: External services offering structured data (e.g., social media, weather, or financial APIs).

For example, WriteWise AI utilized diverse datasets like articles and blogs to train its language models for varied writing styles and tones.

Ensure data quality: High-quality data is critical for accurate AI predictions. Evaluate and improve:

  • Completeness: Are there missing values?
  • Accuracy: Is the data correct and consistent?
  • Relevance: Is the data aligned with your AI goals?
  • Balance: Avoid skewed datasets that can lead to biased models.

Clean and preprocess data: Data rarely comes ready for AI. Preprocessing steps include:

  1. Removing Noise: Eliminate irrelevant or redundant information.
  2. Handling Missing Data: Fill gaps using imputation techniques or remove incomplete records.
  3. Normalizing Data: Scale features to ensure uniformity, especially for algorithms sensitive to value ranges.
  4. Encoding Data: Convert categorical variables into numeric values using one-hot encoding or label encoding.
  5. Data Augmentation: For limited datasets, apply techniques like rotating or flipping images for diversity.

Address data security and ethics: Respect user privacy and comply with legal frameworks. For instance:

  • Anonymize sensitive data to protect identities.
  • Store data securely using encryption protocols.
  • Follow global regulations like GDPR, HIPAA, or CCPA.

Automate data pipelines: Consider creating automated pipelines for continuous data collection, cleaning, and integration. Tools like Apache Kafka or Airflow can streamline this process.

Step 4: Exploratory Data Analysis (EDA)

EDA not only gives you a deeper understanding of your dataset but also helps in refining your AI model design. It ensures that the data you’re using is appropriate and aligned with your AI objectives. Result: minimize errors in the later stages by identifying issues such as missing values, outliers, or irrelevant features early on.

Key steps in EDA

Understand the Dataset:

  • Examine data types, dimensions, and basic statistics (mean, median, variance).
  • Use summary functions to identify inconsistencies or anomalies.

Visualize the Data: Leverage tools like Matplotlib, Seaborn, or Tableau for charts and graphs.

Common visualizations include:

  • Histograms for distribution.
  • Scatterplots to examine relationships.
  • Boxplots to identify outliers.

Analyze Correlations

  • Use correlation matrices to identify how features relate to each other.
  • Remove redundant features that don’t add value to the model.

Handle Missing Values and Outliers:

  • Impute missing data using mean, median, or predictive models.
  •  Remove or adjust outliers to prevent skewed predictions.

Feature Engineering:

  • Create new features that better represent the underlying data.
  • For example, if time data is provided, derive features like “hour of day” or “day of week.”

Step 5: Model selection and design

Once you’ve explored and refined your data, it’s time to choose the right AI model and design its architecture. The success of your AI system largely depends on selecting a model that aligns with your use case and data characteristics.

Key Considerations

Type of Problem:

  • Classification: For problems like spam detection or image labeling.
  • Regression: For predicting continuous values like sales or temperatures.

Clustering: For grouping similar data points, e.g., customer segmentation.

Data Size and Complexity:

  • For small datasets, simpler algorithms like Decision Trees or Logistic Regression may suffice.
  • For large and complex datasets, advanced models like Random Forests or Neural Networks are more effective.

Explainability vs. Performance:

  • In industries like healthcare, interpretable models (e.g., Linear Regression) are often preferred.
  • For tasks requiring high accuracy, black-box models (e.g., Deep Learning) might be more suitable.

Designing the model architecture

If using deep learning, architecture design is critical. Key decisions include:

  • Number of Layers: How deep should the neural network be?
  • Type of Layers: Choose from dense, convolutional, or recurrent layers based on the task.
  • Activation Functions: Use ReLU, sigmoid, or softmax based on output requirements.

Experiment with Pre-Trained Models

Try to use pre-trained models like GPT, BERT, or ResNet, to save time and resources. These models are trained on massive datasets and can be fine-tuned for your specific needs. Otherwise, you can find pre-trained models from AWS and Kaggle

But, if want to develop, use the…

Toolkits for model development

  • Scikit-learn: Ideal for traditional machine learning models.
  • TensorFlow/Keras or PyTorch: For deep learning models.

Step 6: Model Training and Optimization

With your model designed, the next step is training it to learn from your data. This involves feeding the model data, adjusting its parameters, and ensuring it performs optimally.

To train the model

    • Split the Data:

      1. Training Data: Used to teach the model (70–80%).
      2. Validation Data: Helps tune hyperparameters (10–15%).
      3. Test Data: Assess the model’s final accuracy (10–15%).
    • Define Loss Function:

      1. The loss function measures the difference between predicted and actual outcomes.
      2. Examples: Mean Squared Error for regression and cross-entropy Loss for classification.
    • Optimize the Model:

      1. Use optimization algorithms like Stochastic Gradient Descent (SGD) or Adam to minimize the loss function.
      2. Adjust weights and biases iteratively for better performance.
    • Set Hyperparameters: Fine-tune hyperparameters like learning rate, batch size, and epochs to balance accuracy and efficiency.
  • Avoid overfitting and underfitting

Overfitting: The model performs well on training data but poorly on new data.

Solution: Use techniques like regularization (L1/L2), dropout layers, or early stopping.

Underfitting: The model is too simple to capture patterns.

Solution: Increase model complexity or provide more data.

Monitor performance metrics

Next, track key metrics to evaluate model performance, such as:

  • Accuracy: Overall prediction correctness.
  • Precision and Recall: Important for imbalanced datasets.
  • F1 Score: Balances precision and recall.

Iterative improvement

AI models are rarely perfect on the first try. Training is an iterative process where you:

  1. Analyze performance.
  2. Refine data or hyperparameters.
  3. Retrain until the desired results are achieved.

Leverage GPUs or Cloud Services

Model training is computationally intensive. So, use tools like NVIDIA GPUs, Google Colab, or cloud platforms (e.g., AWS or Azure) to accelerate the process.

Step 7: Testing and Validation

This step evaluates the model’s reliability, accuracy, and generalizability across diverse datasets.

Key Steps in Testing and Validation

Define Evaluation Metrics: Metrics depend on the type of problem:

  • Classification: Accuracy, Precision, Recall, F1 Score, AUC-ROC.
  • Regression: Mean Squared Error, Mean Absolute Error, R-squared.
  • Clustering: Silhouette Score, Dunn Index.

Cross-Validation: Use techniques like k-fold cross-validation to split your dataset into multiple subsets for training and testing. This approach ensures the model performs consistently across different samples.

Test with Edge Cases: Introduce outliers, noisy data, or incomplete inputs to evaluate robustness.

For example, if building a chatbot, test with slang or unexpected queries.

Simulate Real-World Scenarios:  Validate performance on real-world data (not seen during training or validation).

For AI-powered recommendation systems, simulate user interactions and evaluate the output.

Error Analysis: Analyze incorrect predictions to identify patterns.

For this, you can use the feedback to refine the model or adjust preprocessing steps.

Validation Dataset: Use a separate validation dataset to fine-tune hyperparameters without biasing the model’s final performance.

A/B Testing: Compare your AI model with existing systems or benchmarks.

Deploy two versions of the model to a subset of users and measure their outcomes.

Tools for Testing

  • Unit Testing: Validate individual components of the AI pipeline (e.g., Scikit-learn testing suite).
  • Integration Testing: Test the end-to-end process, ensuring seamless data flow and output generation.

Once your AI model passes testing, it’s ready to be deployed in a production environment. 

Step 8: Deployment

As testing and validation ensure your AI model is robust, trustworthy, and ready to deliver consistent performance in production, still requires…

Key Considerations for Deployment

Choose the Deployment Environment:

  1. On-Premises: Ideal for data-sensitive industries like healthcare or finance.
  2. Cloud Platforms: AWS, Google Cloud, or Azure for scalability and flexibility.
  3. Edge Deployment: For IoT devices or systems with limited connectivity.

Model Packaging: Export the model in a deployable format, such as TensorFlow SavedModel, PyTorch TorchScript, or ONNX to ensure compatibility with the deployment platform.

Set Up APIs: Build RESTful or GraphQL APIs to interact with the model. You can use frameworks like Flask, FastAPI, or Django.

Containerization: To ensure consistency across different environments, use Docker to package the model and its dependencies into a portable container.

Integrate with Existing Systems: Next, ensure the model seamlessly integrates with existing applications, databases, or APIs. For this, use middleware or message queues like RabbitMQ or Kafka for smooth communication.

Scalability and Load Balancing: Set up load balancers to distribute requests evenly across instances. Try to use orchestration tools also like Kubernetes to manage scaling during high traffic.

Monitor Model Performance: Deploy monitoring tools to track metrics such as response time, error rates, and throughput, also use dashboards like Prometheus, and Grafana for real-time monitoring.

Retrain and Update Models: As real-world data and user behavior evolve over time, so set up automated pipelines to collect new data, retrain the model, and redeploy updated versions.

Ensure Security: According to IBM’s Cost of a Data Breach Report, the average cost of a data breach in 2024 is $4.88 million, a 10% increase from last year and the highest ever. To mitigate this, implement encryption for data in transit and at rest, and use authentication mechanisms like OAuth or API keys to prevent unauthorized access.

Step 9: Feedback Collection and Iteration

After deployment, gathering feedback from users and stakeholders provides actionable insights into how the model performs, uncovers weaknesses, and identifies areas for improvement.

Key steps in feedback collection and iteration

Define Feedback Mechanisms:

  • User Feedback: Set up feedback forms, surveys, or app ratings for end-users.
  • Automated Monitoring: Use analytics tools to track model behavior, error rates, and latency.
  • Stakeholder Review: Hold regular review sessions with key stakeholders for their insights.

Set Up Data Collection Pipelines: Capture logs of model interactions to analyze usage patterns. But, don’t forget to ensure user data is anonymized and collected in compliance with privacy regulations (e.g., GDPR, CCPA).

Analyze Feedback: Then, categorize feedback into areas such as usability, performance, and feature requests. Also, quantify the feedback wherever possible to prioritize the most critical issues.

Refine the Model: Experiment with different algorithms, preprocessing techniques, or feature engineering to address identified issues, such as bias in predictions or slow processing times.

Retrain with New Data: Use the newly collected data to retrain the model, ensuring it captures updated patterns.

Iterate Frequently: As AI systems evolve continuously, so regularly schedule iteration cycles to keep the model relevant and effective.

After that, your AI solution probably transforms into a dynamic, user-centric system that can adapt to changing requirements.

Step 10: Scaling and Maintenance

So, it’s time to scale that meets increasing demand while remaining reliable, efficient, and cost-effective. Proper scaling allows your AI to handle increased workloads without compromising performance, while maintenance ensures it stays relevant, secure, and up-to-date.

Scaling involves two approaches:

Horizontal Scaling: Add more servers or nodes to distribute the load along with using cloud platforms like AWS or Azure and load balancers to handle traffic spikes efficiently.

Vertical Scaling: If needed, upgrade the hardware capabilities of existing machines to optimize databases with sharding or distributed systems like MongoDB for better scalability.

For Maintenance, focus on keeping the system optimized by:

  • Model Monitoring: Regularly monitor performance metrics like response time and accuracy using tools like Grafana.
  • Retraining Models: Set up automated pipelines to retrain models with updated data, preventing model drift.

Bug Fixes and Updates: Ensure libraries and dependencies are updated and vulnerabilities are addressed.

By incorporating scalability and maintenance into the architecture from the outset, your AI system can expand effortlessly alongside your business while remaining cost-effective and reliable. But let’s be real—challenges can still pop up, right?

Challenges and practical solutions in AI development

That’s why, drawing from our expertise in creating AI solutions like WriteWise AI and SeekrCareers, we’ve identified key obstacles and the best practices to overcome them. The following table provides a clear view of these insights: 

ChallengesWhy ariseBest practices to avoid
Data Quality and BiasPoorly collected or imbalanced datasets lead to inaccurate or unfair model outputs.- Regularly audit datasets for bias.
- Clean and preprocess data meticulously.
- Use synthetic data to balance datasets.
Insufficient DataLack of enough samples or rare event data hampers model training.- Leverage pre-trained models or transfer learning.
- Use data augmentation techniques to expand datasets.
Algorithm SelectionMisunderstanding the problem domain or dataset characteristics.- Experiment with multiple algorithms before finalizing.
- Start simple and iterate based on performance metrics.
Model Overfitting/UnderfittingOverfitting happens with overly complex models, while underfitting occurs with overly simple ones.- Apply regularization techniques (e.g., L1, L2).
- Use cross-validation to assess model performance.
Infrastructure CostsAI requires high computational power for training and inference.- Opt for cloud solutions like AWS or Azure.
- Use efficient model compression techniques to reduce computational needs.
Deployment ComplexityCompatibility issues between development and production environments.- Use containerization tools like Docker or Kubernetes.
- Establish CI/CD pipelines for automated deployment.
ScalabilityGrowing datasets and user demand increase load on systems.- Design distributed systems using frameworks like Apache Spark.
- Incorporate load balancing and autoscaling.
Regulatory ComplianceNot adhering to privacy laws (e.g., GDPR, HIPAA) can lead to legal penalties.- Implement "Privacy by Design" principles from the start.
- Conduct regular audits for compliance with regulations.
Model DriftData patterns evolve, making the original model less effective over time.- Monitor performance metrics continuously.
- Set up automated retraining workflows using updated data.
Adversarial AttacksExploitation of vulnerabilities in AI models using malicious inputs.- Secure endpoints with encryption and authentication.
- Conduct adversarial testing to identify vulnerabilities.
Team Collaboration IssuesMiscommunication or lack of alignment between teams delays progress.- Use tools like JIRA or Slack for clear communication.
- Ensure early collaboration with cross-functional teams.

Frequently Asked Questions

Analyze your business challenges and identify repetitive tasks or areas needing optimization where AI can add value.

Python is the most widely used, but others like R, Java, and Julia are also suitable depending on the application.

The timeline varies based on complexity, data availability, and use case but typically ranges from 3 to 12 months.

Not always, but cloud platforms like AWS, Azure, or Google Cloud provide scalability and cost-effectiveness for larger projects.

Yes, with the rise of pre-built AI tools and modular AI platforms, small businesses can adopt AI solutions without excessive costs.

AI is the broader concept of creating intelligent systems, while machine learning is a subset focused on training machines to learn from data.

Regularly monitor performance, retrain with updated data, and address model drift to ensure ongoing accuracy and relevance.



Sudeep Bhatnagar
Co-founder & Director of Business
Sudeep Bhatnagar

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