How to Build an Intelligent AI Model: An Enterprise Guide

“AI saves lives.”

When 40-year-old Lauren Bannon turned to ChatGPT after multiple misdiagnoses, she sought answers. What she found was life-changing. The AI suggested a condition her doctors had overlooked—”Hashimoto’s disease”—which eventually led to the early detection of two cancerous lumps. That moment didn’t just save her life; it spotlighted the extraordinary potential of AI in mimicking human intelligence and transforming lives.

Stories show how far AI has come in healthcare and across other industries, including financial predictions in BFSI and autonomous driving in the automotive sector. While it can’t replace experts, it certainly offers critical insights, enables discoveries, supports real-world decision-making, and sometimes even saves lives.

Who would have thought that technologies could perform complex tasks with such precision and perfection a decade ago? But today it has become a reality. As a result, it has become essential for enterprises to build intelligent AI models that can meet the demands of the modern world.

This blog will walk you through how to build an AI model for enterprises. By examining the confluence of cutting-edge technology and strategic intelligence, we will explore the process, complexities, and costs of creating AI models that enable enterprises to foster innovation and remain ahead in a data-centric environment.

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The Unprecedented Growth of the Global AI Market

The increasing reliance on AI technologies is reflected in the growth of the global AI market, which is poised to grow exponentially over the next decade. According to Statista, by 2024, the market reached over $184 billion, a jump of nearly $50 billion from the previous year, with projections crossing $826 billion by 2030.

This growth is attributed to the myriad of industries that have already integrated AI into their operational systems. Notable developments include the rise of chatbots, image-generating AI, and other AI-based mobile applications, making the future of artificial intelligence promising.

Within this landscape, generative AI stands out as a rapidly evolving segment. A new era of opportunities began in 2022 with the release of ChatGPT. This marks a pivotal shift in the adoption of generative AI. The transition is visible when analyzing the dramatic rise in the utilization of generative AI from 2022 to 2024.

Gen AI adoption nearly doubled in just two years, from $29 billion in 2022 to $50 billion in 2024. The Gen AI market is expected to exceed the market volume of $442.07 billion by 2031. Companies that moved early are already witnessing clear returns with each penny invested in Gen AI development.

This momentum will continue as users seek more sophisticated, human-like chatbot experiences. Upcoming iterations of ChatGPT and similar AI models will likely fuel this trend even further.

Related Article: Cost of Developing a Chatbot like ChatGPT

Understanding the Working Principles of the Intelligent AI Model

Intelligent AI models are designed with a high level of cognitive capacities and the ability to carry out challenging tasks with comprehension and judgment comparable to human intelligence. These models are created with complex algorithms and deep learning strategies, frequently incorporating neural networks, enabling them to process enormous volumes of data, recognize patterns, and anticipate or take actions based on the input given.

An intelligent AI application or model is characterized by its ability to learn, reason, understand, adapt, interact, solve problems, and generate accurate results.

At the core of their work lies a multi-stage process: data collection, training, inference, and continuous learning. Intelligent AI models begin by consuming large datasets to identify meaningful patterns. These patterns are processed through layers of neural networks that mimic the human brain’s functioning, enabling the model to learn correlations, make decisions, and refine outputs based on feedback. This adaptive learning loop improves the model over time, delivering more accurate predictions and human-like interactions.

Quote 1 

“AI models are like children; they learn from what they see. If we don’t curate their environment carefully, they will absorb the worst of our world.”
By Yoshua Bengio, a pioneer of artificial neural networks and deep learning

For instance, a large language model like ChatGPT, which can generate human-like text in response to commands and identify objects, people, and scenarios in photos, is one example of an intelligent AI model.

A real-world application of such a model is seen in Appinventiv’s collaboration with JobGet, an AI-powered job search platform. By integrating GPS functionality, our intelligent AI model developers successfully established a mechanism to connect job-seekers with nearby companies actively seeking to hire.

The outcome was remarkable: JobGet secured $52 million in Series B funding and facilitated employment for over 150,000 users.

How the Five-Layer Model Optimizes Enterprise AI Systems

In order to build a cohesive AI system, enterprise AI architecture often comprises multiple layers. The five-layer model is a popular strategy that divides the various parts of an AI system into distinct levels, each with its own function. The five-layer enterprise AI architecture paradigm is described in the following way:

Infrastructure Layer

The infrastructure layer offers the computing power needed for data processing and analysis. This layer consists of hardware resources that speed up AI computations, including servers, GPUs (Graphics Processing Units), and other specialized tools. Enterprises can choose from scalable and adaptable infrastructure alternatives on cloud platforms like AWS, Azure, and Google Cloud.

Data Layer

Data is the cornerstone of any AI system. Data is collected, stored, and preprocessed in the data layer. Tasks, including data cleansing, transformation, standardization, and enhancement, fall under this layer. High-quality, well-organized data is necessary to develop accurate and efficient AI models. Businesses frequently utilize data lakes or warehouses to store and manage massive data.

Service Layer

The service layer is concerned with servicing and deploying intelligent AI models to applications, services, or end users. This layer entails developing APIs (Application Programming Interfaces), enabling communication between systems and AI models. It involves activities including scaling, monitoring, and model deployment. Architectures with microservices and containers are frequently utilized to speed up deployment and management.

Model Layer

The actual AI models are created and trained at this layer. In this layer, relevant algorithms are chosen, neural network designs are crafted, hyperparameters are tuned, and models are trained using labeled data. Constructing and training AI models on this layer is a common practice using machine learning frameworks like TensorFlow and PyTorch.

Application Layer

The AI capabilities are linked to business apps and procedures at the application layer. This layer includes creating apps that use the predictions and suggestions made by the AI models and incorporating AI insights into decision-making processes. These apps can be used in many fields, such as fraud prevention, supply chain optimization, and customer service.

How to Make an AI Model – A Step-by-Step Process

Building an AI model might sound like a complex chore, but it all starts with the right approach. Wondering how AI models are created? Well, here is a step-by-step process for building an AI model that serves your goals and addresses your enterprise’s challenges.

1. Identify the Issue and Goals

Start by outlining the issue that the AI model will attempt to tackle. Identify the goals and outcomes you plan to achieve, along with listing the challenges. This clarity will direct your model-building efforts, guaranteeing the fulfillment of your business goals. Not sure how to do it right? Collaborate with a dedicated IT consulting services firm, and they will help you complete the process with strategic guidance.

2. Gather and Prepare Data

Data is the foundation of artificial intelligence model development. To ensure practical effectiveness, the model must be tested in real-world scenarios, making it essential to choose datasets that appropriately reflect those scenarios.

Before training begins, the data should undergo careful cleaning and preprocessing operations. This will help remove any inconsistencies from the data before use. Additionally, thorough data labeling and management are critical to ensure the model learns effectively and delivers accurate results.

3. Choose the Correct Algorithm

Depending on the nature of your challenge, opt for the suitable deep learning algorithm. CNNs are excellent for tasks involving images, RNNs are ideal for functions involving sequence data, such as text and audio, and transformers can manage complicated contextual relationships in data.

Also Read: Transformer vs RNN in NLP: A Comparative Analysis

4. Design for Model Architecture

The next step is to create the model’s architecture. This entails counting the layers, neurons, and connections that make up the neural network. Model architecture has a big impact on how well the model performs. Therefore, try out several configurations to discover the best one.

5. Train, Validate, and Test the Data

Next, your AI developers create three subsets of your dataset for training, validation, and testing. Training data are used to train the model, validation data are used to help fine-tune hyperparameters, and testing data are used to gauge the model’s effectiveness when applied to untested data.

6. Train the AI Model

Now, your AI developers will move on to input the training data into the model and then use backpropagation to change the internal parameters incrementally. Computational resources are needed in this stage, and contemporary AI frameworks like TensorFlow and PyTorch make effective model training possible.

7. Fine-Tune the Hyperparameter

At this stage, the team will focus on improving the model’s performance by fine-tuning hyperparameters, including learning rate, batch size, and regularization methods. Experimentation is a key component of this iterative process to balance underfitting and overfitting.

8. Do Model Assessment

Next, the team uses the validation dataset to evaluate the model’s performance. Measurements, including accuracy, precision, recall, and F1-score, offer information about the model’s effectiveness. They refine the model iteratively using the findings from the evaluation.

9. Test and Deploy the AI Model

Lastly, the development team analyzes the model’s performance and effectiveness using the testing dataset, which mimics real-world situations. This step ensures the model is ready for deployment and fulfils the desired performance criteria.

10. Evaluate and Improve the Model Performance

In order to react to shifting data patterns and ensure long-term performance, you must continuously monitor and update the AI model. To keep the model accurate, high performing, and relevant, get user feedback, monitor its performance, and make adjustments as necessary.

Quote 2 

“Developing an AI model is just the beginning; the real work starts when scaling and maintaining it in a dynamic production environment.”
By Miku Jia, Director of AI/ML at Google Cloud

Now that we know how to create an AI model, let us move on to developing a generative AI model. This will ensure that enterprises can go beyond predictive capabilities and create intelligent systems capable of generating content, ideas, and solutions tailored to their evolving business needs and user expectations.

How to Build Generative AI Models?

Building a generative AI model represents a leap into the future of technology, offering transformative potential for businesses. By creating your generative AI model, you can automate and enhance various processes, driving innovation and efficiency across your operations.

If you are wondering how to build your own generative AI model, here are a few critical steps you should follow:

Clearly Define Your Objectives

Setting clear goals is crucial for aligning the model’s capabilities with business needs, whether it’s for generating text, creating images, or innovating in other areas.

Collect and Prepare Data

Collecting and refining high-quality data will be the foundation for training your model. Furthermore, the selection of appropriate algorithms and models is also critical. Depending on your specific goals, choose from advanced options like Generative Adversarial Networks (GANs), Variational Autoencoders (VAEs), or transformer models such as GPT-3.

Train Your Gen AI Model

Training your model requires considerable computational resources. Thus, monitoring the training process closely is vital to ensure the model is learning correctly and able to make adjustments as necessary.

Deploy the Gen AI Model

Upon successful validation, integrate the model into your operational framework where it can begin to deliver value by automating processes, enhancing creative capabilities, and improving decision-making.

Now that you understand how to develop AI models, let’s examine the multiple tools and frameworks required to develop a robust one.

Frameworks and Tools to Develop an Intelligent AI Model

To develop an intelligent AI model, businesses require the right set of tools and frameworks tailored to their goals, team structure, and use case complexity. Here is a categorized overview of essential tools, followed by comparison tables. This will help you choose the right AI tech stack and make informed decisions.

Model Development and Training Tools

These tools are the backbone of AI model creation, which enables training, testing, and deployment. For example, Tesla uses PyTorch for vision-based model training in its autonomous driving stack.

Big Data and Processing Tools

These frameworks are ideal when working with large-scale datasets and distributed environments. For example, enterprises widely adopt Anaconda to manage ML environments efficiently.

Visualization & Workflow Tools

These tools enhance collaboration, data exploration, and model explainability. For example, data scientists widely use Jupyter Notebooks to document and share model insights interactively.

Expert Advice on AI Tech Stack Selection

• Startups or MVP teams use Keras or Scikit-learn for quick iteration with limited resources.
• Research teams prefer PyTorch for experimentation and flexibility.
• Enterprises choose TensorFlow or Spark MLlib for production-grade systems.
• Beginner teams use AutoML tools like Google AutoML or H2O.ai for low-code implementation.

Also Read: AI TRiSM Framework: Enhancing Trust & Security in AI Systems

Still unsure what tools suit your AI model development?

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Challenges Associated with AI Model Development for Enterprises and Strategies to Overcome Them

AI model development for enterprises demands careful consideration to ensure success. Many challenges influence the AI-based intelligent model development life cycle, from data quality to ethical considerations. Let’s look at some of them in detail below and understand how to navigate the complex landscape of the custom AI model development process effectively.

Data Security and Privacy

Challenge: Managing sensitive enterprise data requires robust security measures.

Solution: Implementing strong data encryption and access controls can safeguard sensitive information throughout the development of AI models.

Transparent Data Handling

Challenge: Ethical AI deployment necessitates addressing bias, fairness, and transparency.

Solution: Employ responsible AI techniques to minimize bias in training data and algorithms. This will promote ethical AI practices.

In The Product Experience podcast, Miku Jha, the Director for AI and ML at Google Cloud,  emphasizes that responsible AI should be integrated into the foundation of AI-powered intelligent model development from day one, not just as a final checklist item.

Regulatory Compliance

Challenge: Different regulations apply to different industries. This makes it challenging for AI models to comply with diverse legal, ethical, and data protection laws.

Solution: Ensure your AI model conforms to applicable industry standards and data protection laws, such as GDPR, HIPAA, and SOC 2. Integrate compliance checks throughout the AI lifecycle.

Integration Difficulties

Challenge: Integrating AI with legacy enterprise software can be challenging.

Solution: Use modular, API-first architectures and middleware solutions to enable smoother integration with existing workflows and technologies.

Data Quality and Quantity

Challenge: High-quality, substantial datasets are pivotal for effective AI training. However, finding and curating them remains a significant challenge.

Solution: Improve data collection pipelines, apply robust data-cleaning techniques, and invest in data augmentation strategies to enhance model performance.

Infrastructure Scalability and Flexibility

Challenge: Enterprise AI models require high computing power and adaptable systems to support growth and evolving needs. However, designing AI systems that can scale with your business growth is challenging.

Solution:  Invest in flexible, cloud-native infrastructure like AWS, Azure, and Google Cloud and adopt microservices architectures to manage training, deployment, and long-term scalability.

Miku Jia highlighted in her interview that while building an AI model is a milestone, the real complexity lies in scaling and maintaining its effectiveness in dynamic production environments.

Generative AI Development and Implementation

Challenge: Generative AI has become an important trend as AI technology progresses. However, developing generative AI models poses significant challenges due to their complexity and the high level of creativity they require. These models need extensive and diverse datasets to learn effectively and can be prone to biases if not carefully managed.

Solution: To tackle these challenges, it is vital to employ rigorous data validation, regular model auditing, and adaptive learning approaches to mitigate biases and ensure the ethical deployment of generative AI. Using robust computational infrastructure and advanced neural network architectures can also aid in handling the intensive demands of training generative models.

Miku Jia lists four critical factors to successful generative AI deployment: selecting the right platform, leveraging unique data, ensuring enterprise readiness, and establishing responsible AI practices.

AI Model Development Mistakes and How to Avoid Them

Developing intelligent AI model development solutions can be complex, and several challenges can derail the process. To ensure your AI project is successful, it is crucial to stay informed about the best AI development practices and avoid the common mistakes, which are as follows:

Misaligned Business Goals

AI models must align with your organization’s strategic objectives. Failure to define clear business goals can lead to irrelevant or ineffective models that don’t deliver real value.

Poor Data Quality

Don’t rely on poor-quality data for AI model development, as it can lead to inaccurate or unreliable predictions. Invest time in data cleaning, preprocessing, and validation to achieve meaningful insights.

Overfitting/Underfitting

Building a model that either overlearns from the training data (overfitting) or fails to learn enough (underfitting) can derail model performance. Thus, striking the right balance between overfitting and underfitting is critical to achieve the best performance.

Ignoring Ethical Considerations

Implement ethical AI practices to ensure the model’s decisions are unbiased and comply with regulatory standards. Failing to address moral concerns in AI models can lead to unintended consequences and user backlash.

Insufficient Testing and Validation

Skipping or rushing through the testing phase can result in deploying a flawed AI model. Rigorous testing ensures the model behaves as expected under diverse conditions.

Inadequate Model Explainability

Use explainable AI in the development phase. Lack of interpretability can undermine trust in the model’s predictions, particularly in critical sectors like healthcare and finance.

Lack of Model Monitoring

Once an AI model is deployed, it needs continuous monitoring and updating to maintain its accuracy. Failure to track model performance can result in outdated, biased, or ineffective predictions.

Related Article: Unveiling Practical Applications of Retrieval Augmentation Generation (RAG) in AI Development

Cost of AI Model Development

There is no predefined rule to answer the exact cost to build an AI model. However, AI model development costs typically range between $40,000 and $400,000 or more. This cost estimate varies depending on multiple variables such as data complexity, tech stack selection, complexity of the model, and so on.

Here is a detailed breakdown of the core components that directly influence AI model development costs and timeline:

Build AI Models With Appinventiv

Developing an intelligent AI model is a complex task that requires meticulous planning, clean and scalable data pipelines, deep domain expertise, and thoughtful execution. At Appinventiv, we combine all of this, offering intelligent AI model development services that align precisely with your business goals.

Our skilled team of 1600+ tech experts knows how crucial it is to build a data-driven culture, define business objectives, choose the right tech stack, and curate high-quality datasets to develop scalable AI models.

As a premium artificial intelligence development company, we have done it for many global clients. Let’s get a glimpse of a few of them to get a better understanding of our unparalleled capabilities in AI model development.

• Mudra – We built an AI-driven wealth management platform that delivers personalized investment insights and simplifies portfolio management for millennials.

• Gurushala – Appinventiv partnered with Gurushala to build an AI-based learning platform. This personalizes educational content for students and helps teachers deliver data-driven, engaging lessons.
• Chat & More – We engineered a secure AI messaging platform that helps users generate intuitive stickers, craft personalized greetings, utilize an AI chatbot, and provide intelligent replies.
• Vyrb – Our AI experts developed an AI-powered voice assistant app. The platform enables seamless messaging and content sharing on the go, all through Bluetooth wearables such as smart glasses.

• Tootle – We developed Tootle, an AI-powered application that provides instant answers to general queries about a location and facts, not just by text, but also by speech.
• HouseEazy — Our AI developers created a property discovery platform that automates lead qualification and price prediction. It uses key parameters like location, bedroom/bathroom count, and property features to match buyers with the most relevant listings.

Contact us now or hire artificial intelligence model developers to build an AI model for your enterprise that elevates growth, innovation, efficiency, and your digital transformation journey.

FAQs

Q. What is the impact of AI on enterprises?

A. The impact of AI on enterprises is wide-ranging and significant:

Enhanced Customer Experience: AI enables personalized interactions by delivering tailored recommendations and responsive support. This significantly improves customer satisfaction and engagement.

• Increased Productivity: AI automates monotonous processes, streamlining operations and freeing up human resources for strategic actions.
• Making Informed Decisions: AI analyzes enormous data sets to provide insights that help people make precise, data-driven decisions about many different business-related issues.
• Predictive Analytics: AI can identify trends and use that information to better allocate resources, manage inventories, and plan ahead.
• Innovation: As a result of patterns and opportunities that AI identifies, business can create new strategies, products, and services.

Q. How does an intelligent AI model work for enterprises?

A. An intelligent AI model for enterprises analyzes various data sets using cutting-edge algorithms and machine learning. It learns from historical data trends, correlations, and insights throughout training. After training, it is incorporated into business operations, automating processes, forecasting results, and making data-driven suggestions. By ensuring accuracy and relevance through ongoing monitoring and feedback, numerous enterprise areas can benefit from wiser decisions, improved processes, and innovation.

Q. How to create your own AI models?

A. When looking to create AI models, you need to follow a series of strategic steps. Here is a concise roadmap that will help you get the answer to how to develop an AI model:

• Define the problem
• Gather and preprocess data
• Select the appropriate algorithm
• Train the model
• Evaluate and fine-tune the model
• Test the model
• Deploy the model
• Monitor and maintain the model

To gain an in-depth understanding of how to build an AI model, please refer to the above blog.

Q. What is an AI model?

A. An AI model is a computational framework designed to learn patterns from data and make predictions or decisions based on that learning. It uses algorithms and mathematical structures to analyze input data, recognize patterns, and generate outputs.

AI models can be trained on various types of data, including text, images, and numerical values, to perform tasks such as classification, regression, clustering, and more.

Q. What are some common types of AI models?

A. Some of the most popular types of AI models include:

• Logistic regression AI model
• Linear regression model
• Decision trees AI model
• Deep learning Models
• Generative AI Models
• Random forest model
• K-nearest neighbor model
• Naive Bayes model

These are some different AI models you can opt for when considering how to create an AI model.