How to Make AI Software: A Guide to Software Development 

Published:April 17, 2025

Reading Time: 7 minutes

Developing complex AI software is no easy feat. It requires an interweave of high-level skills in machine learning, programming, and data science, which can be difficult and expensive to acquire or hire. Also, software development is not a one-stop process. It has a constant iterative process that makes it intensive and time-consuming.

Thankfully, going from an idea to a fully functioning AI software is what this guide is all about. In this article, we’ll walk you through how to build AI software from start to finish. We’ll also cover common challenges and how to overcome them.

Why Make AI Software?

A modern robot (AI Software)

1. AI software can be programmed to take over mundane, repetitive tasks. Therefore, the higher-level tasks can be assigned to humans. 

2. Large amounts of data can be analyzed by AI software for better decision-making. AI is good at identifying trends, patterns, and even predictions from data. 

3. To solve complex problems, AI is built on the premise of mimicking human intelligence. Therefore, AI software can be used to tackle real-life problems. It’s like having a combination of human experts to address issues. 

Also read: Eden AI | The Full Stack AI Platform for Developers

How To Make AI Software

1. Define the Problem or Purpose 

Every AI software should be created to solve a problem. It should have a clearly defined purpose. This allows you to concentrate and target your efforts at alleviating the issue. The first way to this is by asking the obvious: why exactly am I doing what I want to do? Until this question is answered specifically and measurably, you cannot proceed. 

AI is well capable of performing tasks that require pattern recognition, automation, and prediction. Therefore, your purpose should align with one or all of those capabilities. 

2. Choose the Data Type

A dataset on a computer screen (AI software)

AI models are only as good as the dataset they are trained on. These models rely on data to learn and understand how things work. Data has two specific types: structured (spreadsheets) and unstructured data (text and images). 

This step is crucial because it indicates how the data should be preprocessed. It also dictates which algorithms can be applied and how the model interprets the data. 

3. Choose an AI Method

Once you’ve clearly defined the problem, the next step is selecting the most suitable AI method to address it. This decision isn’t one-size-fits-all; different AI techniques excel at solving different types of problems. It all depends on the nature of the data and the desired outcome.

  • Machine Learning (ML)

Best for: Predictive analytics with structured data

Machine learning is the most appropriate method for working with structured data. Data represented in tables, spreadsheets, and applied to machine learning can be used for a wide variety of tasks. The gleaned information can be used to make predictions about parameters like customer churn, forecast sales, and fraud detection. 

  • Deep Learning

Best For: Complex, high-dimensional data

If datasets are unstructured (images, video, audio, or natural language), deep learning is the most ideal option. The deep learning technique uses artificial neural networks with many layers, called deep structures, to understand patterns between seemingly dissimilar data. 

Common Deep Learning Architectures

Convolutional Neural Networks (CNNs)For image data
Recurrent neural networks and LSTMSequential data 
Transformers For text and vision data
  • Natural Language Processing (NLP)

Best For: Text 

NLP is a data processing technique that lets machines understand, interpret and consequently generate human language. It is suited to a vast array of text: human conversation, customer reviews, and more. One popular NLP model is GPT. 

  • Computer Vision

Best For: Visual Inputs

An AI software intended to handle data from images and video should use computer vision. It detects and analyzes objects in images and videos for optimal processing. 

How to Decide Which Method to Use

  • Ask “What kind of data am I working with?”
  • Know the outcome you are looking for. Is it classification, prediction, summarization, or detection?
  • What’s the complexity and size of the dataset?
  • Ask “Do I need real-time results, or is offline processing acceptable?”

These questions will serve one purpose: they will align the technique with your intended solution, data, and resources. 

4. Gather and Prepare the Data

You need to divide your data into two categories: training data and testing/validation data. Training data will serve as the learning ground for your AI software, while the testing/validation data will act as an independent benchmark. It will test how the AI model performs with new data. The validation data also helps to avoid overfitting, a scenario in which a model learns the training data too well. It ends up leading to excellent performance on old data but poor generalization to new data. 

Sources of data

  • Internal company databases
  • Public datasets (Kaggle, UCI, Google Dataset Search)
  • Web scraping
  • APIs (Twitter, Google Maps, etc.)

Data Preprocessing

  • Remove duplicates or errors
  • Handle missing values
  • Normalize or scale data
  • Label the data (for supervised learning)
  • Tokenize text (for NLP)
  • Resize or augment images (for computer vision)

5. Choose the AI Model 

A great alternative to steps 2,3, and 4 is to choose an existing AI model. Some tech companies, like DeepSeek, have publicly available models termed “open source AI models”. However, not all models are compatible with the intended software. A good place to begin is to ask, “What kind of AI functionality does your software need?” Here is a general guide for answering this question: 

FunctionalityExample Models / Services
Text GenerationOpenAI (GPT), Cohere, Anthropic
Image RecognitionGoogle Vision AI, Amazon Rekognition, YOLO
Speech-to-TextWhisper (OpenAI), Google Speech API
Text-to-SpeechAmazon Polly, ElevenLabs, Google TTS
Sentiment AnalysisHuggingFace models, TextBlob
ChatbotGPT-4, Rasa, Dialogflow

The next step after deciding on an AI model is to evaluate the accuracy, speed, ease of integration, pricing, and licensing. 

After this, you would decide on your integration approach. There are primarily two main ways: via an API and running it locally. Both approaches have respective pros and cons:

API integration 

This is best for Saas and chatbots. It is also the easier approach. API integrations work by creating a structured communication channel between two separate software systems (client and server). The client sends requests to the server, and then the server processes the request and sends back a response. 

With an API integration, there is no need to worry about infrastructure or updates. It is also easy to scale with cloud access. The major downside to this is that there could be limits on use. 

Run It Locally (Downloaded Model)

A local download favors offline apps, lower latency, or sensitive data scenarios. This is because when you run an AI model locally, the entire process of sending task requests and generating responses happens directly on the computer hardware. Although the risks of privacy breaches and recurring costs are eliminated, this method has a complex setup. 

Also read: How to Run DeepSeek Locally: A Step-by-Step Guide

6. Plug the Model Into the Software

This is the step that requires building a communication bridge within the software’s backend. This communication bridge will serve as an intermediary for sending data to the AI model and receiving the processed results back. 

The interface is typically built by code that will convert the input data from the software into a format the AI model understands. This same interface will be responsible for decoding the generated output into a form the software understands. 

An Example

If you’re building a React web app with a Python backend:

  • React UI collects user input (e.g., text or file).
  • Sends it to your Python backend via an API endpoint (/predict).
  • Python backend calls the pre-trained model (via API or locally).
  • Returns the result to the frontend.

Note: You may need several iterative cycles to get the AI software fully functional. 

Challenges in AI Software Development

1. Data Challenges 

If building an AI model from scratch, there could be data-related challenges. It could be expensive to obtain, label, and organize, there could be privacy issues, and even biases. If any of these scenarios play out, building a high-performing AI model will be a formidable feat.  

2. Model-Related Challenges

Working with pre-made AI models opens new challenges. There’s the challenge of choosing the best match, underfitting and overfitted, and even the black box problem. In making choices, finding the best match is often a matter of trial and error. Underfitted and overfitting issues may lead to a dysfunctional software that fails to adapt to new scenarios or even completely miss patterns. There is also a black box problem that could make you question the AI’s decisions. 

3. Integration of Real-time Data

In an AI software created offline, integrating real-time data can be daunting. This issue lies in closing the gap between the static datasets and the dynamic nature of continuous, real-world data. The offline environment is highly controlled and ordered, which is against the unstructured, chaotic state of live data. 

The Bottom Line

Building AI software is about weaving intelligence into an entire product experience. From sourcing the right data and selecting the best model to deploying it safely and handling real-time predictions, each step plays a critical role in the success of your application.

The journey can be complex, but with the right strategy and tools, it’s completely achievable. Whether you’re building a chatbot, a recommendation engine, or an AI-powered business tool, the key is to start simple, test often, and think long-term. With this guide, you now have a blueprint to go from concept to working AI software — one that’s not only smart but stable, secure, and scalable.

FAQs

1. Can You Build Your Own AI?

Yes, you can build your own AI using tools like Python, TensorFlow, or PyTorch. You’ll need data for the AI to learn from, and a clear goal like image recognition, language processing, or predictions. With online courses, open-source libraries, and cloud platforms, building AI is a huge possibility.

2. How Can I Make AI Software?

To make AI software, start by identifying the problem you want AI to solve. Then collect and prepare data, choose a model (or use a pre-trained one), and train it. After that, integrate the AI model into your software using APIs or backend code. Finally, test, deploy, and monitor the software to keep it working smoothly.

3. How Is AI Software Created?

AI software is created through several steps: defining the problem, gathering data, training a model, and embedding that model into a software application. Developers use programming languages like Python and tools like cloud platforms, machine learning libraries, and APIs to bring everything together.

4. How Do I Start an AI Software Company?

To start an AI software company, begin by identifying a market problem AI can solve. Validate your idea, build a minimum viable product (MVP) with basic AI features, and test it with real users. You’ll also need a skilled team, a business plan, and possibly funding. Focus on solving real problems and scaling smartly.

Lolade

Contributor & AI Expert