The AI development process - a comprehensive guide

In today's business, AI companies are in a race to create bots, AI solutions, or applications of NLP that will make your head spin. But how do they do it?

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It seems like everyone today is diving into the exciting world of Artificial Intelligence. Are you ready to do the same?

In today's business landscape, AI companies are in a race to create groundbreaking bots, AI solutions, or applications of NLP that will make your head spin. But how do they do it?

The secret lies in the AI development process, which involves defining the problem, understanding data, training data, designing and creating an AI system, testing performance, evaluating the model, and finally, deployment.

Fear not, as we'll guide you through the basic steps of this process. By following our lead, you'll be able to create successful AI applications that are as unique as you are. Let’s go!

What is AI development?

AI development is the fascinating art of teaching machines to think, learn, and perform tasks that usually require human intelligence without direct human intervention. It's like playing the role of a magician and designing a set of tricks for a robot to master.

It involves designing algorithms, data models, and architectures that enable machines to mimic human cognitive abilities, such as speech recognition, image analysis, and decision-making.

Today, AI development can help companies create exciting applications of NLP, such as chatbots that mimic human conversation or voice assistants that manage your daily tasks.

The goal is to make machines more intelligent and efficient, ultimately enabling them to assist us in solving complex problems and improving our daily lives.

But it is no easy feat! AI development requires a lot of data analysis, training, and experimentation. Yet, the reward is definitely worth it, as successful AI applications have the potential to change the way we live and work.

AI development process: the basic steps

To successfully create intelligent systems, AI development follows a set of basic steps that are critical to achieving optimal results. Here they are.

AI development process
AI development process

Defining the problem

The first and most crucial step in the AI development process involves identifying the specific challenge or opportunity that your AI system will address, such as improving customer service, increasing efficiency, or solving complex problems.

The process of defining the problem also requires a thorough understanding of the domain in which the AI application will operate, as well as the needs and preferences of the end users.

Add here the collaboration between business stakeholders, domain experts, and data scientists to ensure that the problem is well-defined, achievable, and aligned with the organization's strategic goals.

Remember that the more precisely the problem is defined, the more effective the subsequent steps of data gathering, model creation, and testing will be.

Understanding data

​​The second step is understanding data, which involves gathering and analyzing relevant data to create an accurate and comprehensive training dataset. It also includes the process of identifying data sources, cleaning and preprocessing data, and selecting appropriate features that are relevant to the problem at hand.

This step aims to ensure that you data is of high quality, diverse, and representative of the problem domain. Data scientists may use statistical methods, visualization tools, and exploratory data analysis to gain insights into the data and identify patterns or anomalies.

Understanding the data is critical if you want to build accurate models and make informed decisions throughout your AI development process. This can also help you create more effective and robust models that are capable of addressing complex challenges and delivering valuable insights.

Training data

The next step in the AI development process is training data where you use the data collected in the previous step to train your AI model. This step requires choosing the appropriate algorithm and architecture for the model, which will depend on the problem domain and the type of data being used.

During the training, the model learns to recognize patterns and make predictions based on the input data. The quality and quantity of your training data are critical to your model’s success, as they directly impact the model's accuracy and generalizability.

You may use techniques such as data augmentation, regularization, and hyperparameter tuning to optimize the training process and improve the model’s performance, and once the model is trained, it can be evaluated and refined in the following steps to ensure that it meets your desired performance criteria.

Designing and creating an AI system

The fourth step in the AI development process is designing and creating an AI system, which involves integrating the trained model into a functional system that can be used to solve the problem at hand.

This step requires your team to have expertise in software engineering, as the model must be integrated with the necessary hardware, software, and user interfaces to create a working AI application.

You may have to develop APIs, design user interfaces, and integrate the AI model with other systems and databases.

Additionally, this step may require the use of cloud-based platforms or other infrastructure to enable the deployment and scalability of the AI application.

Testing performance and evaluating the model

Once the AI system is created, the next step in the AI development process is testing the performance and evaluating the model. During this step, you have to use various testing methods to evaluate the accuracy, speed, and reliability of your model.

You may use techniques such as cross-validation, A/B testing, and confusion matrices to measure the performance of your model and identify areas for improvement.

This step may also involve testing the AI system in a real-world environment to assess its performance under different conditions and user scenarios.

The evaluation of your model is critical if you want to ensure that it meets your desired criteria and user requirements.

By identifying and addressing any issues with the model during the testing and evaluation phase, you can improve the accuracy and reliability of the system and ultimately deliver a more effective and valuable AI application.

Product UX Discovery Kit


At last, the final step in the AI development process is deployment, which involves making the AI system available to end users. This step requires careful planning and execution to ensure that the system is deployed in a secure and reliable manner.

The deployment process may involve installing the AI application on local servers or cloud-based platforms, configuring security settings, and integrating the system with other applications and databases.

Once the system is deployed, it will be necessary to monitor its performance and make updates or modifications for it to continue to meet the needs of your users. The deployment critical step, as it enables end-users to benefit from the insights and capabilities provided by your system.

Generally,bBy ensuring that the deployment is executed properly, AI companies can deliver valuable applications that improve productivity, efficiency, and decision-making across a wide range of industries and applications of NLP.

Harness the power of your AI solution

In conclusion, AI development is a complex and iterative process that requires expertise in a variety of fields, from data science and machine learning to software engineering and user experience design.

By following the basic steps of defining the problem, understanding data, training data, designing and creating an AI system, testing performance and evaluating the model, and deploying the system, AI companies can harness the power of their AI solutions to drive meaningful business outcomes and address real-world challenges.

With the rapid evolution of AI technology and the growing demand for applications of NLP, it has never been more essential to invest in AI development and leverage the power of these powerful tools to drive innovation and growth. And, what’s important is that Merge can help you with that!


Serhii Hyliuk

Head of Growth and Customer Success

I'm interested in design, new tech, fashion, exploring new places and languages. My mission is to make our clients happy.

I'm interested in design, new tech, fashion, exploring new places and languages. My mission is to make our clients happy.


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