The honest answer is: it depends. But "it depends" isn't useful, so here's what you're actually looking at — broken down by what you're building and who's building it.
TL;DR
- Prototype: $8K–$25K, 2–4 weeks. Production MVP: $25K–$80K, 3–8 weeks. Enterprise platform: $100K+, measured in quarters.
- Fixed-price boutique agencies deliver the best ROI for $1M–$15M businesses — specialized, fast, on the hook for scope.
- The biggest cost drivers: model API spend at scale, RAG pipeline complexity, and integration surface area.
- A 3-week Pilot Sprint ($14,900) ships faster and cheaper than one month of a US AI engineer's salary ($15K/mo).
- Delaying 6 months to hire in-house typically costs $90–120K before you see a single output.
The three buckets
Every AI development engagement falls into one of three categories — and the pricing differs by 10x between them.
1. A prototype / proof of concept
You want to validate that the AI approach actually works before committing budget. A working prototype — RAG system, AI agent, LLM-powered feature — should take 2–4 weeks and cost $8,000–$25,000 with a focused boutique team.
What you get: a working demo, architecture decision, and a clear picture of what full build costs. What you don't get: production-ready code, error handling, auth, or billing.
2. A production-ready MVP
This is a full working product — multi-tenant if needed, with auth, proper prompt engineering, monitoring, and the UI to use it. This is the most common engagement we see.
Timeline: 3–8 weeks. Cost: $25,000–$80,000.
The wide range is real. A single-tenant internal tool is $25K. A multi-tenant SaaS with Stripe, SSO, and a polished UI is $80K.
3. An enterprise AI platform
Custom model training, complex multi-agent orchestration, compliance requirements, existing systems integration. These engagements start at $100K and go up from there, with timelines measured in quarters.
The comparison table
| Option | Cost | Timeline | Risk |
|---|---|---|---|
| In-house AI engineer (US) | $150–200K/year salary + 3–6 months to hire | Months before first output | High — wrong hire = $300K wasted |
| Large agency | $200–400K project cost | 6–12 months | High — enterprise overhead, slow cycles |
| Boutique AI agency | $25–80K fixed price | 3–8 weeks | Low — specialized, fast, fixed scope |
| Offshore dev team | $8–30K | 3–6 months | High — LLM expertise rarely deep |
The boutique agency column is where we live. Fixed price, focused scope, fast cycles.
What drives the cost up
Model choice is the first variable. GPT-4o API calls at scale cost real money. A system with 10K daily users hitting GPT-4o for every request can run $5–15K/month in API costs alone. Architecture decisions — caching, RAG instead of full context, model routing — can cut this by 70%.
RAG complexity is the second. A basic vector search over 1,000 documents is a weekend project. A production RAG system with reranking, citation tracking, hybrid search, and guardrails is a 3-week build.
Evaluation infrastructure is often underestimated. Getting LLM outputs that are consistently good requires eval pipelines. Teams that skip this ship fast and then spend 6 months fixing quality issues.
Integration surface area is the last. Connecting to your CRM, your internal database, your Slack, your support inbox all adds scope. Each integration adds 1–3 days.
Our pricing: Metageeks fixed-price sprints
We don't bill hourly. Hourly billing creates the wrong incentives — slower work costs you more.
Our model:
- Discovery Sprint — 1 week, $2,500. Architecture, stack decisions, scope definition, working prototype of the core AI feature.
- Pilot Sprint — 3 weeks, $14,900. Production-ready MVP. Deployed, monitored, documented.
- Scale Sprint — 3 weeks, $19,900. Added features, performance optimization, additional integrations.
Most clients start with a Discovery Sprint. If the architecture is clear going in, we skip straight to Pilot.
The real cost of waiting
A US AI engineer costs $180K/year fully loaded. That's $15K/month. They take 3–6 months to hire and 2 months to onboard. By the time they ship something, you've spent $90–120K and 5–8 months.
Our Pilot Sprint ships in 3 weeks for $14,900. Even accounting for maintenance and iteration, you've validated your entire AI approach for less than one month of engineer salary — and shipped something real.
The ROI question isn't "can we afford this?" It's "what does delaying 6 months cost us?"
How to scope your project
If you're trying to estimate before talking to anyone, here's a rough formula:
- Core AI feature complexity — 1–3 points (1 = chat over docs, 2 = multi-step agent, 3 = custom model)
- Integration count — each external system adds 0.5 points
- Multi-tenancy — add 1 point if yes
- Auth/billing/SSO — add 0.5–1 point
Score of 2: $15–25K. Score of 4: $35–55K. Score of 6+: $60K+.
This is rough. A 30-minute call will give you a real number. We've done this enough to quote accurately on first conversation.
AI development in 2026 doesn't have to be expensive or slow if you find a team with repeatable processes — stack decisions, prompting patterns, eval pipelines — that compresses 6-month builds into 6-week ones.
Get a fixed-price quote for your AI project →
Written by
Pankaj Kumar
Founder · Metageeks Technologies
Metageeks builds production-ready AI products for $1M–$15M companies — shipped in fixed-price sprints, not open-ended retainers. We write about what actually works in the field.
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