Determining the realistic investment required for an enterprise AI initiative requires breaking down costs into four core categories: scoping & architecture, initial software development, ongoing cloud infrastructure, and LLM inference API costs.
Typical AI Budget Allocations
- **Proof of Concept (PoC) / Validation**: $15,000 to $30,000 (3–4 weeks)
- **Production Enterprise RAG System**: $35,000 to $75,000 (6–10 weeks)
- **Autonomous AI Agent Workflow**: $40,000 to $90,000 (8–12 weeks)
- **Full Custom AI SaaS Product MVP**: $50,000 to $120,000 (8–14 weeks)
Factors Influencing Cost
- **Data Complexity & Cleanliness**: Preprocessing unstructured PDF reports or legacy database schemas requires custom parsing logic.
- **Security & Compliance Requirements**: Dedicated VPC deployments, custom encryption, and RBAC add compliance overhead.
- **Model Selection & Inference Volume**: Self-hosted open models (e.g., Llama 3) carry fixed server costs, whereas proprietary APIs scale per token.