What Does an AI Project Actually Cost? A Transparent Guide for SMEs

Why We're Publishing This

Most AI consultancies treat pricing like a state secret. We think that's backwards. If you're an SME exploring AI, you deserve to know what you're getting into before you pick up the phone. Here's an honest breakdown of what AI projects actually cost in the UK market in 2025.

The Four Scales of AI Investment

£5,000 - £15,000: Discovery and Assessment

At this level, you're not building AI. You're figuring out whether you should.

What you get:

• AI readiness assessment across your organisation
• Data quality audit of your key systems
• Identification of 3-5 potential AI use cases
• Prioritised roadmap with honest ROI estimates
• A clear recommendation on whether to proceed

Who this is for: SMEs that know AI matters but don't know where to start. This is the most valuable investment most businesses can make, because it prevents you from spending £50k on the wrong project.

£25,000 - £50,000: Focused AI Implementation

This is where most SME AI projects sit. You're solving one specific business problem with a defined scope.

What you get:

• Detailed requirements engineering for a single AI use case
• Data preparation and pipeline work
• Model development or platform configuration
• Testing, validation, and deployment
• Basic monitoring and handover documentation

Examples: A chatbot for tier-1 customer enquiries. A document classification system for invoices. A demand forecasting model for inventory.

What you don't get at this price: Custom model training on large datasets, real-time processing, complex integrations with multiple legacy systems.

£50,000 - £100,000: Substantial AI Deployment

Multiple use cases, deeper integration, or more complex technical requirements.

What you get:

• Multi-phase project delivery
• Integration with existing systems
• Custom model development
• Staff training and change management
• Ongoing support period

Examples: A computer vision quality assurance system for manufacturing. An AI-powered scheduling and resource allocation platform. A comprehensive data platform with predictive analytics.

£100,000+: Enterprise-Grade Transformation

Full digital transformation with AI at its core. Typically involves multiple workstreams, organisational change, and long-term embedded support.

The Hidden Costs Nobody Mentions

Data Preparation: 40-60% of Your Budget

The single biggest cost in any AI project is getting your data ready. If your data is in spreadsheets, disconnected systems, or paper records, expect to spend more on data preparation than on the AI itself.

Ongoing Maintenance: 15-25% Annually

AI models degrade over time as your data and business environment change. Budget for ongoing monitoring, retraining, and maintenance. This is the cost most vendors conveniently forget to mention.

Change Management

The best AI system in the world is worthless if your team won't use it. Budget for training, communication, and the human side of adoption. This is often underestimated by 50% or more.

Integration Costs

Connecting AI systems to your existing tools and workflows is rarely straightforward. API development, data pipeline work, and testing all add up.

When AI is NOT Worth the Investment

We'll always tell you honestly if AI isn't the right answer. Here are the signs:

• Your process works fine manually - if it's not broken, don't automate it
• Your data is poor quality - fix the data first, consider AI second
• The ROI doesn't stack up - if the payback period exceeds 18 months, think twice
• A simpler solution exists - sometimes a well-designed spreadsheet or off-the-shelf software is the better answer
• You can't define the problem clearly - if you can't articulate what success looks like, you're not ready

Our Advice

Start small. The £5k-£15k discovery phase exists for a reason. It's far cheaper to discover that your data isn't ready or your use case doesn't stack up before you've committed £50k to a vendor.

And always, always get proper requirements written before you go to market. It's the single most effective way to control costs and ensure you get what you actually need.