Estimate the work involved
What drives the cost of an AI implementation?
AI implementation cost depends on the work the system must do, the information it can use and the systems it must connect to. A useful estimate separates one-time preparation and delivery from ongoing usage, review and maintenance. Define one workflow before trying to price a wider transformation.
Estimate setup and ongoing work separately, with visible assumptions for information, integrations, review and usage.
Define the useful job before asking for a price
“An AI system for the business” can include document search, reporting, client work and external actions. Those are different projects. Write the start and finish of the first workflow, its users, source systems and approval requirements.
Include the difficult variation. Said’s reporting account explains why one report is an incomplete basis for an estimate: examining all the client requirements reveals different routes and software needs.
Agree what the estimate covers and what requires a later decision. For our delivery approach, the first implementation concerns one agreed workflow, with a useful implementation targeted within 90 days of implementation starting. Wider work needs additional scoped projects.
Separate the main setup cost drivers
| Driver | What affects the work |
|---|---|
| Process understanding | Number of routes, handovers and unresolved requirements. |
| Information preparation | Missing sources, inconsistent records, permissions and review ownership. |
| Integration | Available APIs, authentication, field mapping, retries and existing systems. |
| Workflow build | Fixed steps, model-selected choices, review screens and exception handling. |
| Evaluation | Representative test cases, evidence checks and actions that need controlled testing. |
| Rollout | Training, support, monitoring and the handover to an ongoing owner. |
Ask which assumptions have been checked. An accessible source with consistent identifiers is different from scattered client records that need expert interpretation. Identify unknowns and the small investigation needed to resolve them.
List internal work as well as supplier work. Account owners may need to confirm requirements, approve records and review trial outputs. That time is part of the investment even if it does not appear on an external invoice.
Model ongoing usage and human work
Estimate jobs per period, model calls per job and the amount of information processed. Use the current provider’s actual charging units. Some costs depend on text volume, tool usage or infrastructure rather than a simple price per request.
Monthly running cost = model and tool usage + hosting + support + human review + maintenance Monthly review hours = jobs per month × average review minutes ÷ 60
Include correction and exception work in review estimates. Test the average on representative jobs, and show how the total changes when volume or review time rises. A model that drafts quickly can still create a costly review process.
Assign maintenance to someone. Sources, prompts, permissions, integrations and supplier behaviour can change. Budget for relevant retesting and support, and state how those responsibilities will be handled.
See how a review assumption changes the estimate
| Jobs per month | Review minutes per job | Review hours |
|---|---|---|
| 100 | 6 | 10 |
| 100 | 12 | 20 |
| 200 | 6 | 20 |
These invented values show the arithmetic only. They are not a benchmark, a service price or an estimate of typical client work. Multiply the observed review hours by the relevant internal cost if you need a financial model.
Keep benefits in a separate calculation so the estimate remains inspectable. The ROI guide distinguishes released capacity from realised financial value, and the business-case template helps make the investment decision.
Prepare an estimate with visible assumptions
Worked example
Scoping a reporting preparation estimate
Invented teaching example. No client outcome is claimed.
FIRST WORKFLOW
Prepare one agreed report route with sources and a human review step.
SETUP
Confirm client requirements, reconcile metric definitions and test source connections.
RUNNING
Estimate monthly reports, usage, review time and source maintenance separately.
UNKNOWN
A second client variation needs investigation before it is included in the estimate.
DECISION
Use actual quoted and internal costs; no standard price or financial return is assumed.
Further reading
Written by Said Lopez, founder of LeverageAI and author of Lean AI. Our guides draw on the method in the book and our work with clients.