AI products

AI SaaS development cost: what an MVP actually runs

The band, where the money goes inside it, and the four things that quietly double a quote.

Short answer. A full AI SaaS MVP — custom pipeline, frontend, backend, production infrastructure — runs $40,000 to $120,000 and typically ships in 8 to 12 weeks. Adding an LLM feature to a product that already exists is a much smaller job: $15,000 to $30,000 over 2 to 4 weeks. The spread inside the larger band is almost never about which model you use. It is about how ready your data is and how many external systems the product has to talk to, which is why an honest estimate follows a look at your corpus rather than a look at your feature list.

Where the money actually goes

The intuition most teams start with is that an AI product is mostly AI. In delivery it usually is not. A representative split for an MVP in the band above:

WorkTypical shareWhat it covers
Data preparation and retrieval Largest single block Ingestion, cleaning, chunking, embedding, permissioning. Grows fastest when the source data is messy
Product surface Substantial Frontend, auth, multi-tenancy, billing, admin. An AI SaaS is still a SaaS and needs all of it
Integrations Highly variable ERP, CRM, identity, storage, whatever the answer has to reach. The main driver of variance
The AI pipeline itself Smaller than expected Prompting, orchestration, tool use, model routing
Evaluation and quality Small but non-optional Scored test sets, hallucination checks, regression detection, monitoring
Infrastructure and deployment Small CI/CD, observability, cost alerting, model versioning

The row worth defending in a budget conversation is the last-but-one. Evaluation has no demo attached to it, so it is the first thing cut — and it is the only thing standing between you and finding out from a customer that quality regressed three weeks ago.

The four things that inflate a quote

1. Data that is not what you think it is

The single most common cause of an AI project running over. Corpus quality decides the timeline more often than any architectural decision does, and almost nobody knows the true state of their own documents until someone tries to index them. Before committing to a scope, take a genuine random sample — not the tidy examples — and check formats, languages, duplication, and whether permissions can even be represented.

2. Integration count

Two integrations and eight integrations are different projects at the same feature count. Each external system brings its own auth model, rate limits, failure modes and undocumented behaviour, and none of that is visible from the requirements document.

3. Compliance scope arriving late

GDPR readiness is a design constraint, not a feature, and it is cheap when it is designed in and expensive when it is added. HIPAA-aligned architecture, data residency and audit logging are real additional scope. Discovering in week nine that the data cannot leave a jurisdiction is a schedule event, not a task.

4. Scope that is a demo rather than a product

An impressive prototype is days of work. The distance from prototype to something you can charge for — auth, tenancy, billing, error states, rate limiting, evaluation, support tooling — is where the budget goes. Both are legitimate things to build; the mistake is pricing one and expecting the other.

How to make the number smaller, honestly

  1. Cut integrations before you cut features. One integration done properly beats three done partially, and the saving is larger than the feature list suggests.
  2. Fix the data before the pipeline. Time spent making a corpus clean and permissioned pays back several times over in retrieval quality and in engineering hours.
  3. Start with retrieval, not training. Almost every product that thinks it needs a fine-tuned model needs retrieval — see RAG or fine-tuning for the test that tells you which you are looking at.
  4. Ship one workflow end to end. A narrow product that completes a real job is more valuable, and cheaper, than a broad one that half-completes several.

What a quote from us looks like

Managed delivery is quoted fixed-price after a discovery call, and the written scope comes back within 48 hours. The bands above are published on our pricing page alongside the rest, including what is deliberately not banded and why. For an example of what lands inside this range in practice — multilingual document processing, a custom retrieval architecture, ERP integration and an 87% reduction in manual processing — see the enterprise AI analytics case study.

Common questions

Three that come up in every scoping call about an AI product.

Because two projects with identical feature lists can differ threefold in effort depending on data readiness. Clean, structured, permissioned data means a retrieval pipeline in weeks. Scanned PDFs in four languages with no metadata means the data work is the project and the AI is the easy part. Integration count is the second driver: each external system carries its own auth, failure modes and edge cases.
Rarely, and less every year. Model choice affects your running cost per request, not your build cost, and swapping providers behind a well-designed abstraction is days of work rather than weeks. Teams that spend the first month choosing a model and the last month discovering their data is unusable have optimised the wrong variable.
Model API usage, cloud hosting, and evaluation upkeep. The first is usage-based and worth modelling before launch rather than after, because a feature that is cheap at a hundred users can be the largest line item at ten thousand. Evaluation upkeep is the one most often skipped: production quality drifts as your data and your users change, and without a scored test set you find out from customers rather than from a dashboard.

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