The verdict in three sentences
In 2026, an applied AI assistant wired to your own data (support, quotes, document search) is built in two stages: a POC at 10 000-25 000 USD, then a production RAG deployment at 30 000-80 000 USD. The monthly run (tokens or hosted model) ranges from 250 to 1 800 USD. The real challenge is not the model but the quality of your data and compliance: controlled hosting and access rights make the difference between a gadget and a production tool.
POC then production: two distinct budgets
Never pay for a full production before proving value on a narrow scope. 2026 orders of magnitude.
| Phase | Cost (USD) | Duration | Deliverable |
|---|---|---|---|
| Scoping & POC | 10 000 - 25 000 | 3 - 6 weeks | Assistant on 1 use case, test data |
| Production RAG | 30 000 - 55 000 | 6 - 12 weeks | Ingestion, security, interface, monitoring |
| Advanced production | 55 000 - 80 000 | 10 - 16 weeks | Multi-source, fine-grained rights, audit |
The POC validates three things: the data is usable, answers are reliable, adoption happens. If it fails, you save 50 000 USD.
Managed API or self-hosted model
Run cost depends mostly on this choice. Estimate for an SME usage of a few thousand queries per month.
| Criterion | Managed API (cloud) | Self-hosted model |
|---|---|---|
| Monthly cost | 250 - 1 200 USD | 900 - 1 800 USD |
| Setup | Fast, included in project | +12 000-25 000 USD |
| Data control | Contractual (choose region) | Total, on your servers |
| Best for | Getting started, mid volumes | Ultra-sensitive data |
For most SMEs, a managed API with regional hosting and processing offers the best cost/compliance ratio. Self-hosting is only justified for regulated data or very high volumes that amortise the extra infrastructure cost.
Mini case study
Wei Lin, COO of a 35-person services SME in Singapore, sees her support team spend 20 hours/week searching a scattered knowledge base. She runs a POC at 18 000 USD, successful, then a production RAG at 48 000 USD with 700 USD/month run. Result: search time falls 40 %, i.e. ~8 hours/week returned to the team (about 400 hours/year at 35 USD/h, ~14 000 USD/year). Build payback in a little over 3 years on time savings alone, but accelerated by higher customer satisfaction and faster response times.
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FAQ
Will my data be used to train a public model?
No, if the contract explicitly excludes it and hosting is in your chosen region. Lock this at scoping: choose offers with no retention and regional processing.
Why start with a POC rather than production?
Because 30 to 40 % of AI projects fail on data quality, not the model. A POC at 10 000-25 000 USD reveals this fast and avoids committing 50 000 USD blind.
Can the assistant make up answers?
A well-built RAG assistant cites its sources and says "I don't know" outside its base. We measure the hallucination rate during the POC and only go to production above a validated reliability threshold.
What does the run cost once in production?
Between 250 and 1 800 USD/month depending on query volume and the API vs self-hosted choice. This cost is proportional to real usage, so predictable and controllable.
Do we need to replace our current tools?
No. The assistant plugs into what exists (documents, CRM, support base) and shows up inside your tools. We avoid the "big bang": we add a layer, we don't replace.
Let's scope your project. Describe the priority use case (support, quotes, doc search) and your confidentiality constraints; POC at 10 000-25 000 USD to validate before any production commitment. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
