The verdict in three sentences
Generative AI saves time only when it is wired to your internal data through a RAG, not a generic chatbot. A scoping-plus-POC budget of 7,000 to 22,000 USD is enough to validate two or three use cases in 4 to 10 weeks. Beyond that, the real cost is the recurring licence (20 to 60 USD per user/month) and change management, not development.
What an AI project really costs in 2026
In New York, budgets have stabilized. A targeted POC stays affordable; scaling is what commits you. 2026 ballpark:
| Item | 2026 range (USD) | Timeline |
|---|---|---|
| Use-case scoping workshop | 1,800 - 4,500 | 1 week |
| RAG POC on internal documents | 7,000 - 22,000 | 3 - 8 weeks |
| AI licences (per user/month) | 20 - 60 | recurring |
| Hosting + vectorization | 180 - 700/month | recurring |
| Team training (per session) | 900 - 2,000 | 1 day |
| Scaling (10-50 users) | 28,000 - 90,000 | 3 - 6 months |
RAG (Retrieval Augmented Generation) indexes your contracts, product sheets and procedures so the AI answers from your documents, with source citations. That is the difference between a gadget and a business tool.
Priority use cases and gains by function
Not every function is equal. Prioritize those with high volumes of repetitive text.
| Use case | Function | Estimated gain | Setup effort |
|---|---|---|---|
| RFP responses | Sales | 6 - 10 h/week | Medium |
| Product copy drafting | Marketing | 4 - 8 h/week | Low |
| Assisted tier-1 support | Customer service | 8 - 12 h/week | Medium |
| Meeting summaries | Leadership | 3 - 5 h/week | Low |
| Internal legal research | Legal | 5 - 9 h/week | High |
| Resume pre-screening | HR | 4 - 7 h/week | Medium |
Simple rule: launch no more than two use cases in the first quarter. Change management matters as much as the tech.
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Mini case study
Thomas runs a 28-person engineering SME in New York and targets two use cases: RFP responses and meeting summaries. Scoping plus RAG POC: 15,000 USD. Licences for 12 staff at 40 USD/month: 5,760 USD/year. Hosting: 4,200 USD/year. First-year cost: about 24,960 USD.
Gain: 8 employees save 6 h/week, or 48 h/week, roughly 2,100 h/year. Valued at 50 USD/loaded hour: 105,000 USD/year. Even counting only 40% net effective gain (42,000 USD), the project pays back in under 8 months.
FAQ
Do I need to train a custom model? No; in 90% of cases a RAG on an existing model is enough and costs ten times less than fine-tuning, which often exceeds 30,000 USD for marginal benefit.
Is my data exposed? With regional hosting and enterprise offers that do not reuse your data, you stay compliant. Budget 180 to 700 USD/month for dedicated infrastructure.
How fast is a POC live? Between 4 and 10 weeks depending on document volume. A first targeted use case often ships in 4 weeks.
What ROI is realistic? A gain of 4 to 10 h/week per employee on targeted tasks, meaning payback in 6 to 12 months for a team of 10 to 15 users.
Do I need an in-house data scientist? Not to start. An integrator handles the POC; you train an internal champion for daily operation.
Let's scope your project. Tell us your two priority use cases, your user count and your indicative budget, and we will scope the POC. 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.
