Budget for AI by ambition, not by tool price. A pilot on existing software can cost almost nothing; a bespoke system integrated into core operations runs into serious money. The mistake is budgeting only for the licence and being blindsided by everything around it.
Three budget tiers
- Experiment (tens to low hundreds per month): off-the-shelf subscriptions, one team, no integration
- Adopt (low thousands): a paid business tool rolled out properly, with training and light integration
- Transform (tens of thousands and up): custom builds, systems integration, ongoing support and governance
Most businesses should start firmly in tier one and only climb once a tier has paid for itself.
Budget for the wrapper, not just the tool
The licence is often 20% of the real cost. The rest is training, change management, integration and oversight - the same items that make up the hidden costs of AI implementation. Leave those out and your budget is fiction.
The bottom line
Pick an ambition tier, budget for the whole wrapper around the tool, and prove each tier before funding the next. Sizing AI investment honestly is a core skill in the Understanding AI: What Leaders Need to Know course at London School of Business UK. Enquire today.