AI Team Cost Calculator

Compare the true cost of building an in-house AI team versus outsourcing to consultants

Quick Select Team Size

Team Composition

AI Engineers

Salary ($)

ML Engineers

Salary ($)

Data Scientists

Salary ($)

Data Engineers

Salary ($)

Total Team Size: 5

Benefits & Overhead

Benefits Rate (% of salary)

Equipment per Person ($)

Office Space per Person ($/month)

Tools & Infrastructure

AI Tools per Person ($/month)

Cloud Infrastructure ($/month)

Software Licenses ($/month)

Recruiting & Training

Recruiting Cost per Hire ($)

Onboarding Duration (weeks)

Annual Training Budget ($)

Time to Hire (months)

Time to Productivity (months)

Consultant Costs

Hourly Rate ($)

Hours per Month (Year 1 Implementation)

5.0 FTE equivalents (160 hrs/month = 1 FTE)

Retainer Hours per Month (Year 2-3)

1.3 FTE equivalents - Scaled-back hours for ongoing support

Project/Setup Fee ($)

Retainer Duration (months/year)

In-House Year 1 Cost

$1,412,000

Includes one-time setup costs

Consultant Year 1 Cost

$1,960,000

12 months + project fee

Year 2-3: $480,000/year (retainer only)

3-Year Savings

$760,000

In-house more expensive

Time to Value

9 months

vs 1 month for consultants

Annual Cost Comparison

In-House Cost Breakdown

Salaries (Annual)$690,000

Benefits$207,000

Recruiting$125,000

Equipment$15,000

Tools & Infrastructure$237,000

Year 1 Total$1,412,000

Consultant Cost Breakdown

Hourly Rate$200/hr

Monthly Cost$160,000

Annual (12 months)$1,920,000

Project/Setup Fee$40,000

No recruiting/equipment$0

Year 1 Total$1,960,000

Strategic Factors Comparison

3-Year Cost Projection

Key Insights

In-House Team

5 team members at $282,400 per person (year 1)

Effective Hourly Rate

In-house: $118/hr vs Consultant: $200/hr

Time Investment

9 months to full productivity vs immediate with consultants

3-Year Total

In-house: $3,680,000 vs Consultant: $2,920,000

Break-Even Point

4.2 months until in-house becomes more cost-effective

Strategic Consideration

Consultants provide flexibility but cost more over time

Decision Framework

Consider In-House If:

✓ Long-term AI strategy (3+ years)
✓ Need deep institutional knowledge
✓ High volume of ongoing AI work
✓ Want full control over team & IP
✓ Can invest time in hiring & training

Consider Consultants If:

✓ Need to start immediately
✓ Short-term or project-based work
✓ Want flexibility to scale up/down
✓ Need diverse expertise quickly
✓ Testing AI viability before committing