Build vs Buy AI: $180K In-House vs $25K Agency

Why This Guide Exists

'We'll just have our developers build it' sounds cheaper. But is it? Factor in salaries, time to market, opportunity cost, and ongoing maintenance. Here's the math.

Side-by-Side Comparison

All costs factored in. You decide.

Build In-House

Year 1 Cost

$180K-300K+ (Year 1)

Senior AI Engineer: $150K-180K salary + benefits

Backend Developer: $120K-150K (partial, 50% allocation)

DevOps/Infrastructure: $20K-40K setup + tools

Time to Hire: 2-4 months (lost opportunity)

Training/Ramp-up: 1-2 months before productive

Tools & Licenses: $10K-20K/year

Timeline

6-12 months to production

Pros:

Full control over code and architecture
Team learns AI capabilities (knowledge building)
Can iterate quickly once built
No dependency on external agency
IP stays in-house

Cons:

High upfront cost ($180K-300K year 1)
Long time to market (6-12 months)
Risk: Engineers may leave (knowledge loss)
Ongoing maintenance burden
May lack specialized AI expertise
Opportunity cost: Engineers not building core product

Best For:

Companies with: (1) Budget for dedicated AI team, (2) Long-term AI strategy needing multiple projects, (3) Strategic AI capabilities (core to business)

RECOMMENDED

Hire Agency (POSTMAN)

Year 1 Cost

$15K-50K (one-time)

Discovery & Strategy: $2K-5K

Development & Integration: $10K-35K

Testing & Deployment: $2K-5K

Training & Handoff: $1K-5K

Timeline

3-8 weeks to production

Pros:

Fast time to market (3-8 weeks)
Lower upfront cost ($15K-50K vs $180K+)
Specialized AI expertise included
No hiring risk or ramp-up time
Predictable cost (fixed price)
Your team stays focused on core product
We've done this 50+ times (avoid mistakes)

Cons:

Less control over architecture decisions
Dependency on agency for major changes
IP shared (though you own the code)
Knowledge transfer required
May cost more long-term if many iterations needed

Best For:

Companies with: (1) Need solution quickly (3-8 weeks), (2) Don't want AI team overhead, (3) Want to validate use case before big investment

Buy SaaS Platform

Year 1 Cost

$0-2K (setup fees)

Platform Setup: $0-1K

Configuration: $0-1K (often DIY)

Ongoing: $500-5K/month subscription

Timeline

1-2 weeks to launch

Pros:

Fastest to launch (1-2 weeks)
Lowest upfront cost ($0-2K)
No technical resources needed
Vendor handles maintenance/updates
Can cancel anytime (flexibility)

Cons:

Limited customization (template-based)
Ongoing monthly cost ($6K-60K/year)
Vendor lock-in (hard to migrate)
May not fit complex workflows
Per-usage pricing can get expensive at scale
Generic solution (not tailored to you)

Best For:

Companies with: (1) Simple use case (basic booking, FAQs), (2) Want to test concept quickly, (3) No custom integration requirements, (4) Small volume (< 1,000 interactions/month)

Decision Framework

You need AI solution in next 1-2 months

Recommendation: Hire Agency

Building in-house takes 6-12 months. SaaS if your use case is very simple.

You're building 3+ AI features over next year

Recommendation: Build In-House

Team can reuse learnings across projects. Agency cost adds up (3 x $25K = $75K, close to one engineer).

Simple use case (appointment booking, FAQs)

Recommendation: Try SaaS Platform First

Cheapest way to validate. If limitations hit, upgrade to custom (agency or in-house).

Complex workflow or compliance (HIPAA, PCI)

Recommendation: Hire Agency or Build In-House

SaaS platforms rarely handle complex compliance. Agency if need quickly, in-house if strategic.

Budget under $50K total

Recommendation: Hire Agency

Can't hire engineer for $50K. Agency gives you solution + expertise within budget.

AI is core to your business strategy

Recommendation: Build In-House (eventually)

Strategic capabilities stay in-house. Consider agency for MVP, build team after validation.

Real World Example

Company

Healthcare SaaS Company

Situation

Needed patient appointment scheduling automation. Debated build vs buy.

Option 1: Build In-House

Cost: $220K (hired AI engineer + backend dev part-time)

Timeline: 9 months to production-ready

Result: Worked well but 9 months = missed revenue opportunity. Engineer left after 1 year.

Option 2: Hire POSTMAN

Cost: $32K build + $8K/year maintenance

Timeline: 5 weeks to production

Result: Launched faster, saved $180K year 1, proved value before building team.

Final Decision

They chose agency (us). After validating with customers (6 months), hired AI engineer to build v2 with more features. Hybrid approach worked perfectly.

Common Questions

Isn't it always cheaper to build in-house long-term?

Not necessarily. If you need 1-2 AI features, agency is cheaper ($30K-60K total vs $200K/year for engineer). If you need 5+ features over 2 years, in-house becomes cheaper. Most companies overestimate how much AI they'll build.

What if we hire agency then want to take over later?

Perfect approach. We hand off clean code, documentation, and train your team. Many clients do: agency for MVP (prove value fast), hire engineer after validation to expand features. We support this.

Can we do a hybrid (agency builds, we maintain)?

Yes! Common model: We build (3-8 weeks), hand off code, your engineers handle minor updates. We stay available for major features/fixes. Saves you maintenance cost ($300-1K/month) if you have technical team.

How do I know if my use case is too simple for custom build?

If your workflow is: (1) Single integration, (2) No compliance requirements, (3) Template conversation flow, (4) < 500 interactions/month → Try SaaS first. Everything else benefits from custom.

What's the 'opportunity cost' you mention?

If your engineers spend 6 months building AI instead of core product, what revenue did you miss? If core product generates $50K/month and AI delays launch 6 months, opportunity cost is $300K. Factor this into 'build' decision.

What would YOU recommend for most companies?

Honest answer: Agency for first AI project (prove value fast, low risk). If it works and you want more AI features, hire in-house team or keep using agency for speed. Don't hire AI engineer before proving the use case works.

Build vs Buy AI: $180K In-House vs $25K Agency - The 2026 Math

Why This Guide Exists

Side-by-Side Comparison

Build In-House

Hire Agency (POSTMAN)

Buy SaaS Platform

Decision Framework

Real World Example

Option 1: Build In-House

Option 2: Hire POSTMAN

Common Questions

Ready to Get Accurate Pricing?