What an AI project should cost a small Kiwi business in 2026

The question we get asked most often, by some distance, is: what does this actually cost?

The reason it's hard to answer in a Google search is that "AI project" covers everything from a free Microsoft Copilot trial to a million-dollar enterprise transformation. Most of the public number you'll find — McKinsey research, vendor case studies, big consultancy quotes — describes the top end of that range. It's not relevant to a 4-person business in Orewa.

This post is the small-business version. We'll be specific about prices, in NZD, for the work we actually do. If we're not the right team for your project, we'll tell you on the call — and where to find someone cheaper, including free options.

Two anchor numbers

Before any pricing, two real numbers from credible NZ research:

The AI Forum NZ's third productivity report (August 2025) found that 75% of AI setup costs now sit under $5,000 for New Zealand organisations ¹. That's the broad direction of travel.

Separately, 2degrees and Deloitte Access Economics published research in 2026 finding that the average NZ SME using AI earned roughly $400,000 more in FY25 than a comparable non-adopter ². That's the average — the variance is enormous — but it's a useful order-of-magnitude reminder that even modest AI projects can pay back quickly.

Treat both as context, not promises.

Tier 0 — Free or nearly free

Before you spend a dollar with anyone, including us, do these:

1. Try the AI features in tools you already pay for. Xero JAX, Microsoft Copilot in your Microsoft 365 subscription, Gemini in your Google Workspace. If you're already paying, the marginal cost is zero.
2. Apply for the free Xero/ASB AI bootcamp. Announced November 2025, delivered by academyEX over 12 weeks. Free for eligible NZ SMEs ³. This is genuinely good — start here.
3. Read what you can. AI Forum NZ publishes free reports. MBIE has small-business resources. Business.govt.nz has practical guides.

If you do all three, you'll have a reasonable sense of what AI can do for your business before you ever quote anything from a vendor. We'd much rather you start here.

Tier 1 — The weekend project · $500–$1,500

For: a single, well-bounded automation. Voicemail-to-text routing. A chatbot for your website FAQs. Auto-categorisation of bank transactions beyond what Xero already does. Email triage rules.

What you get:

• A short scoping conversation (free)
• One specific workflow built and connected to your existing tools
• A handover document (one page, plain English)
• Two weeks of bug-fix support after go-live

What you don't get:

• A custom platform
• Multi-month ongoing work
• A trained team

How long: 1–2 weeks, mostly in evenings.

This tier is for businesses that know exactly what they want fixed. If you can finish the sentence "I wish there was a button that just…" — this is your tier.

Tier 2 — The custom layer · $3,000–$8,000

For: a more involved workflow that spans two or three systems, with some judgement involved. Smart inbox triage that drafts replies. Quote generation from past invoices. End-of-day photo-to-invoice for tradies. Voicemail-to-CRM with categorisation.

What you get:

• Fixed-scope discovery (1 week, ~$800, credited against the build if you proceed)
• A build with two checkpoints — week 1 demo, week 3 demo
• Integration with your existing systems via APIs
• Plain-English documentation and a 60-minute training session for your team
• Four weeks of support after go-live

What you don't get:

• Replatforming or replacing existing systems
• Ongoing data engineering work (we'd quote that separately if it's needed)

How long: 4–6 weeks.

This is the tier most of our client work sits in. It's also where the AI Forum's "75% under $5,000" stat lives. If your project comes out at the top end of this range, that's because your existing systems are more complex, not because we're adding margin.

Tier 3 — The small platform · $15,000–$40,000

For: a custom internal tool that wraps several workflows for a team of 5–25 people. Examples: a job-management system for a small electrical contractor, a clinic intake assistant that also drafts referrals, an inventory + forecasting layer for a multi-location retailer.

What you get:

• Two weeks of discovery and design (~$2,400, credited)
• A senior pair (a developer + a designer/PM) for 8–12 weeks
• Weekly demos, no surprises
• Production deployment to your cloud or ours
• Three months of post-launch support
• Open code — you can hire someone else to maintain it

What you don't get:

• A multi-year engagement
• Lock-in to our infrastructure
• "Strategic AI consulting" without working software at the end of every week

How long: 10–16 weeks.

This is the tier where it stops being "AI integration" and starts being a small custom product. We do this work, but we'll honestly tell you that for many businesses, two or three Tier 2 projects deliver more value than one Tier 3.

What you should expect from anyone — not just us

A short, honest checklist if you're evaluating quotes:

• Fixed-scope discovery. A real provider should be able to scope a small piece of work for a fixed fee before quoting the build. Anyone who jumps straight to a five-figure number without scoping first is selling you certainty they don't have.
• A walk-away point. After discovery, you should be free to walk away with what you've learned. We deliver the discovery as a written document you own.
• Weekly demos. Software work goes wrong silently. Demos every week make it go wrong loudly, which is the only way to catch it early.
• No lock-in. Your code should be yours. Your data should be in your tenancy or somewhere you control. Your provider should be replaceable.

If any of these are missing from a quote you're considering, ask why. The answer will be informative.

Why we publish this

Most consultancies don't publish prices. There are two honest reasons (every project is different; quotes are negotiated based on what the client can pay) and one less honest one (mystery is a pricing tool). We publish ours because we think small businesses get the worst deal when pricing is opaque.

If you want to talk about a project that fits one of these tiers — or one that doesn't — book a 30-minute call. There's no charge, and no follow-up unless you ask for one. If we're the right team, we'll quote. If we're not, we'll send you somewhere better.