AI software house: how to choose a supplier that actually builds with AI

We do not sell AI-assisted engineering off a slide deck. For a year we turned our own company into a laboratory and built thirteen systems with this method. Nine of them run in production today and cost us real money whenever they misbehave.

This page is what we could not find when we started: a decision framework with numbers in it. Not a ranking of companies.

13
systems built for ourselves, nine of them in production
faster, for new systems built from scratch
tens of $
a month is what all our systems cost together
129
items on the roadmap, debt counted rather than hidden

AI software house: two different meanings that buyers confuse

Ask five suppliers whether they are an "AI software house" and five will say yes. They will be talking about two completely different things, and which one they mean decides what you get for your money.

AI as a build method

AI assistants are a tool in an engineer's hands, the way a compiler and a debugger were before them. Code is produced faster, so the project costs less and arrives earlier. But the system you receive has no artificial intelligence inside it. It is ordinary, solid software, built for less.

AI as a product feature

A language model, search across your own documents, an agent that performs tasks, machine learning that predicts failures. Here the AI is in the product: your company starts using it, not just the contractor while writing code.

Why this distinction decides where your money goes

A supplier who only has the method is selling you speed. You get the system sooner, but your company still does not use AI.

A supplier who only has the feature is usually one of two cases.

Either a classic software house that added AI to the offer, and then two questions are worth asking. First: if they do not use AI in their own build process, on what basis will they build good AI features into your product? Second: even if they do build them, those features will arrive at the price and pace of a classic software house, which means expensive and slow.

Or an agency working on a ready-made platform, in which case the solution works for as long as you fit inside what the platform anticipated, and for as long as the platform exists.

A supplier who has both builds quickly and leaves you a system that genuinely works with AI. That is where we stand.

A control question worth asking anyone: what exactly does the AI model do here, and what is an ordinary "if" statement? Anyone who cannot answer in two sentences is calling every automation AI.

What the four kinds of AI software are, and what each of them costs, is set out separately in AI software: four different things sold under one name.

AI software house vs classic software house vs AI agency: five supplier types

The market looks uniform only from the outside. Inside it is five different business models, with the risk distributed differently in each.

Supplier typeAI in the methodAI in the productWhose codeTime to MVPRangeWho maintains itWhere it fails
Classic software houseyours, under contractmonths50k – 2M USDa team of 5–15small budget, shifting scope
AI software house✓ or ✗yours, under contractdays or weeks1.5k – 75k USDa small teamlarge legacy, safety-critical systems
AI / automation agencylives on someone else's platformdays or weeksbilled per operationthe supplierwhen you need your own logic
Staff augmentation - - yours - billed by the houryouwhen you have nobody to manage them
Off-the-shelf SaaS✓ or ✗you do not have it at alldaysper-user subscriptionthe supplierwhen the process is your advantage

How to tell who you are talking to, in the first conversation

What software with AI costs: market ranges and our own bill

What you pay to build

An important caveat before the table. The ranges below come from figures published by development vendors in 2026, not from an independent market study. Read them as an order of magnitude rather than a price list. What is consistent across sources is the shape, not the precision.

WhatHow muchSource
MVP, simple8k – 20k USD[1]
MVP, medium20k – 45k USD[1]
MVP, complex or AI-native45k – 100k+ USD[1]
Mid-market solution150k – 500k USD[2]
Enterprise system500k – 2M USD[2]
Annual maintenance20–30% of project value[2]
Data preparation40–60% of project timeline[1]
AI software house, first working system1.5k – 7.5k USDour own figure ↓
AI software house, operating system for a mid-sized company15k – 75k USDour own figure ↓

Where the last two numbers come from

They are ours, not the market's, and they hold in one scope: new systems built from scratch, which is the only class where the speed-up behind them is documented. They are converted from the currency we work in, so read them as a band rather than a quote. The method behind them, together with the studies that contradict it, is described in What is AI-assisted engineering.

What you pay to keep it running, and why that question matters more than the build price

The market rule of thumb is 20 to 30 percent of the project value per year. Here is our own infrastructure bill instead, per system, per month:

SystemCost per month
Monitoring portal~1 USD
Invoicing automation~0.42 USD
Mailboxes, three accounts~1 USD
Notification hub0.10 USD
Demand radar0.05–0.20 USD
Content production boardclose to zero, shares existing resources
AI models, usage-basedfrom cents per report to tens of USD

All our internal systems together cost tens of dollars a month.

Why "tens" when the table adds up to a few. Because the infrastructure really is a few dollars, but the AI models are billed separately and by usage. A single model-written report costs cents. One implementation error is enough to make that bill grow: it happened to us once and consumed 70 USD in two weeks before our monitoring caught it. Our alert thresholds were set too high. That is why we round the number up.

Methodological caveat: this is the cost of infrastructure, not of human work. Servers are cheap. Maintaining a system is also somebody's time, spent on reviews, fixes and reacting when something stops behaving.

The number does say something useful about architecture, though. A system designed to pay for consumption rather than for reserved capacity generates no cost while nobody is using it. A supplier quoting several thousand a month for maintenance should be able to say exactly what for.

Should it be cheaper because of AI?

The market does not agree on this, and it is better to show the disagreement than to pretend it away. One side lowers prices, arguing that model costs have fallen by a factor of ten to a hundred in two years, so producing software got cheaper too. The other side warns about exactly that arithmetic: the red flags are "an app from 5k", "an MVP in 4 weeks", "a fixed price of 100k with no defined scope" [3].

Our position: a low price without a defined scope is not an advantage. It is a transfer of risk from the supplier to you, and you pay it later, in changes.

Is "5× faster with AI" true? What the studies say

We claim a fivefold speed-up ourselves. Below are the results of research into how AI assistants affect the pace of work, including the ones that do not favour that claim.

Studies that support it

Studies that contradict it

Where AI speeds things up and where it gets in the way

Strong speed-upNo help, or harm
boilerplate and application scaffoldingwork on large, mature legacy
standard data operations, API interfacesdebugging
systems built from scratchcomplex domain logic
entering an unfamiliar technologyreviewing somebody else's code

The scope in which our number holds

Five times faster, for new systems built from scratch. Not on somebody else's legacy. Not on debugging. Not as a universal multiplier.

Our implementations sit exactly in that class, which is why the number works for us:

It is worth asking any supplier where their multiplier stops applying. The absence of an answer to that question is itself information.

Is AI-generated code yours? The legal position in 2026

What the law says

Two jurisdictions, one direction. In the European Union, a work requires a human author, so purely generative output is not protected by copyright and is not a "work" in the legal sense. In the United States the Copyright Office reached a comparable conclusion in the second part of its report on copyright and artificial intelligence, published in January 2025: material generated without meaningful human contribution is not registrable [10].

Code with a meaningful human contribution behaves normally: the specification, the architectural decisions and the review are human authorship, and the result is protected on ordinary terms.

What follows for you

The practical consequence is not the one most buyers expect. The risk is not that somebody else owns your code. The risk is that nobody does, which means nobody is stopped from using the same fragment elsewhere. That is why the contract question worth asking is not only "will the rights be transferred to me", but also "how does this code come into being".

A good answer versus an evasion

A good answer sounds likeAn evasion sounds like
"Every module has a specification and a named reviewer, and that is recorded.""Everything is generated by AI, so it is fast."
"The repository is yours from day one, we work in it.""We will hand over the code at the end of the project."
"Here is the commit history and the review record.""We do not share internal process details."

The above is not legal advice. It reflects the state as of September 2026.

The EU AI Act: what applies to you and from when

Briefly, because in most cases the answer is simpler than it looks. The Act reaches any supplier placing an AI system on the EU market, so it matters whether or not your own company sits inside the Union.

Your typical case. A bespoke transport system, an invoice workflow, a production panel: these are not high-risk systems. Your obligations come down to transparency and staff competence. High risk begins where AI assesses people: recruitment, scoring, access to benefits. And that starts in December 2027.

The above is not legal advice. The dates have moved before, so check them before relying on them.

Ten questions for a supplier, and what a bad answer sounds like

#QuestionA good answerA bad answer
1What exactly does the AI model do here, and what is an ordinary condition?names the decision and its boundary"the whole thing is AI-powered"
2Do you use AI in your own build process, or only in what you deliver?describes both, separatelytreats them as the same thing
3Who reviews the code before it reaches production?a named person and a named moment"AI checks it"
4Where did this method not help you?lists areas without pausinghears the question for the first time
5Show me a system you built for yourselves and use daily.shows it, with the billshows a client portfolio instead
6Where does my data land, and does it train anyone's model?points to the contract clause"we use AI" with no detail
7What does maintenance cost, and what exactly is in it?splits infrastructure from human timea single monthly figure with no breakdown
8What happens to my system if you disappear?repository and documentation are yours already"that will not happen"
9What is the scope of your speed-up claim?names where it stops applyingpresents it as universal
10What tests stand behind this, and how many are there?gives numbers"we test everything manually"

When you should NOT choose an AI software house

Nine situations where it is worth looking for a different supplier, including instead of us.

  1. Systems where an error threatens health or life: higher-class medical devices, machine control, automotive. You need a process built for repeatable quality, not for pace.
  2. Certification requirements: system validation in pharma, aviation. Large suppliers with a ready compliance apparatus have the advantage there.
  3. You need ten to fifteen developers for six months or more. That is the profile of a classic software house. A small team will not carry it.
  4. The system is genuinely large and complex, with many modules and a multi-year horizon. The advantage of AI-assisted engineering grows where the whole thing fits in the heads of one or two engineers. The larger the system, the more it resembles the conditions in the METR study, where AI stopped helping. The main cost becomes coordination and guarding the architecture, not typing speed.
  5. A pure maintenance project on a large, old system. This is exactly the area where METR measured experienced developers as 19% slower. We will not sell you a speed-up where there is none.
  6. A process that is not your advantage. If it is ordinary paperwork, a ready-made platform will do it cheaper and faster. A bespoke system makes sense where you do something differently from your competitors.
  7. You have no decision-maker on your side and no budget for maintenance. Without a decision-maker the project stalls for weeks; without maintenance the system dies within a year.
  8. You are building a large mobile application that reaches deep into the phone: camera, sensors, Bluetooth, background work, permissions, push. That is work for native mobile specialists with their own release cycle in the Apple and Google stores. Typing speed is not the bottleneck here; the platform is.
  9. You are making a game. That is closer to creative work than to development: game design, art direction, balance, feel of the controls. Code is the smaller part, and AI accelerates precisely the smaller part. Go to a studio that makes games.

A free audit ends with a diagnosis rather than a quote pushed at you. If you fall into one of those nine situations, we will say so and point you at who to look for.

What it means for a system to have AI, on examples we use daily

This returns to the distinction from the beginning. Below is the second half: AI as a product feature. Every example is one of our own systems.

A weekly report on the company's condition

The model reads the state of every system and on Monday morning sends the owner a report with recommendations. Design decision: a deterministic algorithm computes the priority, the model only puts the result into language. The same situation always produces the same priority, so the model does not decide what is urgent.

A mailbox that classifies post and drafts replies in the owner's voice

It also extracts facts from correspondence and suggests them to the customer database. The first learning cycle collected ten corrections out of 838 messages.

Spotting sales opportunities in correspondence

The system recognises the signal, drafts a reply and puts it through a quality gate. A human always sends.

Demand radar

A weekly market review with the company context embedded and a validator that rejects any signal without evidence, meaning a specific address and quote. Without it, research produces plausible-sounding generalities.

Risk rules in the customer database

In its answers the system separates fact, calculation, missing data and conflicting data. It never presents a guess as a certainty.

What our systems do not do

That is the answer to the most common worry about AI in a company: that something will act without anyone knowing. It can be designed the other way round.

We built our own company with this method before we started selling it

31 July 2025: we bet everything on one card

That day the founder left the company he had co-built for years. The market was loud about a coming breakthrough in how software is made, and it had to be tested in practice. A test like that cannot be run in evenings; it needed all the available time.

For a year RapidLogic stopped being an agency and became a laboratory, with one task: run as many tests as needed to get a grip on the incoming technology before it becomes the standard.

What came out of it

Between 11 July and 26 August 2026, so in 46 days, thirteen systems were built. Nine run in production today and operate the company: a portal monitoring the state of every system, handling for three mailboxes, an invoicing automation, a customer database, a demand radar and a content production board.

Why "thirteen systems in 46 days" sounds unreal

Because the usual mental model of that sentence is thirteen products for sale. These are internal systems for a company of one, each solving one clearly defined problem, without a user interface for external clients, without onboarding, without a support department. That is a different class of work from a commercial product, and the number should be read with that in mind.

Rigour, not only pace

Rigour can be shown in numbers the same way pace can: automated tests on the key systems stand at 103/103, 114, 44, 25/25 and 18/18. The roadmap holds 129 items, so the technical debt is counted rather than hidden. A full code review at the end of July produced 13 findings; both high-severity ones were fixed and deployed.

Methodological caveat: this is an experiment run on our own company, without a control group. We compare our own working time against market quotes for the same scope, which is an indication rather than proof. The controlled studies are above, and their results are mixed.

Where this works best

Four areas with the shortest path from implementation to effect:

What is not on that list: medical diagnostics and regulated financial services. Different league of requirements, different teams, not our field.

Frequently asked questions

How is an AI software house different from an ordinary software house?

By two things worth separating: the build method (AI assistants as an engineer's tool, so faster and cheaper) and the product feature (AI built into the system your company uses). Some suppliers have only one of the two. Ask which.

Is AI-generated code mine?

Code with a meaningful human contribution, yes, on ordinary copyright terms. Purely generative output is not protected in the EU and is not registrable in the US. So ask not only about the transfer of rights, but about how the code comes into being.

Is "5× faster with AI" true?

For new systems built from scratch, yes, and that is the scope in which we state it. As a universal multiplier, no. The METR study found experienced developers working on mature code were 19% slower with AI, and 45% of developers say debugging AI code takes longer.

What does it really cost to run a system for three years?

The market rule of thumb is 20 to 30 percent of the project value per year. Cloud infrastructure alone can be far cheaper: our systems cost tens of dollars a month. But maintenance is also somebody's time. Count both before comparing offers.

When should I NOT choose an AI software house?

Safety-critical systems, certification requirements, a need for a large team over many months, pure maintenance projects on large legacy, processes with no competitive advantage in them, and when you have no decision-maker on your side.

How do I check whether a supplier really uses AI or only says so?

Ask them to show a system they built for themselves and use every day. Ask what the model does here and what is an ordinary rule. Ask where AI did not help them.

What happens to my system if the supplier disappears?

Which is why the code belongs in your repository from day one, the documentation has to allow another team to take over, and the system should not live solely on the supplier's account. Ask about it before signing, not after.

Will my data feed someone else's model?

It does not have to. Model providers offer a no-retention mode, and where confidentiality demands it, a locally hosted model is possible. A good answer is specific and points at the data processing agreement. "We use AI", with no indication of where the data goes, is a bad answer.

Why does one software house quote 90 thousand and not deliver, while another promises 30?

Because a price without a scope is not a price. The higher figure often includes a team, tests and maintenance; the lower one is sometimes an entry price after which you pay for every change. Compare the answers to the ten questions above, not the figures.

Start with a diagnosis, not with a quote

A free digital audit takes one to two days. It ends with a written diagnosis: what in your company can be built quickly, what is not worth touching, and what a realistic order of magnitude looks like. If it turns out that a subscription is enough for you, you will hear that too.

Read next

Sources

  1. Aggregated cost ranges for AI development published by development vendors, 2026 (Kellton, Upsilon, Uvik). Vendor-published, not an independent study.
  2. Enterprise AI development cost and maintenance ranges published by development vendors, 2026 (Appinventiv, Kellton). Vendor-published.
  3. Red flags in software pricing, jsoncrew.com, May 2026.
  4. Peng, Kalliamvakou et al., arXiv:2302.06590 (2023), GitHub and MIT controlled study.
  5. Chatterjee et al., ANZ Bank study.
  6. Becker, Rush, Barnes, Rein, METR (10 July 2025), metr.org.
  7. Stack Overflow Developer Survey 2025 (29 July 2025).
  8. DORA State of DevOps Report, 2024 and 2025 editions, dora.dev.
  9. GitClear, analysis of 211 million lines of code, 2020–2025.
  10. US Copyright Office, Copyright and Artificial Intelligence, Part 2 (29 January 2025); EU copyright framework on human authorship.
  11. Regulation (EU) 2024/1689 (AI Act) together with the Digital Omnibus on AI package (June 2026).

Last updated: 3 September 2026