How much does AI consulting cost?

BlokAI's engagements range from $5,000 to $75,000 depending on scope. Simple automations and LLM integrations start around $5K–$15K. Custom AI agent systems and full data infrastructure projects run $30K–$75K. We scope every project before committing to a price.

What does BlokAI build?

BlokAI builds AI agents, LLM applications, RAG systems, automation pipelines, and data infrastructure for startups and SMBs. We take projects from architecture to production — not demos, not prototypes.

Is BlokAI based in Japan?

Yes. BlokAI is a solo studio run by Kent Tran, based in Tokyo, Japan. We work with clients globally in English.

What is RAG and why does my business need it?

RAG (Retrieval-Augmented Generation) lets AI systems search your own documents, databases, or knowledge bases before answering — instead of relying only on training data. It powers AI customer support, internal search tools, and sales enablement systems that are accurate and up-to-date.

The Real Cost of AI Consulting: An Honest Breakdown

"Apple Intelligence is the personal intelligence system that puts powerful generative models at the core of iPhone, iPad, and Mac — and it's deeply integrated into the OS." — Apple WWDC, June 10, 2024

Pricing transparency in the AI consulting market is rare. Most studios and consultancies bury their rates, give vague "it depends" answers, or quote numbers that only make sense after a three-call sales process. I'd like to try something different.

This is an honest breakdown of what AI consulting costs, why prices vary, and how to evaluate whether you're getting value for money. I'll use our own pricing at BlokAI as a reference point, plus market context from what I see in Tokyo and internationally.

The Pricing Models You'll Encounter

Project-based (fixed scope): A defined scope of work for a fixed price. You know what you're getting and what it costs upfront. Works well when requirements are clear. Risk for the consultancy: scope creep. Risk for the client: if needs evolve, change orders add cost. Time and materials (hourly/daily): You pay for time spent. More flexible, adapts as requirements change. Risk for the client: harder to budget. Works well for exploratory work or projects where requirements will evolve. Retainer: An ongoing monthly fee for a defined number of hours or a scope of ongoing work. Best for businesses that have AI systems in production and need continuous improvement, monitoring, and support. Success-based: Rare but exists. Fees tied partly to outcomes. Aligns incentives but requires very clear, measurable outcome definitions upfront.

Day Rates and Hourly Rates: The Market Reality

For independent AI consultants and small studios in 2024:

Junior (1-2 years AI experience, mostly prompt engineering): $100–150/hr, $800–1,200/day
Mid-level (2-4 years, has shipped production systems): $150–250/hr, $1,200–2,000/day
Senior (4+ years, significant production systems, architecture-level thinking): $250–400/hr, $2,000–3,200/day
Specialised expertise (specific industries, Japanese/multilingual AI, specific regulated domains): $300–500/hr

Larger consultancies (Big 4, major tech consultancies) charge significantly more — $400–800/hr at the senior level — and you're often paying for brand, not expertise. The best AI talent frequently works at boutique studios or independently because the autonomy and compensation economics are better.

In Tokyo, rates for Japan-market-focused AI work tend to be somewhat higher than comparable Western markets, partly due to the language specialisation required and partly due to market demand outpacing supply.

Project Cost Benchmarks

Here's what different types of AI projects actually cost to build, using realistic figures:

Internal Knowledge Base / RAG System

Scope: Index 100-500 documents, build retrieval layer, simple chat interface, for ~50 internal users. Realistic range: $15,000–$30,000 all-in Duration: 6-10 weeks What drives cost up: Poor data quality, multiple data sources, complex access control, high performance requirements

Customer Support AI

Scope: Handle common customer queries, escalate to humans, integrate with existing helpdesk. Realistic range: $25,000–$60,000 Duration: 8-14 weeks What drives cost up: Complex product catalog, multi-language requirements, high accuracy bar, integration complexity

AI-Powered Document Processing

Scope: Extract structured data from forms/invoices/contracts, validate, route to systems. Realistic range: $20,000–$45,000 Duration: 6-12 weeks What drives cost up: Document variety, edge cases, downstream system integration, compliance requirements

Custom AI Agent for Specific Workflow

Scope: Multi-step automated workflow replacing manual process. Realistic range: $30,000–$80,000 Duration: 10-18 weeks What drives cost up: Complexity of workflow, number of integrations, reliability requirements, new infrastructure needs

AI Strategy Engagement (Consulting Only)

Scope: Assess business, identify opportunities, produce a roadmap. Realistic range: $5,000–$20,000 Duration: 2-4 weeks What drives cost up: Organisation complexity, number of stakeholders, depth of technical analysis

What Drives AI Consulting Costs (And What You Can Control)

Data quality: The single biggest driver of project overruns. Projects with clean, well-structured existing data run significantly under budget. Projects that discover data chaos mid-build run over. Investment in data quality before engaging a consultant saves money. Scope definition quality: Vague requirements lead to rework. The more clearly you can define what the system needs to do before the project starts, the closer the project stays to estimate. Integration complexity: Connecting AI to existing systems (CRM, ERP, helpdesk, etc.) is often the most time-consuming and expensive part. Modern systems with good APIs are cheaper to integrate. Legacy systems without APIs require more work. Accuracy requirements: Going from "good enough" to "very high accuracy" is a non-linear cost. A system that handles 80% of cases well might take 8 weeks. Getting to 95% accuracy on a harder distribution of cases might take an additional 4-6 weeks. Ongoing support: Build a realistic estimate of ongoing costs from day one. A production AI system that nobody maintains degrades. Budget 10-20% of build cost annually for maintenance.

How to Evaluate Value

Don't just compare hourly rates. Compare:

The track record and portfolio of the consultancy
Who actually does the work (vs. who you meet in the sales process)
Whether they've built the specific type of system you need
Whether they have a clear methodology for scoping and evaluation
Whether they're honest about risks and limitations

A consultant who charges $200/hr and delivers a system that works is much better value than one who charges $100/hr and needs to rebuild twice.

The cheapest AI consulting option is almost never the best value. But neither is the most expensive.

Want to implement AI in your business? Book a 30-minute architecture call at blok-ai.com.