Tim Hauptrief

Big questions. Real life. A little Tim.

The True Cost of Building Software with AI

Illustration of a calculator, cost cards, clock, and laptop on a desk.

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The price of a software project is larger than the tool subscription used to create it. A working feature also needs testing, hosting, support, and someone to maintain it when conditions change. I want those parts visible when deciding whether a project is useful.

Keep two views of cost

Cash costs include subscriptions, usage charges, hosting, storage, and other services. Time includes planning, reviewing generated code, checking behavior, resolving problems, and supporting the result. Tracking them separately prevents a low cash bill from hiding a large amount of work.

Development and ongoing operation also deserve separate views. A one-time prototype may use little infrastructure. A product used repeatedly needs continued attention to the information it stores and the behavior its users depend on.

A hypothetical monthly example

Here is an illustration, not my budget and not current vendor pricing: $40 for tools, $20 for usage, $15 for hosting, and $25 for other services total $100 in cash costs. If review and maintenance take eight hours and I choose to value that time at $30 per hour, the time allowance is $240. Together, the illustrative economic cost is $340.

The chosen hourly value is an assumption. Changing it changes the comparison. The point is to show the calculation and distinguish cash spending from the value assigned to time, rather than presenting an invented figure as an actual project expense.

Compare complete workflows

A cheaper development session can still produce expensive follow-up work. I would compare alternatives by the time required to reach verified behavior, the errors left to correct, and the effort to keep the result usable. Those are evaluation questions, not measured savings from my projects.

For the practical motivation behind one project, the Business Binder introduction shows the kinds of service-business records I want software to connect. Whether a tool earns its cost depends on how it helps with that work.

Make the record useful

My approach is to record cash spending, development time, recurring maintenance, and the task the software is meant to improve. Then I can revisit the assumptions as the project grows. AI may change how the work gets done; the full cost still needs to be understood.

Keep reading

Testing before making claims · MBA study and business

About Tim Hauptrief · Research notebook

Prepared with AI assistance. Featured illustration generated with AI.

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