Private & Secure AI
What does private AI cost for a 25-user UK business?
The short answer
A permission-aware private AI knowledge system for 25 UK users typically costs £12,000 to £30,000 to implement and £250 to £900 a month to run and support. That assumes two or three approved sources such as SharePoint, Outlook shared mailboxes and a CRM, existing identity, citations, audit logging and a controlled pilot. On-premises models, voice, write access or poor source quality can raise the build above £40,000.
Indicative price ranges
Pilot
£6,000–£12,000
5–10 users, one use case, limited source set and measured success criteria.
Typical 25-user rollout
£12,000–£30,000
Permission-aware sources, citations, logs, training and controlled rollout.
Complex 25-user deployment
£30,000–£50,000+
On-premises, several data classes, bespoke systems, voice or approved write workflows.
User count is rarely the main cost driver. Source complexity, permissions, assurance and write access matter more; there is no per-seat licence in a bespoke deployment unless an underlying provider charges one.
Typical timescales
- 1–2 weeks
Audit and baseline
Sources, permissions and time currently lost.
- 2–4 weeks
Pilot
Small group, limited knowledge set and measured answer quality.
- 2–6 weeks
Rollout
Approved sources, all 25 users, training and operating documentation.
Who this suits
- Teams with repeated internal questions and fragmented approved knowledge.
- Businesses already using Microsoft 365 identity and permissions.
- Organisations able to appoint source owners and a pilot sponsor.
Who it does not suit
- Low question volume that standard search already handles.
- Messy content with no owner or version control.
- A plan based on removing jobs rather than improving a measurable workflow.
What actually drives the cost
Source count
Every system needs connection, cleaning, permission mapping and testing.
Content quality
Contradictory documents create contradictory answers.
Write access
Taking action needs approval logic and a stronger test regime.
Deployment
On-premises operation costs more than managed UK-region infrastructure.
A realistic 25-user scope
The middle range should include discovery, a data-flow design, two or three sources, Microsoft identity, document-level permissions, citations, refusal behaviour, audit logging, a small pilot, user training and operating documentation. It should not quietly assume that every mailbox or legacy database is clean and ready.
Budget £250–£900 a month for hosting, model use, monitoring, source upkeep and support. Consumption depends on document volume and question frequency, so insist on a usage model rather than a vague licence.
The relevant proof on this site is York Racecourse, where AI concierge work demonstrates high-volume question handling. It is not an internal 25-user knowledge deployment, so we label it accurately rather than presenting the two as identical.
How we worked these numbers out
The price bands and timescales on this page are first-party figures taken from projects The Digital Hub has quoted and delivered for UK clients since 2020, not from third-party survey data. Ranges are rounded and exclude VAT. They are reviewed at least every six months and updated when our own delivered costs move. Where a figure depends on a third-party licence or hosting cost, that cost is named in the text so you can check it yourself.
Sources
- Guidance on AI and data protection — Information Commissioner's Office (ICO)
- International data transfer agreement and addendum — Information Commissioner's Office (ICO)
- Data, privacy, and security for Microsoft 365 Copilot — Microsoft Learn
- Enterprise privacy commitments — OpenAI
Written by
Tom Beachell
Technical Director, The Digital Hub
Tom leads scoping and delivery at The Digital Hub, quoting and shipping bespoke websites, CRM platforms and private AI systems for UK businesses. The price bands and timescales on this page come from projects he has personally scoped.
Published 01/08/2026 · Last reviewed 01/08/2026 · About The Digital Hub
Common questions
Is the price per user?
Usually not for a bespoke system. User count affects training and concurrency, while sources and permissions drive most implementation cost.
Is Microsoft 365 Copilot cheaper?
It may be. Compare three-year licence cost and fit against the control, sources and workflow you need.
Can we start smaller?
Yes. A measured 5–10 user pilot is the safest way to confirm value and source quality.
Next step
Get a fixed price for your own version of this
A 30-minute scoping call, then a written fixed price and delivery date. If an off-the-shelf tool is the cheaper answer for you, we will say so on the call.
- 1You tell us the process and the tools you pay for today.
- 2We map the scope and flag anything that will move the number.
- 3You get a fixed price, a schedule and an honest recommendation in writing.
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