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    Private & Secure AI

    What does private AI cost for a 25-user UK business?

    8 min readUpdated August 2026

    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. 1–2 weeks

      Audit and baseline

      Sources, permissions and time currently lost.

    2. 2–4 weeks

      Pilot

      Small group, limited knowledge set and measured answer quality.

    3. 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.

    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.

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