In-House AI Team vs AI Consulting: Which Is Right for You?
One of the biggest decisions for SMBs adopting AI: build internal capabilities or partner with external experts? Here's a balanced analysis of both approaches.
Understanding Both Approaches
External expertise on demand
Best For:
Companies wanting fast results without long-term hiring commitments
Full-time internal AI capabilities
Best For:
Companies with ongoing, complex AI needs and budget for full-time hires
Key Differences at a Glance
| Factor | AI Consulting Partner | In-House AI Team |
|---|---|---|
| Time to First Results | 2-8 weeks | 3-6 months (hiring + onboarding) |
| Upfront Cost | Project-based, predictable | High (recruitment, salaries, tools) |
| Long-term Cost (3+ years) | Can become expensive if ongoing | More cost-effective at scale |
| Deep Company Knowledge | Learns your business during engagement | Deep institutional knowledge over time |
| Breadth of Expertise | Access to diverse specialists | Limited to who you hire |
| Flexibility | Scale up or down easily | Fixed headcount commitments |
| IP Ownership | Depends on contract terms | Full IP ownership |
When Each Approach Makes Sense
- You're exploring AI for the first time
- You need specific expertise you can't hire locally
- Your AI needs are project-based, not continuous
- You want to validate AI value before hiring full-time
- Your budget doesn't support $150K+/year AI salaries
- You have continuous, complex AI workloads
- AI is core to your product or competitive advantage
- You can attract and retain AI talent in your market
- You need deep integration with proprietary systems
- You have budget for $150K-$500K+/year in AI salaries
Capability Comparison
Each approach has distinct strengths depending on your stage and needs.
| Factor | AI Consulting Partner | In-House AI Team |
|---|---|---|
| Speed to First Project | 2-8 weeks | 3-6 months |
| Annual Cost (Year 1) | $20K-$200K | $150K-$500K+ |
| Scaling Flexibility | ||
| Deep Company Knowledge | ||
| 24/7 Availability | ||
| Diverse AI Expertise | Limited | |
| Government Funding Eligible |
Choose AI Consulting Partner When...
- You're starting your AI journey and want to test the waters
- You can't hire AI talent at competitive salaries in your market
- Your AI needs are project-based (quarterly or annual initiatives)
- You want to validate ROI before committing to full-time hires
- Your budget is under $150K/year for AI initiatives
Choose In-House AI Team When...
- AI is core to your product and competitive advantage
- You have continuous daily AI development needs
- You can offer competitive AI salaries ($120K-$250K+ for senior roles)
- You need deep integration with proprietary systems and data
- You're ready to invest $300K+/year in AI team infrastructure
How Pertama Can Help
Whichever approach you choose, Pertama Partners can support your AI journey.
Frequently Asked Questions
Absolutely. This is actually the most common and recommended approach for SMBs. Start with consulting to validate AI value, learn what works, and then hire strategically based on proven needs rather than assumptions.
Very competitive. Senior AI engineers command $120K-$250K+ in Singapore, with similar demand in Malaysia and Indonesia. The talent pool is limited, and big tech companies offer stock options that SMBs can't match. Consulting can bridge this gap while you build recruitment pipelines.
Roughly 18-24 months of continuous AI work. If you need AI specialists working full-time for 2+ years, in-house becomes more cost-effective. For project-based or part-time needs, consulting is more economical.
Government subsidies (HRDF, SkillsFuture, CEF, Prakerja) primarily fund training programs — which applies to both approaches. Train existing staff through subsidized programs whether you're building in-house or preparing your team to work with consultants.