Should You Invest 80K in AI?

No...

Well, that's it for my newsletter this week.

Okay, it can work. Let me explain.

I was sitting with a potential client who told me about an AI agency, smaller than NinA AI. But with bigger balls, I think. Because they easily put an 80K quote under the noses of prospects. WOW!

Shit, I thought. Are we too cheap? Is this my ticket to exponential growth?

Fortunately, I quickly came back to earth.

TL;DR:

Why I stick to my approach

Because I set an important goal when I started NinA AI: make AI practical.

Our strength is that within 1 month we've built something that saves you time. Yes, we have to express our work in hours, but I hate hour factories. We deliver.

I'll be honest: with most clients we run too many hours that we don't invoice. Business-wise our loss, fortunately we're getting better at it. But I want to prove that AI can prove its value in every organization. Step by step.

The hard reality of AI investments

So back to that 80,000 euro investment. Don't get me wrong, it's possible. In fact, I hope there are organizations that dare to invest that hard.

But here comes the hard reality: between 70 and 85% of all AI projects fail. (source)

That's twice as high as traditional IT projects. The RAND Corporation confirms this: more than 80% of AI projects don't meet expectations. (source)

And you know what's crazy? Boston Consulting Group found that only 22% of companies get past the proof-of-concept phase. The remaining 78% get stuck in endless pilot projects. (source)

Why big investments usually fail

The problem isn't the budget. The problem is the approach.

But you also need the resources for that. And besides, starting small is always the right way.

Because most organizations are still figuring out what their AI policy should look like and how to prompt. What we do is simply too next level for most. But those who remain, we serve them.

The smart way: growing incrementally

You know what successful AI implementations have in common? They follow the 20-30-50 principle.

AI leaders focus on half the number of opportunities compared to less advanced companies. They concentrate on fewer, but impactful initiatives.

And those organizations that do it right? They achieve an average of $3.70 return for every dollar invested. The top performers even get 8 to 10 dollars per invested dollar. (source)

Microsoft and IDC research shows that companies with the right guidance realize their AI value within 14 months. Without expertise, it takes years.

The practical step-by-step plan

So as far as I'm concerned, you go through the following steps as a company or department:

The difference? In phase 1, you're already creating value. With an 80K big-bang investment, you spend months planning before you see anything.

Why Dutch companies do it differently

What I see in the Dutch market is unique. 87% of Dutch companies report positive impact from AI integration. That's higher than the European average. (source)

But only 4% are truly ready for AI implementation according to Cisco research from 2024. The remaining 96% recognize the potential but struggle with execution.

And that's exactly where we step in. Not with 80K consulting reports that collect dust. But with practical implementations that deliver results within weeks.

Conclusion

That 80K? It's possible. But only if you've already gone through three phases and proven that AI works in your organization.

Start small. Prove value. Scale smart.

Because as my research shows: incremental approaches consistently outperform big-bang implementations. And that's not just cheaper, it's also more effective.

What do you think? Are you one of those organizations that wants to invest 80K directly? Or do you prefer the route of proven value?

I'm curious about your experience with AI investments in your organization.

Until next time,

Olaf Lemmens

Founder · NinA AI Agency

P.S. Want to know how your organization can best get started with AI? Schedule a meeting at www.nina-ai.nl