This page compares two common ways businesses implement AI: hiring an AI agency for a defined project, or bringing in fractional AI talent to work inside the team. It covers cost, speed, ongoing ownership, and which model fits different situations.
Rafiki Works is a managed fractional talent platform. We source, vet, and place fractional AI engineers, automation specialists, and growth operators with global clients, handling contracts, compliance, and cross-border payments through Petl Pay. We also support delivery squads for larger scoped projects.
AI agency vs fractional AI talent: how each model works
| Factor | AI Agency | Fractional AI Talent |
|---|---|---|
| Engagement type | Project-scoped. You define a deliverable and the agency builds it to spec. | Embedded part-time. A specialist works inside your team at 10 to 20 hrs/week. |
| Team relationship | External. You interact with an account lead or project manager. | Internal. The specialist attends standups, uses your tools, and knows your business. |
| Speed to start | 2 to 4 weeks (scoping, contracts, onboarding) | Under 1 week via a managed platform like Rafiki Works |
| Cost model | Project rate: $10,000 to $100,000+ per scope | Monthly rate: $1,500 to $8,000/month depending on hours and role |
| Ongoing iteration | Changes outside scope cost extra. Maintenance is a separate retainer. | Included. The specialist iterates continuously as part of the engagement. |
| Ownership after delivery | You own the output. The agency moves on. | The specialist owns and maintains what they build over time. |
| Compliance and payments | Handled by the agency | Handled by the platform (Petl Pay for Rafiki Works) |
| Best for | Defined, time-bound builds with a clear spec and budget | Ongoing AI implementation, embedded support, iterative work |
The cost difference
For a defined one-time project such as a specific AI feature or a contained automation build, an agency can be cost-competitive. You pay a project rate for a scoped deliverable, with a full team available to hit the deadline.
For ongoing AI implementation work, which is most businesses' actual situation, fractional talent is significantly more cost-effective. A fractional AI engineer at 20 hours/week through Rafiki Works costs roughly $3,000 to $8,000/month. An agency retainer for equivalent ongoing work typically runs $12,000 to $25,000/month.
| Scenario | AI Agency (estimated) | Fractional Talent via Rafiki (estimated) | Saving over 6 months |
|---|---|---|---|
| Single AI feature build | $15,000 to $40,000 project | $6,000 to $16,000 (2 to 3 months) | $9,000 to $24,000 |
| Ongoing automation ops | $12,000 to $25,000/month retainer | $1,500 to $8,000/month | $63,000 to $102,000 |
| AI implementation plus iteration | $50,000 to $120,000 project plus retainer | $9,000 to $48,000 (6 months) | $41,000 to $72,000 |
The real cost question: If the work requires ongoing iteration, monitoring, and improvement, which AI systems always do, fractional talent almost always wins on total cost over a 6-month horizon.
The ongoing iteration problem
This is the factor most businesses underestimate when choosing between an agency and fractional talent. AI systems are not like traditional software. They degrade, drift, and require constant tuning. Prompts need updating as model behaviour changes. Retrieval pipelines need reindexing. Agent logic needs adjustment based on real-world usage.
An agency delivers a system and hands it off. Any changes after handoff require a new scope, a new contract, and often a new project timeline. A fractional AI engineer owns the system they build. They are the one debugging it, improving it, and responding when something breaks.
Worth asking before you decide: Who will maintain this system in six months? If the answer is "us, but we don't have the skills yet," fractional talent almost certainly makes more sense than an agency build.
