Blog · By Rea Hailley, CEO and Co-Founder
Do You Need AI Automation? A Simple Test for Small Business Owners
You may not need AI at all.
See which parts of your business need AI, which don't, and what each costs to run each month.
New Idea Machine is a Calgary custom software and AI automation agency serving small business owners worldwide.
A business owner told me on a call last week, "The thing holding [her business] back is not having a system."
Her business is growing fast. Every client session lives on a paper calendar and a spreadsheet, and she's the one keeping it all moving.
She came to us asking about AI automation. So I brought in our CTO, AL Del Degan, who has 33 years of experience building software, and one of our senior AI automation specialists to look at her workflow with her.
What would help her most right now is a simple system that tracks every client's sessions, with reports that fill themselves in from her own data. No AI required, which means no AI usage fees.
Here are the questions she asked us and the answers she got, so you can use them for your own business.
When does a small business need AI automation, and when doesn't it?
Her first question was whether her business needed AI automation at all.
Most small businesses need mostly regular software, like an internal tool or a web app, with AI only where information arrives messy.
You need AI automation when information arrives messy
Turn spoken updates, emails and scattered notes into tidy records. Your team talks through what happened with a client, and AI puts each detail in the right place.
You don't need AI when the work follows the same steps
Get reports, reminders and session counts that come out right every time. Software built for the job handles them on its own.
Either way, keep your client information in a database you own. An AI chat forgets older details as the conversation grows, while a database lets you look up any client years from now.
Can AI write my client reports?
She showed us a progress report she makes with AI for clients at renewal time, and asked whether her new software could create it for her.
Yes, and it may not need AI to. I asked AL whether those reports could simply be a template, filled in automatically from her own data.
"Absolutely. That's not requiring any AI whatsoever."
AL Del Degan, CTO
That one answer could save her an AI bill every month.
What does AI automation cost to run each month?
She wanted to know what she'd pay each month after the build, and how support is charged: "Is it by the hour? Is it kind of by the task?"
Know the monthly cost of hosting, maintenance and AI before you choose.
Software you own
AL put hosting at about $20 to $50 a month in total, not per user. If you add AI, you pay per use, often pennies each time.
Tools you rent
Most tools charge per user, per month, for every system underneath your automation. The bill grows each time you add a team member.
Get support as a monthly maintenance package sized to what you run, rather than a bill for every task. Packages are sized to cover almost every month, with hourly work only in rare cases.
Choose the AI model that fits each job, because the newest model isn't always needed. Well-built software can switch AI providers without a rewrite.
If your company is Canadian and the work is new, your project may qualify for government funding such as SR&ED tax credits and IRAP. Connecting off-the-shelf tools usually doesn't qualify.
For the full picture, see our App Development Cost guide.
Is it safe to put client data into ChatGPT?
She'd been running parts of her business through her own AI subscriptions.
Keep client data safe by using a business AI plan or AI built into your own software. Free AI accounts are not designed for private client information, and privacy laws like PIPEDA in Canada set rules for how you handle it.
Business plans like Claude Team cost about $140 per person, each month, and ChatGPT's business plans are priced similarly.
AI built into your own software is the other option. For a team that uses it a few times a day, it usually costs far less than a plan for every person.
How many AI agents does a small business need?
She asked, "What would it be like to have our own [business] agent?" She wanted one her team could ask questions and report their sessions to.
Start with one agent you can trust. Every agent you add is one more thing to look after, so a few reliable ones serve you better than many.
Agree before launch how you'll measure whether it's getting things right, and test it thoroughly before your customers see it.
When does AI automation need a person to check it?
She asked how client consent and intake forms would work in the new software.
Keep a person in the loop wherever a mistake would really matter. Our AI specialist once worked on a project where AI recommended settings for a water treatment plant, and an engineer still confirmed every recommendation.
The sweet spot is work where AI does the heavy lifting and a person checks it quickly. Ask yourself which checks your software should handle and which ones belong to someone on your team.
What should you ask before you pay for AI automation?
Start with the three questions she asked before deciding.
Will it work with the tools I already use?
AI automation needs tools to connect to. If your work lives on paper and spreadsheets, start with software that keeps clients, bookings and payments in one place, then add AI.
Who owns what gets built?
Software you own becomes part of your business, and it can add to what your business is worth when you sell.
Do I have to pay for it all up front?
Ask whether you can pay as the work happens. Some developers let you fund the build monthly, so it moves at the pace your budget allows.
Who wrote this?
Rea Hailley, CEO of New Idea Machine, with AL Del Degan, CTO.
AL has 33 years building software, including work with the Calgary Airport Authority, the City of Calgary, and Travel Alberta.
What else do business owners ask about AI automation?
Who writes the consent wording for client forms?
Your lawyer writes the wording. Your software can then collect e-signatures and store the signed copies, so there's no paper to file.
Can I build an AI tool for my business myself?
Yes, you can start on your own. Our Build your internal tools or prototype bootcamp shows you how to build a working prototype with a no-code tool like Lovable.
Not sure which parts of your business need AI?
See your options side by side, including what each costs now and later.
Start the conversationNot ready for a meeting? Answer simple, non-technical questions about what you need with our App Cost Calculator.