AI Agency vs. AI Service Provider — Which Partner Do You Really Need?
“We need an AI agency,” says the CEO. “No, more like a service provider,” says the IT manager. “Or just a consultant?” In reality, these terms describe different scopes of service. Here’s a clear distinction.
AI Consultant
Delivers: Analysis, strategy, use case selection, ROI estimation, tool/provider selection.
Does NOT deliver: Code, hosting, operations.
Price: €150-€300/hour or day rates €1,500-€3,500.
Useful if: You don’t yet know WHAT you should do with AI.
AI Agency
Delivers: Consulting + concept + implementation (often with tools like Make.com, n8n, OpenAI API). Often creatively marketing-driven.
PARTIALLY delivers: Code (often configuration rather than custom code).
Price: Project €8,000-€25,000, then ongoing fees.
Useful if: You want a specific, marketing-oriented application (chatbot, content AI).
AI Service Provider
Delivers: Complete software solution — custom code, hosting, maintenance, support. End-to-end responsibility.
Price: Fixed-price projects starting from €4,900, larger ones from €19,900. Optional ongoing maintenance.
Useful if: You want a productive, long-term AI solution — not a tinkering project.
AI Freelancer
Delivers: Specific skills (data science, ML, prompt engineering).
Risk: Single point of failure, often no operations, no substitution rights.
Price: €80-€180/hour.
Useful if: You have in-house expertise and only need specific, specialized work for a limited time.
Which Choice for Which Situation?
You don't know where to start → Consultant (short-term) → Service Provider (pilot)
You want a marketing chatbot → Agency
You want productive AI in a business process → Service Provider
You have your own IT, only need ML expertise → Freelancer
Frequently asked questions
What exactly is XH Group?
A service provider with an in-house engineering team. We build software, host it, and support it. No Make.com configurators, no pure consulting.
Can a service provider also consult?
Yes — and we do (free initial consultation). The difference: We don't charge for an 80-page consultant presentation; we quickly get to a working solution.
Contact
Let's talk about your AI project
30-minute free intro call. We'll review your use case and honestly tell you whether AI moves the needle here.