What does custom software cost in NZ now that AI writes the code?

Custom software is often assumed to be for big companies, and an earlier quote may have sent you back to your spreadsheet. AI coding tools have changed some of the costs, so it is worth checking again. Small custom jobs may now be within reach of a smaller business, depending on the scope.

I won't put dollar figures on this page, because the cost depends on what you need. Below is where the money goes, what AI has changed, and how to size a small project.

Where the money used to go

Before AI coding tools, a custom software project typically had four big cost drivers, and most were about people and time rather than computers.

• Team size. A typical project needed a project manager, a designer, one or more developers and a tester. Each billed time, and each handover between them cost more.
• Hand coding. Developers wrote every screen, button and rule, which took time even on routine parts.
• Long specifications. Changing code late was expensive, so everyone insisted on a detailed document first. Writing and arguing over it could take weeks before anything was built.
• Rework. The finished product often missed, because you only know what you want when you can click on it. Fixing that meant another round of the same expensive process.

What AI changed

AI coding tools can write routine code faster than a person types it. For a small business that can change three things.

First, a small senior team can sometimes deliver what used to need a larger one. I have thirty years as an analyst, CTO and project manager, and I work with two senior AI developers, both in Nelson. I talk to you and design the job. We build and test it together. With fewer handovers there is usually less waiting.

Second, a first working version of a small job can sometimes exist much sooner than a fully specified build, depending on the scope. Instead of describing something in a document and hoping, you click on a real prototype and say "no, not like that". Changes at that stage tend to cost less than changes after a long specification phase.

Seeing a working prototype early makes changes cheaper than they would be after a long specification phase.

Third, some small jobs may now be worth building. A tool that reads supplier emails and fills in a stock sheet, or a page that takes a booking and sends a confirmation, could once have fallen below the line where a project made sense. The custom software development page shows what that looks like in practice.

What custom software still costs money for

AI hasn't made software free. These parts still take real time.

Understanding your business

Software that doesn't match how your business works is worse than none. Someone has to sit down with you, watch how a job really gets done, and learn the exceptions: the customer who always pays cash, the supplier who sends price lists as photos. AI can't do that listening for us, and it's often the most valuable part of the project.

Integration with what you already have

Most businesses already run Xero or MYOB, a calendar, email, maybe a job management tool. New software has to talk to these, and each connection has quirks, limits and rules. This is a common reason projects run longer than hoped. Read about systems integration to see how we approach it.

Testing

AI writes code quickly, and it writes mistakes quickly too. Someone has to check that the quote adds up, that the GST is right, and that an odd input doesn't break the page. We don't skip testing, and a person stays in charge of what goes live.

Hosting and upkeep

Software runs somewhere, and that costs something, usually small but never zero. Things also change underneath it: a service you connect to updates its rules, a security patch is needed, or your business wants a new field. Budget for upkeep the way you budget to service a vehicle.

Off-the-shelf subscription or custom?

Custom isn't always the answer. A subscription is the right call when your need is common and the product already does it well. Accounting is the obvious example: use Xero or MYOB and don't build your own. This table shows how I think about the choice.

Many businesses end up with a mix: a subscription for the standard things and a small custom tool for the one process that makes them different. The custom tool often connects to the subscription, so your data stays in one place.

How to scope a small first project

The most sensible way to find out what custom software costs for your business is to start small.

1. Pick one painful job that happens often and annoys someone, like re-keying orders, chasing quotes or building a roster.
2. Write down who does it and how long it takes. Hours per week is enough. It's also your baseline for working out whether it paid off, and the ROI calculator helps with the arithmetic.
3. List what it must connect to. Each connection adds work. Two or three is manageable for a first project.
4. Decide what "done" looks like in one sentence: "A customer fills in a form and a quote lands in my inbox."
5. Ask for the price in writing before work starts. A scope both sides have agreed keeps the project tight.
6. Ask what hosting and support look like after it goes live, and who to call.

That's what starting small looks like. If the first job works, add the next one. Software that stays in use usually needs adjusting as the business changes. If the first job doesn't work, you've committed little.

Warning signs in a quote

• No mention of testing or of who checks the output.
• No plan for what happens after launch.
• A long specification phase before anyone shows you anything working.
• Vague language about integration with Xero, MYOB or whatever else you use.

A hypothetical example

Say a joinery shop owner spends about six hours a month turning customer emails into quotes (a made-up figure, not a client). A quoting tool means paying for the build, connecting it to the accounting software, testing it on past jobs and paying for hosting. The hours given back have a time value, but that is cash saved only if they reduce paid hours or are spent on paid work. Compare the cash costs with the cash benefit you can realistically expect over a couple of years, and leave the idea alone if they do not line up. You can do this sum before you talk to anyone.

To see a finished piece of this kind, try the AI quote builder demo, or read about AI automation for the repetitive jobs around your business.

Next step: see how pricing works, or find examples for your business.