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Outsourcing · 6 min read

How to Hire AI Developers: Roles, Skills, a Paid Test Task and Red Flags

How to hire AI developers: AI engineer vs ML engineer vs LLM developer, a skills checklist, a paid test task, interview questions, red flags and rates.

Zain Khalid MalikZain Khalid MalikCTO & Co-founder, Innovation InsightPublished
Close-up of colour-highlighted source code on a dark screen

Short answer

Decide first which role you need: an LLM application developer for chat, RAG and agents on hosted models, an ML engineer for training and serving your own models, or an AI engineer who covers both. Then run a paid four-hour test task with an evaluation set, ask how they measure quality and cost, and reject anyone who cannot. Innovation Insight's senior AI engineers cost $4,800 to $6,600 a month ($30 to $41 an hour).

Three roles that get called "AI developer"

Most failed AI hires start with the wrong job title. A founder who needs a support assistant over their documentation hires a PhD who wants to train models, or a team that needs a demand forecast hires a prompt engineer. Pin down the work first.

RoleWhat they buildCore skillsHire when
LLM application developerChat assistants, RAG over your data, agents with tool calls, document extractionTypeScript or Python, model APIs (OpenAI, Anthropic, Gemini), vector search, prompt and output design, evaluationYou want features on top of hosted models; this is most AI product work in 2026
ML engineerTrained models: forecasting, classification, recommendation, computer visionPython, scikit-learn, PyTorch, feature pipelines, model serving, drift monitoringYou have your own labelled data and a prediction problem
AI engineer (hybrid)Both, plus the infrastructure: model gateways, caching, fine-tuning where it paysAll of the above plus MLOps and cost controlAI is the core of the product and you need one senior owner
Data engineerThe pipelines that feed all of the aboveSQL, dbt, Airflow or Dagster, warehousesYour data is not yet in one clean place

If you are not sure, read RAG vs fine-tuning first: most teams that think they need a fine-tuned model need retrieval and a good evaluation set. For agent work in particular, our AI agent developers are LLM application developers who specialise in tool use, workflows and guardrails.

Skills checklist for an LLM application developer

  • Evaluation: can build a test set of 50 to 200 real questions with expected answers, score outputs automatically and with an LLM judge, and track regressions per prompt or model change.
  • Retrieval: chunking strategies, embeddings, hybrid keyword and vector search, reranking, and how to measure retrieval separately from generation.
  • Structured output: JSON schemas, tool calling, validation and retries when the model returns something invalid.
  • Cost and latency: token budgets, caching, streaming, picking a smaller model where it scores the same, per-request cost logging.
  • Safety: prompt injection through retrieved documents, data leakage between tenants, refusing out-of-scope requests, human review for high-risk actions.
  • Ordinary engineering: an API in FastAPI or Node, a queue for slow jobs, tests, logging and deployment. AI features fail more often from missing basics than from bad prompts.

A paid test task that separates demos from production

Pay for it: four hours at the candidate's rate is cheap compared with a bad hire, and good engineers decline unpaid take-homes. Ours, used in our own vetting, is close to this:

  1. Give the candidate 30 to 50 documents (policies, product docs) and 20 questions with reference answers.
  2. Ask for a small service that answers questions with citations to the source document.
  3. Require an evaluation script that scores answers against the references and reports accuracy, citation correctness and cost per question.
  4. Ask for a one-page note: what they tried, what failed, what they would do with another week.
What you seeWhat it tells you
An eval script with numbers before and after each changeThey work like an engineer, not a demo builder
Cost per question reportedThey will not surprise you with a model bill
Answers that say "I don't know" when the documents do not cover itThey understand grounding and hallucination
A note that names a failure honestlyThey will tell you when something does not work
A polished UI and no evaluationA red flag: the hard part was skipped

Interview questions worth asking

  • "Walk me through how you knew an AI feature you shipped was good enough to release." Listen for an eval set and a threshold, not "we tested it".
  • "A customer says the assistant gave a wrong answer. What do you do in the next hour?" Listen for traces, retrieval inspection and adding the case to the eval set.
  • "How would you stop a document in the knowledge base from instructing the model to do something harmful?"
  • "When would you not use an LLM for this?" Good candidates suggest rules, search or a classic model when they are cheaper and more reliable.
  • "What did your last AI feature cost per user per month?"

Red flags

  • Portfolio of chat demos with no production users or numbers.
  • Talks about fine-tuning before asking what data you have.
  • No opinion on evaluation, or "we checked it manually".
  • Framework enthusiasm without understanding: can describe LangChain classes but not what the prompt actually sent was.
  • Ignores tenant isolation, PII in prompts or logging.

What AI developers cost

LevelExperienceMonthly (full-time)Hourly
Mid-level3 to 5 years$3,600 to $4,800$23 to $30
Senior5 to 8 years$4,800 to $6,600$30 to $41
Lead8+ years$6,600 to $7,800$41 to $49

These are our published rates for AI and ML engineers, all-inclusive with equipment, HR and a two-week replacement guarantee. For a fixed scope instead of a monthly engineer, a single AI feature in an existing product typically costs $8k to $60k and an AI MVP $25k to $60k. The AI agent cost calculator prices agent builds and their running costs. If your AI service will be in Python, a FastAPI developer is often the right second hire.

What our AI teams have shipped

  • GovDoc AI: a RAG pipeline on AWS Bedrock with Claude for structured extraction of 50+ data points from government contracts, with a self-correcting three-pass analysis.
  • Chat Your History: chat, SMS and phone interviews turned into memoir chapters with streaming GPT-4 generation.
  • Cuts Like A Knife: a Python FastAPI machine-learning search service with OpenL3 audio embeddings and OpenAI.
  • Treasure Island AI: a React Native app with an AI counsellor persona and a brainstorming engine generating up to 30 questions per idea.

More on how we scope this work is on our AI agent development page, and how we use Claude Code on client projects explains how AI coding tools fit into our own delivery.

Freelancer, marketplace, agency or in-house?

RouteGood forWatch out for
FreelancerA short, well-defined prototypeNo cover when they are unavailable; evaluation and security often skipped
Talent marketplaceFast access to vetted individualsRates well above offshore agencies; you still manage the work
Agency or dedicated teamProduction features with QA, DevOps and a delivery lead around the AI engineerCheck that the named engineer is the one doing the work
In-house hireAI is your core product and you need long-term ownershipSenior AI hires take months to find; a first hire without an AI lead above them is risky

The first 30 days with a new AI developer

  1. Week 1: access to data and systems, a written definition of the first feature, and 50 real examples of inputs with the outputs you would accept.
  2. Week 2: a baseline: the simplest version that works, scored against those examples, with cost per request logged.
  3. Week 3: improvements driven by the scores (better retrieval, a different model, structured output), each one measured.
  4. Week 4: guardrails, monitoring and a release to a small group of real users, with a way for them to flag bad answers.

If, after a month, you cannot see a score that moved and a cost per request, something is wrong with the hire or the brief. Both are fixable, but only if you notice early.

Sources

Need a number for your project?

Send a short brief and get a written estimate.

A senior engineer replies within one business day. No sales call required.

Zain Khalid Malik, CTO & Co-founder, Innovation Insight

Zain Khalid Malik

CTO & Co-founder, Innovation Insight

Zain owns architecture, engineering standards and the platform team at Innovation Insight. He sets the bar for code quality, security and the tooling every squad ships with.

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FAQ

Related questions.

How much does it cost to hire an AI developer?

With us, $3,600 to $4,800 a month for mid-level, $4,800 to $6,600 for senior and $6,600 to $7,800 for a lead, all-inclusive.

Do I need an ML engineer or an LLM developer?

If you are building on hosted models (chat, RAG, agents), an LLM application developer. If you are training models on your own data for predictions, an ML engineer.

Should the test task be paid?

Yes. Four paid hours is cheap insurance, and strong candidates often decline unpaid take-home work.

What is the biggest red flag?

No evaluation. A candidate who cannot show how they measured quality before release will ship features you cannot trust or improve.

How fast can an AI engineer start?

Five to ten business days after you approve a candidate, with a free replacement within two weeks.