Hiring guide
Hire an AI engineer: permanent, contract, team or build
You can add AI engineering capacity in four ways: employ an engineer, contract a freelancer, bring in a staffed team from a supplier, or buy a fixed-scope build. Employing someone usually takes longest to start, because of the search and the candidate's notice period, but the knowledge stays in the company. A contractor or a staffed team can usually start sooner, and you still decide what they work on. A fixed-scope build buys a defined output rather than time, and the supplier manages the people. The trap is copyright: in both the UK and the US, code a contractor writes starts out as theirs unless a signed written agreement transfers it to you. Choose on how well the work can be defined, who will manage it, and what you need to keep when it ends.
Hiring an AI engineer. Adding people who build and run AI systems to an organisation, by employing them, contracting them, bringing in a staffed team from a supplier, or buying a defined build.
Checked . UK employer rates and guidance were read on GOV.UK, US employer tax and worker classification guidance on IRS.gov, and the copyright provisions on legislation.gov.uk and copyright.gov, on this date. Rates and thresholds are set for each tax year and the guidance is updated, so check the current figures before you rely on them. This guide is not legal or tax advice.
The four routes side by side
These are the questions I would want settled before anyone starts, whichever route you take. The numbers in brackets point to the sources at the foot of the page. The table describes each route as the market sells it; what 1AYM offers comes after the decision guide.
| Dimension | Permanent hire | Freelancer or contractor | Staffed team on contract | Fixed-scope build |
|---|---|---|---|---|
| What you are buying | An employee's time and commitment, with no end date | One person's time, for a period you agree | People's time from a supplier, which finds them and covers gaps | A defined output, against a price and acceptance criteria agreed up front |
| Before work can start | A search, interviews and an offer, then the notice period the candidate owes their current employer | Finding and interviewing the person yourself, then a contract that settles copyright and handover | Agreeing roles and a contract with the supplier, which does the finding and matching | Writing and agreeing the scope, the price and the acceptance criteria |
| Who directs the work day to day | You | You set what is needed; how it is done is usually left to the contractor | Usually you, in your own backlog and stand-ups | The supplier, working to the specification you agreed |
| If someone leaves or is wrong for the role | You recruit again | You find a replacement | The supplier replaces them, where the contract provides for it | The supplier staffs the delivery, so it finds the replacement |
| Who first owns the copyright in the code [7, 8, 9, 10] | Your company, for work made as part of the job, unless agreed otherwise | The contractor or their company, until a written agreement they sign transfers it to you | Whoever the contracts say: check they transfer it to you, including from anyone the supplier subcontracts | Whoever the contract says: check it transfers the output to you |
| What stays when it ends | The knowledge, for as long as the person stays | Whatever was written down and handed over, so put a handover in the contract | Whatever was handed over, so agree the handover in the contract | The deliverables and documentation the statement of work lists |
| What drives the cost [3, 4, 5] | Salary, employer payroll taxes, pension or other benefits, recruitment fees, equipment, and the time a new hire takes to learn your systems | A rate for time, plus your own cost of finding, onboarding, managing and replacing people | A rate for time for each person, which also pays for the supplier's hiring, cover and review | One price for a defined output, agreed before work starts |
| Fits best when | The work is ongoing, central to your product, and needs an owner for years | You need one specific skill for a known period, and have a lead to manage it | A programme needs several roles now, directed by your own leads | You can describe the work well enough to put a price on the output |
Employing an AI engineer
Employ someone when the work is permanent and central: an AI capability your product depends on, which somebody has to own, improve and answer for over years. The knowledge stays in the company for as long as the person does, and in both the UK and the US the employer owns the copyright in work an employee makes as part of their job, unless you agree otherwise [7, 9, 10].
It is also the route with the most fixed cost, and salary is only the start of it. On top of salary, the employer pays payroll taxes and benefits. In the UK, for the 2026 to 2027 tax year, an employer pays National Insurance at 15% on an employee's earnings above £5,000 a year, and an employer with an annual pay bill over £3 million pays Apprenticeship Levy at 0.5% of it, less a £15,000 allowance [3]. UK automatic enrolment adds at least 3% of qualifying earnings into a workplace pension; in most schemes those are earnings between £6,240 and £50,270 a year [4]. In the US, the employer pays its own share of Social Security and Medicare taxes, and federal unemployment tax from its own funds [5]. Then add any recruitment fee, equipment, and the time a new hire takes to learn your systems.
The start date depends on the search and on the notice period the candidate owes their current employer, neither of which you fully control. Hire first for the role that will own the work once any outside help has gone. I would not make a first AI hire with nobody senior to review their work: that hire carries the same single-person risk as a contractor, with a longer exit.
Contracting a freelancer or contractor
A contractor gives you one person's skill for a defined period, often through their own company. You find, interview and manage them, and if they leave, replacing them is your job too. Their rate pays for their time. Recruitment, onboarding, review and cover are still yours to provide.
Settle two things in the contract before the first day. The first is copyright, because it is the one you cannot fix cheaply once the contractor has gone. UK law treats a computer program as a literary work [6], and in both the UK and the US the author owns the copyright first unless they are an employee working in the course of their job [7, 9, 10]. A contractor is not your employee, so the code is theirs until they transfer it to you, and a transfer of copyright only takes effect in writing, signed by the owner or on their behalf [8, 10]. The second is handover: what they leave behind, in what form, and who checks it before their last day.
HMRC in the UK and the IRS in the US each publish tests for whether a contractor counts as self-employed for tax, and both look at the whole working relationship, not only the contract [1, 2]; this is not legal or tax advice.
A staffed team on a headcount basis
Here a supplier provides the people: one engineer or several, on a contract for a period, charged for their time. The supplier does the finding and matching and replaces someone who is not working out, so the roles do not wait on your own hiring round. Buyers often call this staff augmentation. Your own leads usually direct the work, and that is what separates it from outsourcing, where the supplier directs the people and delivers a service.
It works best when you already have technical leads and a backlog ready to work on. Done well, it adds senior hands to a team that already knows what it is building, without waiting on a hiring round. What decides whether it is done well is the supplier's bar: how it vets people, who reviews their work, and how quickly it replaces someone who is not the right fit. Ask about all three before you sign.
Buying a fixed-scope build
When the output can be written down, buy the output. A fixed-scope build is priced against a deliverable, with acceptance criteria in the statement of work, and the supplier decides who does the work and manages them. You direct what gets built, not how the supplier's people spend their day.
It is the wrong buy when the work cannot yet be defined, because a price against a vague output is either padded or wrong. That is what a short feasibility sprint is for: it settles what to build, so the build can then be priced against an output.
Which route to look at first
Start from the situation you are in, not from the route. The table gives a first answer for four situations, one for each column in the comparison above.
| Dimension | Look at first | Why |
|---|---|---|
| The work is permanent and central to your product | A permanent hire | Someone has to own it for years, and the knowledge should stay in the company |
| You need one specific skill for a known period, and have a lead to manage it | A freelancer or contractor | You pay for the skill only while you need it; settle copyright and handover before the first day |
| A funded programme is waiting on several roles | A staffed team on contract | The supplier does the finding and covers gaps, and your own leads direct the work |
| The output can be written down and priced | A fixed-scope build | You buy the result and the supplier manages the people |
Two situations fit none of the four columns cleanly. If nobody owns the architecture or the technical decisions, find someone to take those decisions now and write them down for the people you hire later, or every route inherits the gap. If you cannot yet say what to build, a short fixed-scope feasibility sprint turns the idea into an output that can be staffed or priced.
The routes also combine. A fixed-scope sprint can define the work, contracted capacity can build it, and a permanent hire can own it afterwards. So decide first who will own the system in two years' time, then choose the routes that hand it to them.
Where 1AYM fits
Where the work can be written down, we build it on a fixed scope, priced against an output rather than time, and the build can start within a day of the scope being signed. If you cannot yet say what to build, our AI opportunity and feasibility sprint settles it, typically in two to four weeks, and a fixed-scope architecture and production build then ships it. Where the contract needs it, copyright in the deliverables is assigned to you.
If you already have a scoped job and need people to deliver it, we can resource it from the collective of associates who work with 1AYM, held to the same standard as the rest of the firm, on a contract from three months. That is the staffed-team route from the table above, and it suits a team whose leads already know what they are building. You direct the work day to day, in your backlog and your stand-ups. One of our architects reviews it each week, and a role can be changed or added under the same contract.
When what is missing is someone to own the architecture and the build rather than extra hands, a retained AI implementation team is the closer fit. It holds the architecture and the vendor and model decisions, builds alongside your engineers and hands the platform over to them. And if the honest answer for you is a permanent hire, hire. The comparison above does not change because we sell two of its columns.
For engineers: access, IP and handover checks before day one
Whichever route you choose, these controls decide whether the work is still yours when the people change. Every one of them can be checked in configuration or in the contract, so none of them rests on someone's word.
- Accounts and keys
- Model provider accounts, API keys and cloud projects belong to your organisation, not to an individual or a supplier. Give each outside engineer their own identity, and revoke it on their last day.
- Least privilege
- Grant repository and data access by role, scoped to the work. Keep production data out of development unless the work needs it and its data protection basis is settled.
- What the assignment names
- List source code, prompts, evaluation datasets, model configuration and infrastructure as code in what the contract transfers to you, not only software. Check that it reaches anyone the supplier subcontracts.
- Your repositories
- Code, pipelines and infrastructure definitions live in repositories and environments you control from the first commit, so nothing depends on a system only the supplier can reach.
- Evaluation in CI
- Changes to prompts, models or tools run an evaluation suite in your CI against recorded thresholds, so quality does not leave with the person who tuned it.
- Decision record
- Architecture, vendor and model decisions are written down and dated as they are made, so the reasoning outlasts the engagement.
- Handover as a test
- Agree in advance what handover means: runbooks, an architecture overview, the evaluation suite, and one change your own engineers deploy without help. If they cannot ship that change, the handover has not happened.
Sources
- [1]GOV.UK, Employment status: self-employed and contractor, read 29 September 2026
- [2]IRS, Independent contractor (self-employed) or employee?, last reviewed 19 May 2026, read 29 September 2026
- [3]HMRC, Rates and thresholds for employers 2026 to 2027, last updated 1 September 2026, read 29 September 2026
- [4]GOV.UK, Workplace pensions: what you, your employer and the government pay, read 29 September 2026
- [5]IRS, Understanding employment taxes, last reviewed 1 May 2026, read 29 September 2026
- [6]Copyright, Designs and Patents Act 1988, section 3: literary works, including computer programs, read 29 September 2026
- [7]Copyright, Designs and Patents Act 1988, section 11: first ownership of copyright, read 29 September 2026
- [8]Copyright, Designs and Patents Act 1988, section 90: assignment and licences, read 29 September 2026
- [9]US Copyright Act, 17 U.S.C. section 101: definition of a work made for hire, read 29 September 2026
- [10]US Copyright Act, 17 U.S.C. sections 201 and 204: ownership, works made for hire and transfers in writing, read 29 September 2026
Hiring questions
How long does it take to hire an AI engineer?
For a permanent hire, it depends on the search and on the notice period the candidate owes their current employer, neither of which you fully control. A contractor or a staffed team avoids the notice period, and a fixed-scope build can start once the scope, the price and the acceptance criteria are agreed.
Who owns the code a contractor writes for us?
In both the UK and the US the author owns the copyright first, and an employer owns work an employee makes as part of their job unless agreed otherwise. A contractor is not your employee, so you need a written agreement, signed by them, that transfers the code to you. Put it in the contract before work starts. Based on UK and US copyright law read on 29 September 2026; not legal advice.
What is the difference between AI staff augmentation and AI outsourcing?
Staff augmentation adds people who work under your direction, alongside your team. Outsourcing hands a defined service or output to a supplier, which decides who does the work and manages them. Neither is better in general: augmentation suits a team with its own leads and a backlog ready to work on, and outsourcing suits work that can be specified, priced and handed over.
Should our first AI engineer be a permanent hire?
Only if the work is permanent and someone senior can review it. A first hire with no technical lead above them carries the same single-person risk as a contractor, with a longer exit. Where nobody owns the architecture yet, settle that first, then hire for the role that will own the system.
Further
- Embedded Engineers on Contract · For a job that is already scoped: engineers inside your programme, on a contract from three months.
- Fractional AI implementation team · When you need a team that owns the architecture and the build, not only extra hands.
- Production AI systems · The fixed-scope architecture and build, when the output can be defined up front.
- Choosing an AI supplier · Four checks for any supplier you bring in: who writes the code, proof in production, controls, and what you keep.
We build these systems for a living. See the engagement files for what that looks like in practice, or write to us if yours is the next one.
Last reviewed · 1AYM