Custom AI development as an eligible expense means that the support covers a bespoke solution built by a supplier, instead of buying a ready-made product. Calls generally allow this, but tie it to conditions: the output must already be clearly specified in the application, the price must be backed by a market survey or a procurement process, and after completion the solution must become the property of the beneficiary, not the supplier. The expense is booked as the acquisition of intangible assets and is depreciated, which also affects accounting. The risk is too loose a specification – if the scope changes during development, that is a change to the project, not a routine agreement with the supplier. Accepting the output therefore belongs in a formal acceptance procedure with a written record.
See also: Ready-made solution vs custom development, Website Acceptance Procedure, Intellectual Property Rights to an AI Solution.
