The short answer
Building custom software with AI is now cheaper than licensing it for many teams. Ian Kilpatrick built the learning management system his school runs on using Claude, Claude Code, and an agent on the server, having never seen an LMS before. Alec Saluga estimated the same build would have cost $50,000 to $100,000 custom.
Should you build custom software with AI instead of buying it?
The old answer was obvious: buy it. Building custom meant a budget, a team, and months. So you licensed something close enough and lived with the gaps.
Ian Kilpatrick's wife needed a way for parents and students to log in, check enrollment, and see classes, and for teachers to enter them. What she was describing was a learning management system. Ian had never seen one, because he graduated before they existed.
He built it anyway. Saints Classical, a classical tutorial in Middle Tennessee, now runs on it.
How do you build something you have never seen before?
The first move was not writing code. It was asking. Ian went to Claude saying he did not know what he was doing, and it walked him through how Google Classroom, Blackboard, and Blackbaud each handle it. He pulled the parts he liked and discarded the rest.
That is the whole trick, and it is why not knowing the category turned out not to matter. The AI has seen every LMS. You supply the taste and the requirements; it supplies the reference.
The first version launched to 95 students. For the second, Ian installed an agent directly on the server to help build the next iteration, and to keep helping after launch: when a problem comes in, he pastes his wife's text to the agent, tells it to fix the issue and email the parent when it is done, and it does.
“I basically started brainstorming with Claude, and then Claude Code, and built the first iteration of the LMS.”
Ian Kilpatrick · 33:38
What does custom software cost now?
Alec's estimate is the useful anchor. Ten years ago this system meant licensing something for tens of thousands a year, or paying $50,000 to $100,000 to have it built custom.
That is an estimate of the alternative, not an invoice Ian paid. What he actually spent was his own time plus AI tooling. The comparison is the point: the build-versus-buy math that held for two decades has inverted for a large class of internal software.
And what he got is not a compromise. It takes tuition, handles enrollment and club signups, has its own email system, and has Slack-style groups built in. No unused features, and nothing missing.
“you're probably in the 50 to $100,000 range for custom building”
Alec Saluga · 38:14
What did the AI-written blog actually do?
The agent on the server set up the school's blog and posts to it 2 to 3 times per day, written in a persona attributed to C.S. Lewis and scoped to what the school actually teaches. It is now over 300 posts, maybe around 350.
The goal was E-E-A-T: enough expert, experienced, authoritative, trustworthy material for Google to recommend the school higher. People find the articles, and because they are relevant to the curriculum, some of those readers end up signing up.
Enrollment went from 95 students to over 230 for the next year, roughly two and a half times. Ian's own framing is worth keeping intact rather than tidying up: he credits programmatic SEO and AI automation "largely", and then immediately says "I don't know if that's normal. I mean, she's done a great job on the school itself." AI helped quite a bit. It did not do it alone, and he is the first to say so.
Frequently asked questions
Can AI really build custom software?
It built the platform a real school runs on. Ian Kilpatrick had never seen a learning management system, brainstormed the requirements with Claude, built the first iteration with Claude Code, and used an agent on the server for the second. It handles enrollment, tuition, classes, lesson plans, email, and messaging.
How much does it cost to build custom software with AI?
Alec Saluga estimated on Session 006 that the same system would have cost $50,000 to $100,000 to build custom before AI, or tens of thousands a year to license. That is an estimate of the alternative, not what Ian paid; his cost was his own time plus AI tooling.
Do you need to be a developer?
Ian is a designer and developer, so he is not a beginner. But the load-bearing skill here was not coding, it was not knowing what an LMS was and asking the AI to explain how existing ones work, then choosing. He went in saying he did not know what he was doing.
Did the AI blog cause the enrollment increase?
Partly, and Ian is careful about this. He says the increase from 95 to over 230 students is "largely because of programmatic SEO and this AI automation", then immediately adds "I don't know if that's normal. I mean, she's done a great job on the school itself" and "I will say AI has helped quite a bit." The school's own quality is part of the story.
Should you build or buy?
Buy when an off-the-shelf tool genuinely fits. Build when you are stitching five tools together to approximate what you need. Ian's system replaced what would have been an LMS plus Slack plus an email tool plus a payments flow, and every feature exists because he needed it.
Where this came from
32:22 Ianmy wife and I started working on a school last February, so a year and a half ago... it's called Saints Classical. It's a classical tutorial in Middle Tennessee.
33:38 IanI basically started brainstorming with Claude, and then Claude Code, and built the first iteration of the LMS. And then the next year came around, so we launched with 95 students
33:38 IanI actually installed an OpenClaw on the server to help me build the next iteration of the LMS
36:18 Ianhe's actually set up his blog, where he posts 2 to 3 times per day. And it's all attributed to C.S. Lewis... it's now over 300, maybe around 350 blog posts
36:18 Ianlargely because of programmatic SEO and this AI automation, we're actually launching the school with over 230 students for this next year, so a two and a half times increase in enrollment. I don't know if that's normal. I mean, she's done a great job on the school itself.
37:34 IanBut I will say AI has helped quite a bit with that.
38:14 Alecyou're probably in the 50 to $100,000 range for custom building
39:12 Ianit's way beyond an LMS because it takes tuition. It allows enrollment and even clubs to sign up if people want to pay. It also has its own email system.