If you're new to n8n, this post will save your business.
Every tutorial skips the part where costs spiral out of control.
I've built 30+ AI agents with n8n and tracked every dollar spent.
Here's the brutal truth about costs that nobody talks about:
1. The hidden cost killer: API calls.
Your "simple" customer service agent makes 15+ API calls per conversation:
3 calls to check context
4 calls for intent classification
5 calls for response generation
3 calls for follow-up logic
At $0.002 per call, that's $0.03 per conversation. Sounds cheap until you hit 10k conversations.
2. n8n's biggest cost trap: polling nodes.
Every 15 seconds, your workflow checks for new emails, Slack messages, database updates. That's 5,760 executions per day doing nothing.
Switch to webhooks. I cut execution costs by 80% just by replacing poll-based triggers with event-driven ones.
3. Memory costs more than compute.
Storing conversation context in n8n's database gets expensive fast. A 3-month conversation history for 1000 users = ~$200/month in execution costs just for memory retrieval.
Solution: Use external Redis or Supabase for context storage. Execution costs drop to $12/month.
4. The 90/10 rule kills budgets.
90% of your agent costs come from 10% of edge cases. Complex error handling, retry logic, multi-step reasoning chains.
I now build "dumb" agents first. Handle the happy path perfectly. Add complexity only when usage justifies the cost.
5. LLM model choice makes or breaks economics.
GPT-4: $0.03 per 1K tokens
Claude Sonnet: $0.003 per 1K tokens
Llama 3.1 (via Groq): $0.0002 per 1K tokens
Same agent, 150x cost difference. Most use cases work fine with cheaper models. Test extensively before committing to premium APIs.
6. Execution time = money.
n8n charges per execution second. Inefficient workflows cost 10x more than optimized ones.
Quick wins:
- Combine API calls with HTTP Batch node
- Use Switch nodes instead of multiple IF branches
- Cache frequently accessed data
- Set proper timeouts (don't wait 60s for failed API calls)
Google just dropped a 64-page guide on AI agents that's basically a reality check for everyone building agents right now.
The brutal truth: most agent projects will fail in production. Not because the models aren't good enough, but because nobody's doing the unsexy operational work that actually matters.
While startups are shipping agent demos and "autonomous workflows," Google is introducing AgentOps - their version of MLOps for agents. It's an admission that the current "wire up some prompts and ship it" approach is fundamentally broken.
The guide breaks down agent evaluation into four layers most builders ignore:
- Component testing for deterministic parts
- Trajectory evaluation for reasoning processes
- Outcome evaluation for semantic correctness
- System monitoring for production performance
Most "AI agents" I see barely handle layer one. They're expensive chatbots with function calling, not robust systems.
Google's Agent Development Kit (ADK) comes with full DevOps infrastructure out of the box. Terraform configs, CI/CD pipelines, monitoring dashboards, evaluation frameworks. It's the antithesis of the "move fast and break things" mentality dominating AI development.
The technical depth is solid. Sequential agents for linear workflows, parallel agents for independent tasks, loop agents for iterative processes. These patterns matter when building actual business automation, not just demos.
But there's a gap between Google's enterprise vision and startup reality. Most founders don't need "globally distributed agent fleets with ACID compliance." They need agents that handle customer support without hallucinating.
The security section is sobering. These agents give LLMs access to internal APIs and databases. The attack surface is enormous, and most teams treat security as an afterthought.
Google's strategic bet: the current wave of agent experimentation will create demand for serious infrastructure. They're positioning as the grown-up choice when startups realize their prototypes can't scale.
The real insight isn't technical - it's that if you're building agents without thinking about evaluation frameworks, observability, and operational reliability, you're building toys, not tools.
The agent economy everyone's predicting will only happen when we stop treating agents like chatbots with extra steps and start building them like the distributed systems they actually are.
The guide reveals Google's three-path strategy for agent development.
Most teams are randomly picking tools without understanding these architectural choices.
Here's what nobody talks about: agent evaluation isn't just "does it work?" Google breaks it into 4 layers that expose how shallow most current agents really are.