The item doesn't need the Qi, the crafter does.
Edit: The amount of Qi depends on the materials of whatever you're trying to turn into an artifact, btw. The very first artifacts made by a brand-new inner are going to be shitty (possibly literally - poop is a valid artifact), but only require a couple hundred Qi. As you get stronger and stronger inners, you can move up to more exotic materials.
More specifically, the Qi cost depends upon the tier of the item you are crafting.
Offcut is a common tier-1 item that can be obtained in any element easily early on, making it a popular choice for first artifacts.
The Qi within the material does actually impact the final result, and yes the method for building it up is just to put a pedestal in the middle of a cultivation room. However, you need a LOT of Qi just to get small returns, making it not at all worthwhile early on. Also, the stat affected is the Max Qi of the final artifact, which some people prefer to keep low to take advantage of the negated excess damage when an artifact gets drained.
For branches and agencies don't I need to dedicate an inner or outer to running them? I'm pretty low on manpower right now and not sure how to get more people outside of random events.
Edit: Also, for creating artifacts it seems I need an object with a rather ludicrous amount of Qi. How is this achieved? With a room just like the cultivation one but with a display at its center for the item of choice?
You need to send an outer disciple. See my post directly above yours, recruiting people is fairly easy once you get the social minigame figured out. You can try to learn the favorites of various sect leaders while your at it, which will allow you to gain access to their areas.
Herbs, abilities from other laws, and breaking through are the ways to boost your cultivator's Qi pool. Another reason to get started on that herb garden asap!