As per Forbes, ‘Around 4 in 5 companies deem AI to be the top priority’.
19 in every 20 customer interactions will be AI assisted by 2025.
Consider these 9 parameters to guide your strategic decisions:
The million-dollar question in the AI landscape remains: to build or to buy technology? The answer hinges on various factors, including the maturity, size, roadmap, vision, and mission of your organization. While there\’s no one-size-fits-all decision making technique, here are some general guidelines to help you make an informed decision:
1. Competitive Advantage:
If your sector has minimal AI implementation, buying technology can provide a first-mover advantage. However, if AI is poised to be your long-term differentiator, it\’s crucial to start building in parallel.
In sectors where AI is prevalent, building may be the only option to create a competitive edge, as purchased technology is accessible to competitors.
2. Supplementing Capabilities:
Partnering is beneficial when two companies possess complementary capabilities, such as one holding vast #data and the other excelling in #artificialintelligence. Collaborative efforts can lead to mutually beneficial outcomes.
3. Muscle Power:
If your organization has the capacity for significant AI investment, building your own capabilities is advisable. Dependence on external technologies may risk a loss of control, as exemplified by past mistakes made by some prominent companies. Yahoo vs Google in search technology is a good example.
4. Jump Start:
If your organization lacks AI capabilities and an in-house skilled workforce, buying AI capabilities in the form of products and services may serve as a short-term goal.
5. Security and Compliance:
Organizations with stringent policies against external data sharing for model training may find buying as the only viable option.
6. Complexity:
Assess the complexity of your problem. While certain tasks like creating embeddings may be manageable, developing large language models (LLMs) requires substantial investment. Your decision should align with the nature of the problem.
7. Availability of Talent:
Whether building or buying, consider the availability of talent within your organization. Opt for the path that aligns with your workforce\’s capabilities and expertise.
8. Total Cost of Ownership:
While the pricing of APIs may seem attractive initially, it\’s essential to consider the total cost of ownership. Evaluate future needs, infrastructure requirements, and maintenance costs before making a decision.
9. Integration with Existing Applications:
For purchased solutions, ensure seamless integration with existing applications. A user-friendly integration process is critical for maximizing the benefits of the acquired technology.
Remember, there is no one right answer—each organization\’s unique circumstances will guide the most suitable path forward.
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