The market for generative AI applications is growing at an unprecedented pace, with businesses across industries recognising its transformative potential. According to a 2024 McKinsey survey, 65% of respondents say their organisations regularly use GenAI in at least one business function, up from one-third in 2023.
If your business is in the process of integrating generative AI into your operations, you may face a critical decision: should you build your own AI solutions, buy off-the-shelf products, or partner with an AI expert agency?
In this blog, we will explore the pros and cons of each approach and offers guidance on selecting the best strategy based on your business needs and objectives.
The Build Option: Customisation and Control
Building a generative AI solution in-house offers the greatest level of customisation and control. You can tailor the GenAI application precisely to your business needs, ensuring seamless integration with existing systems and alignment with your business goals. This approach is particularly advantageous for organisations with complex or unique requirements that off-the-shelf products might not adequately address.
Pros:
- Customisation: In-house development allows for a highly tailored generative AI solution designed to meet specific business needs and challenges.
- Control: Businesses maintain full control over the development process, including how data is handled and how the AI is integrated with other systems.
- Integration: The GenAI application can be built to fit perfectly within the existing IT infrastructure, minimising disruption and ensuring compatibility.
- Data Security: With in-house development, businesses have full oversight and control over data security measures, ensuring compliance with internal policies and industry standards.
Cons:
- Cost: Developing a generative AI application internally requires significant investment in both talent and resources. AI specialists, data scientists, and software developers are essential, and these roles come at a high cost.
- Time-Consuming: Building a GenAI solution from scratch is time-intensive, often taking months or even years to reach full deployment.
- Knowledge Gaps: Without sufficient expertise and expert consultation, there’s a risk of encountering knowledge gaps, leading to delays or suboptimal performance.
The Buy Option: Speed and Cost-Efficiency
Buying off-the-shelf generative AI tools can be an attractive option if your company is looking for a quicker and less resource-intensive route. These solutions are generally well-tested, reliable, and can be deployed rapidly, allowing businesses to start benefiting from AI with minimal delay.
Pros:
- Immediate Deployment: Off-the-shelf generative AI solutions can be implemented quickly, enabling businesses to start using AI almost immediately.
- Lower Upfront Costs: Compared to building in-house, buying an existing product typically requires a lower initial investment.
- Reliability: These generative AI applications are usually tested across various scenarios and have established performance records.
Cons:
- Limited Customisation: These generative AI solutions may not be customisable enough to meet the specific needs of a business, especially if those needs are complex or unique.
- Integration Challenges: Off-the-shelf GenAI tools may not integrate smoothly with existing systems, leading to potential operational disruptions.
- Dependency: Relying on a vendor for updates and support can create long-term dependency, with the business potentially constrained by the vendor’s roadmap and support quality.
- Data Security: With some off-the-shelf GenAI tools, businesses often have to store their data on the vendor’s servers, which may be located in different geographical regions or managed under different security protocols. This can raise concerns about compliance with internal policies and industry-specific regulations and where sensitive data is stored and who has access to it.
The Partner Option: Expertise and Tailored Solutions
Partnering with an expert generative AI company or agency offers a middle ground, combining the benefits of customisation with the speed and expertise of an experienced partner. This option is ideal for businesses seeking a generative AI strategy that is both highly tailored and efficiently implemented.
Pros:
- Expertise: GenAI agencies bring a wealth of experience and specialised knowledge, helping businesses avoid common pitfalls in AI development.
- Tailored Solutions: Partnering with an agency allows for generative AI applications that are customised to meet the specific needs of the business.
- Strategic Alignment: Agencies often provide high-quality strategic guidance to ensure the generative AI application aligns with the company’s long-term objectives.
- Focus on Compliance and Security: Agencies are typically well-versed in the latest regulations and standards, ensuring that the AI solution is compliant with industry laws and guidelines. Additionally, GenAI expert agencies like Calls9 often focus on ethical and responsible AI as well as use secure AI practices.
Cons:
- Cost: While less expensive than building in-house, partnering with a top-tier agency can still be a significant investment, particularly for smaller businesses.
- Finding the Right Partner: The success of this approach heavily depends on choosing an agency with the right blend of technical expertise and industry knowledge.
Here is a comparison table from The Ultimate GenAI Guide, that you can access for free.
Which Option is Right for Your Business?
Choosing between building, buying, or partnering with an agency for your generative AI applications depends on several factors, including your business’s size, objectives, and available resources. Here are some tips to help you choose to best approach:
- Build: If your business has unique needs that require a high degree of customisation, and you have the resources to invest in an in-house development team, building your own generative AI solutions might be the best option. This approach is ideal for large enterprises with complex IT infrastructures that need tailored solutions.
- Buy: If you are looking for quick deployment and lower upfront costs, buying an off-the-shelf generative AI tool can be the most efficient route. This option is well-suited for companies that need standard AI functionalities and have less complex integration needs. It can also help you try and test a GenAI tool before building it in house or with the help of an agency.
- Partner: If your business requires a customised solution but lacks the internal resources to develop it, partnering with a generative AI company can provide the expertise and strategic guidance needed to implement an effective AI solution. This approach is particularly beneficial for companies prioritising secure AI practices and ensuring their solutions adhere to the highest standards of compliance and ethics.
As the adoption of generative AI continues to rise, businesses must carefully consider their approach to implementation. Whether you build, buy, or partner, the key is aligning your generative AI strategy with your specific business objectives, resources, and long-term goals. By making an informed decision, you can leverage the power of generative AI solutions to drive innovation, efficiency, and growth in your organisation.
Getting Started with End-to-End AI Transformation
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- Audit your existing AI capabilities
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- Testing and continuous improvement
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* This articles' cover image is generated by AI
