The choice between building a custom AI solution or buying an existing one is no longer binary. With accelerating tools and platforms, organizations must consider precision in alignment, speed to value, cost-efficiency, and strategic control. This guide helps navigate the decision landscape.

1. Frame the Strategic Context

Decide based on alignment with business goals, internal capabilities, and vision. The KPMG framework underscores the need to weigh functionality fit, configuration flexibility, integration ease, and receiver capacity KPMG.

2. Evaluate the Buy Option

• Pros:
  • Fast deployment and ROI; avoids lengthy development cycles.
  • Often includes vendor support, updates, and security maintenance with minimal internal overhead.
• Cons:
  • Limited visibility into data governance and potential biases that can’t be mitigated by the buyer.
  • Inflexibility when adapting to unique business processes or evolving use cases.

3. Consider the Build Option (Now More Feasible)

• AI-assisted development tools (e.g., GitHub Copilot, Codex, low-code platforms) significantly reduce barriers to custom development.
• Internal platforms gain agility and preferred alignment but require strong governance around QA, maintenance, and technical debt.

4. Explore Hybrid Approaches

• Combine off-the-shelf solutions with custom development where necessary.
• Ideal when you need best-of-breed efficiency with tailored niche capabilities—allowing you to stand up core functions quickly and refine selectively.

5. Real-World Examples & Emerging Trends

• Legal teams illustrate the spectrum: some build proprietary tools for full control (e.g., HPE), while others buy due to limited resources (e.g., Staples Canada).
• AI coding tools like Bolt or Replit empower non-traditional developers to rapidly create internal tools—redefining the boundary between build vs. buy Business Insider.

Decision Framework

Final Thoughts

Rather than forcing build vs. buy, use intelligence and business context to strike a middle path—deploy standard tools where they work, and invest in custom AI for your core differentiators. Infuse your strategy with thoughtful alignment, cost-awareness, and long-term flexibility.

References

• KPMG on strategic alignment in build vs. buy decisions KPMG
• RSM’s considerations for cost, time-to-market, capability comparisons RSM US
• Optiv on benefits and challenges of third-party AI solutions optiv.com
• FormAssembly on AI-assisted coding, testing, low-code platforms reducing build barriers FormAssembly
• Legal sector case studies (HPE, Staples Canada, TravelPerk) illustrating real choices Financial Times
• AI coding tools enabling internal software creation and shifting the SaaS model Business Insider