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Leadership26 October 20265 min read

Build vs buy in the AI era: a decision framework for leaders

Build-or-buy has always been a question about what is core to your business. AI changes some of the costs, but not the logic.

In this post
  1. Questions to ask
  2. What AI changes
  3. A middle path
  4. Sources and further reading

Questions to ask

  • Is it a differentiator? Build what sets you apart; buy what everyone needs.
  • Do we have the skills, and will we keep them?
  • What is the total cost, including running, updating and supporting it?
  • What is the exit? How hard is it to leave a vendor, or to hand over what you built?
  • What data is involved, and where may it go?

What AI changes

  • It lowers the cost of writing some code, but not of owning it.
  • It makes models, not just software, something you can buy.
  • It adds new ways to depend on a vendor: models, prompts and data.

A middle path

Buy the commodity layer, build the part that carries your logic and data, and keep the seam between them clean so either side can change.

Sources and further reading

  1. IICTP. Portfolio Technical Practitioner credential page. iictp.org/certifications/pftp.

IICTP is a new independent credential and is not ISO/IEC 17024 accredited.

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