{"id":13681,"date":"2023-01-17T23:33:05","date_gmt":"2023-01-17T18:03:05","guid":{"rendered":"https:\/\/www.allerin.com\/blog\/?p=13681"},"modified":"2022-12-26T23:34:41","modified_gmt":"2022-12-26T18:04:41","slug":"how-to-decide-whether-to-build-or-buy-ai-capabilities","status":"publish","type":"post","link":"https:\/\/www.allerin.com\/blog\/how-to-decide-whether-to-build-or-buy-ai-capabilities\/","title":{"rendered":"How to Decide Whether to Build or Buy AI Capabilities"},"content":{"rendered":"<p><a href=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2022\/12\/AI-applications.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-13682\" src=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2022\/12\/AI-applications.jpg\" alt=\"AI applications\" width=\"1000\" height=\"560\" srcset=\"https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/AI-applications.jpg 1000w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/AI-applications-300x168.jpg 300w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/AI-applications-768x430.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/p>\n<p>The urgency to position oneself over competitors is widespread. Globally, all organizations are trying to be the dominant leader in their industry. One way CIOs can help their organization reach their goals of besting their competitors is through <a href=\"https:\/\/www.allerin.com\/blog\/3-steps-a-cio-must-follow-to-employ-ai-solutions-in-an-organization\">AI integration.<\/a> The use of AI applications and their capabilities has long proven its benefits in all industries, growing its <a href=\"https:\/\/www.globenewswire.com\/en\/news-release\/2022\/09\/13\/2514767\/0\/en\/AI-Market-Size-to-Reach-USD-1394-30-Billion-by-2029.html#:~:text=AI%20market%20size%20was%20USD%20328.34%20billion%20in%202021.\">expected market size<\/a> to $1394.30 billion by 2029. However, to utilize AI applications that can rival an organization\u2019s competitors, the question that requires answering is whether to build or buy AI capabilities.<\/p>\n<h2>How to Decide Whether to Build or Buy AI Applications<\/h2>\n<p>There are certain factors that a leader should consider before deciding whether to build its organization\u2019s AI applications and capabilities from the ground up or source it from a vendor.<\/p>\n<p><a href=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-13683\" src=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities.png\" alt=\"AI applications\" width=\"1620\" height=\"1620\" srcset=\"https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities.png 1620w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities-300x300.png 300w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities-1024x1024.png 1024w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities-150x150.png 150w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities-768x768.png 768w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities-1536x1536.png 1536w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities-144x144.png 144w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2022\/12\/How-to-Decide-Whether-to-Build-or-Buy-AI-Capabilities-120x120.png 120w\" sizes=\"auto, (max-width: 1620px) 100vw, 1620px\" \/><\/a><\/p>\n<h3>1.\u00a0\u00a0\u00a0 Analyzing the Issue<\/h3>\n<p>An organization can face certain challenges in its operations, and to evade such challenges, it will first analyze the issue and figure out how AI can provide the solution. Sometimes. the key to such problems can lead to something unique and unrivaled by interpreting mountains of data to provide viable answers. To do so, the organization needs to decide whether the solution to the challenges will be done by building the AI capability or sourcing it from a well-established vendor that can help them decode the issue. Some companies may not have the finances to build an AI and can, therefore, buy it from a vendor.<\/p>\n<h3>2.\u00a0\u00a0\u00a0 Researching and Screening Vendors<\/h3>\n<p>Suppose an organization is thinking of buying the services of an AI vendor. In that case, they need to obtain a list by conducting market research to understand who offers the solution you require based on the capabilities required for current and future use cases. However, there is a possibility for the <a href=\"https:\/\/www2.deloitte.com\/ca\/en\/pages\/risk\/articles\/reduce-your-third-party-risk.html\">firm to face risk<\/a> if it decides to procure the services of the only vendor providing the required AI applications. An organization needs to conduct due diligence to avoid being in the pitfall of risks that come with third-party AI providers.<\/p>\n<h3>3.\u00a0\u00a0\u00a0 Enhancing the Skill Strategy<\/h3>\n<p>An organization should carefully consider the skills they hire if looking to build AI applications. They can also create an opportunity for themselves to harness a mix between making and buying AI applications and reap the benefits. Firms should find ways to cut corners and minimize their technical debt. With the skills to build, improve and maintain the product, organizations can create an enhanced AI application and achieve success by addressing the advantages of a mixed strategy or building and buying its AI capabilities.<\/p>\n<h2>Final Thoughts<\/h2>\n<p>AI applications have the capability to provide organizations with a path to creating groundbreaking solutions for their organization and allow them to position themselves at the top of their industry. However, integrating such AI capabilities requires them to deeply understand its technical budget, workforce, time and other factors if building it from scratch or buying it. Even if an organization decides to avail of the services of a third-party AI vendor, it must be careful about the possibility of facing a vendor lock-in. Extensive questioning will let the CIOs make the correct decisions in creating well-rounded AI applications and capabilities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The urgency to position oneself over competitors is widespread. Globally, all organizations are trying to be the dominant leader in their industry. One way CIOs can help their organization reach&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5,3],"tags":[1536],"class_list":["post-13681","post","type-post","status-publish","format-standard","hentry","category-ai","category-technology","tag-ai-applications"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.5 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How to Decide Whether to Build or Buy AI Capabilities<\/title>\n<meta name=\"description\" content=\"Buying or building AI applications and capabilities requires a thorough understanding of the market and the internal operations of the organization.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.allerin.com\/blog\/how-to-decide-whether-to-build-or-buy-ai-capabilities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Decide Whether to Build or Buy AI Capabilities\" \/>\n<meta property=\"og:description\" content=\"The urgency to position oneself over competitors is widespread. Globally, all organizations are trying to be the dominant leader in their industry. One\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.allerin.com\/blog\/how-to-decide-whether-to-build-or-buy-ai-capabilities\/\" \/>\n<meta property=\"og:site_name\" content=\"Artificial Intelligence, ROBOTICS, AUTOMATION\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/allerintech\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-17T18:03:05+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2022\/12\/AI-applications.jpg\" \/>\n<meta name=\"author\" content=\"Naveen Joshi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@joshinav\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Naveen Joshi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script 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