AI Strategy for Executives
When to Build vs Buy AI Capabilities
Leadership teams face build versus buy decisions on nearly every AI initiative. The wrong choice wastes months of engineering capacity or creates vendor dependency on core workflows.
Buy when capability is commoditized
Scheduling automation, document classification, standard analytics, and generic copilots are increasingly commoditized. Buying accelerates time to value when the capability does not differentiate your business.
Build when data or workflow is proprietary
When proprietary data, unique workflows, or customer-facing differentiation drive value, building—or heavily customizing—preserves competitive advantage. Evaluate whether vendor solutions can integrate your distinct assets.
Hybrid approaches are often optimal
Many enterprises buy platform capabilities and build workflow-specific applications on top. Executive strategy should define what is core versus contextual—and govern accordingly.
Key Takeaways
- Buy commoditized capabilities; build where differentiation exists
- Evaluate total cost including integration and change management
- Define core vs contextual capabilities at the executive level
- Revisit build/buy decisions as market maturity evolves
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