When to Build, Buy, or Compose AI
Choose build, buy, or compose based on strategic differentiation, control, integration, switching cost, capability, and total economics.
Classify strategic importance
Determine whether the capability differentiates the customer experience or operating model. Commodity needs usually favor mature products; strategically distinctive logic, data, or workflows may justify ownership.
Evaluate control and dependency
Assess data handling, observability, customization, uptime, model portability, integration depth, and exit cost. Fast procurement can create slow future change if critical context becomes trapped.
Compare total operating economics
Include implementation, evaluation, security, integration, vendor management, usage, maintenance, and internal capability, not only license or development cost. Revisit the choice as volume and strategic importance change.
Common Mistakes
- Assuming build always means control
- Selecting on demo quality alone
- Ignoring ongoing evaluation costs
Market Signals
- A vendor owns a strategically critical workflow
- Internal teams rebuild undifferentiated infrastructure
- Switching costs were never assessed