SR
ENExample situation: Build AI In-House or Buy
What would an analysis look like when you choose between building and buying?
Question
“We want to add AI capabilities to our product. We could use an existing API (a ready-made software service from another provider that our product simply connects to, instead of building it ourselves) and launch within three months, or build our own solution over 12-18 months. Which approach is more rational?”
What to question
What is lost in control and differentiation by relying on someone else's API? Is a three-month time-to-market advantage worth more than 12 to 18 months of building in-house? Is there a middle path, such as starting with the API and building an in-house solution later?
How the depth changes
Focused → broader → deepest
Four perspectives quickly separate speed from ownership: what customers are actually paying for versus what infrastructure merely supports it, the…
Five additional perspectives challenge the assumption that owning infrastructure equals owning advantage, model a downside where the external API's…
Six further perspectives stress-test the capital discipline of a 12-18 month build against evolving competitor timelines, negotiating better terms or…
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