Ever since technology became an integral part of business operations, companies have had to decide whether to create solutions in-house or purchase them externally, often shifting their decision from build to buy depending on the circumstances.
The question of build or buy isn’t new to organizations; it is part of any journey of adopting new technology, and it also applies to the journey of onboarding AI.
However, there is a fundamental difference between AI technology and how businesses traditionally viewed technology.
This key difference requires a mind shift—a new approach to the timeless question of whether to build or buy.
What Makes AI Different?
AI is a technology that mimics human cognitive abilities. Unlike traditional technologies, AI is not static—it represents constant change and evolution. The transformative power of AI in business lies in these two core characteristics.
This change and evolution happen in two parallel paths:
Beyond Original Programming: AI can go beyond the initial programming it was designed for. Even within the same function, AI has the ability to grow and improve its capabilities over time, continuously enhancing its performance.
Rapid Evolution: AI doesn’t just evolve with basic updates or improvements. It gains entirely new abilities at a fast pace. What is relevant today may become obsolete tomorrow as AI continues to develop.
Traditional Perspective of Technology: Stable and Long-Lasting
Traditionally, whether you built technology in-house or purchased it from outside, solutions were stable and long-lasting. Sure, they got updates and improvements over time, but there weren’t rapid or massive changes. When companies invested in technology, they knew it would stick around for a while.
To prove this point, I’m sure if you think about your own business, there’s probably some legacy technology you still use today. It’s neither good nor bad—it’s just reality.
Holding this perspective, the build-or-buy conversation driven from this point of view focused on long-term ROI. Simply put: the longer we can stabilize and customize the technology for long-term use by the organization, the better.
New Perspective on Technology: Constant Change and Evolution
Now that we have a new kind of technology that keeps changing, moving, evolving, and honestly, the changes are more rapid than expected and the impact is significant. The base of the conversation of build or buy is no longer on long-term investment but on how fast we can get it up and running.
So the question is not how long it can stick around but how soon can we get it, as we are missing the impact it can bring with every day it’s not running.
Seeing AI as a Non-Human Employee
Viewing AI as a non-human employee is a practical way to embrace the new perspective of technology as one of constant evolution and change.
It’s hard to fully grasp the impact of this new found understanding of what technology means when discussing the build vs. buy decision.
That’s why having this practical down to earth way of seeing AI as a non-human employee helps us understand what it means that you want that employee to start tomorrow and can simplify the conversation.
Yes, this “new employee” requires more IT and infrastructure investment than what we’re used to. But the key question remains: should we take responsibility for providing, supporting, training, and securing this new kind of employee, or should we simply onboard it as an outsourced employee?
Benefits
Consistency: This practical point of view enables different stakeholders, regardless of their level of technical understanding, to communicate and align on a consistent basis.
By viewing AI as a non-human employee, everyone can engage over a shared, straightforward perspective.
Simplicity: This simple yet practical way of looking at AI can serve as the foundation for simplifying complex discussions. It allows for a focus on the business value rather than the technology itself, making conversations more accessible to all involved.Shortcut to the Best Possible Answer: By adopting this practical and straightforward approach to viewing AI, businesses can more easily find the best solution to the build vs. buy.
Example – Validation Using SWOT
Part of the build vs. buy process involves validation, and frameworks like SWOT analysis help businesses get a clearer picture of what decision might be the best for them. Here’s how a shift in perspective can change the focus of the SWOT analysis:
Traditional Perspective:
In this view, the analysis focuses on long-term stability and return on investment (ROI) over an extended period. The aim is to identify what can ensure that the chosen technology will continue serving the business for many years.
Strengths & Opportunities:
Anything that ensures the technology will provide long-term value is emphasized.
For example:
- Customization: Ability to tailor the technology to fit specific business needs.
- Low Maintenance Costs: A solution that requires minimal ongoing maintenance.
- Stability: A reliable, tried-and-true system.
- Competitive Edge: The ability to sustain productivity and maintain a competitive advantage over the long term.
Weaknesses & Threats:
Anything that could hinder the long-term use of the system would be highlighted.
For example:
- Regulatory Issues: Potential future legal restrictions.
- Cultural Fit: How well the technology integrates into the organizational culture.
- Cost of Ownership: High total cost of ownership over time, including upgrades and maintenance.
New Perspective – AI as a Non-Human Employee:
In this perspective, AI is viewed as a non-human employee, with the focus shifting from long-term use to how quickly and effectively AI can be implemented to start delivering value immediately.
Strengths & Opportunities:
Anything that accelerates getting the AI “employee” up and running is critical.
For example:
- Organizational Knowledge: Existing expertise or familiarity with AI technology within the company.
- Past Experience: Successful prior implementations of similar technologies.
- Data Readiness: The availability of clean, structured data that AI can use to perform its functions effectively.
Weaknesses & Threats:
The focus is now on identifying anything that will delay AI’s implementation.
For example:
- Cost of Delay: The financial impact of each day the AI system isn’t operational.
- Technological Integration: How difficult or time-consuming it might be to integrate AI into existing systems.
- Infrastructure Gaps: Missing infrastructure that could slow down onboarding, like outdated hardware or insufficient data processing capabilities.
In this shift from the traditional perspective to viewing AI as a non-human employee, the focus moves from maximizing long-term ROI to quick implementation and capturing immediate value.
My Thoughts
Simplifying things does not mean we are running away from hard conversations. As humans, when it comes to strategic decisions, we often feel that taking a complex approach means we are considering everything, and we assume that by doing so, it will lead us to the best possible decision.
But here’s a simple truth about human nature: complexity creates stress, and when we’re stressed, our minds naturally focus on what could go wrong. That’s just how we’re built. Our fight-or-flight mechanism kicks in, clouding our judgment and making decisions become more difficult, as we operate from fear rather than excitement.
Taking a simplified approach provides confidence, clarity, and a sense of openness to hard discussions. When it comes to the build or buy technology question, simplicity sets the right tone and environment for meaningful conversations to take place.
This doesn’t mean those conversations won’t be difficult or technical; it just means they don’t all have to be overly complicated. Viewing AI as a non-human employee has a great side effect: it makes it easier for everyone to participate, especially when not all stakeholders are technical experts or fully understand the details of how the business operates. This perspective provides a shared understanding of what we are trying to achieve when we onboard AI technology.
For me, this approach also means businesses are asking themselves the true question: How fast can we implement AI?Essentially, how soon can we onboard the new non-human employee? I hope this new perspective helps you reconsider your decision between building or buying and makes your conversations easier and more productive.
If you’d like to continue this conversation, bring some coffee, and let’s talk.
