In the fast-paced world of digital transformation enterprises face the pivotal decisions of ‘build vs. buy,’ particularly when it comes to implementing a Conversational AI Assistant. Below we take a look at the critical considerations of this decision, highlighting why purchasing an off the-shelf solution is often the smarter choice for most organizations.
Understanding the Build vs Buy Dilemma
When a company decides to implement a Conversational AI Assistant, they stand at a crossroads: should they invest in building a custom solution with in-house development (or PS firm) from the ground up or should they buy a pre-existing, market-ready product? Both paths have their merits and drawbacks.
There is a long history of failed internal application development across all companies:
The majority of internal projects run over 189% of the original cost
One third of all internal projects will be terminated before they are completed
In large organizations, only 9% of internal projects come in on-time and on-budget
(Source: The Chaos Report)
By the Numbers
Data collected across customer deployments and industry reports tells a story of lengthy build times and expensive implementations.
Exploring the Pros and Cons
Building your Conversational AI Assistant in-house can offer some benefits including increased customizations and complete control over the scope, as well as ongoing research and development. But building in-house also brings on the burden of managed support, continuous maintenance, and significant financial investments.
On the other side of the coin, buying an off-the-shelf enterprise conversational AI solution allows for scalability, quick deployment, and ongoing support. While dependence on a vendor can be a challenge, it also means long term support and proven reliability.
Why buying is often the better choice
For most businesses, purchasing a Conversational AI Assistant emerges as the preferable option. Here's why:
Cost and Time Efficiency
Building a bespoke solution is a significant investment. It's not just about the initial development; ongoing maintenance and updates add to perpetual operational cost. In contrast, buying a ready-made enterprise AI solution is more cost-effective, with a predictable expense model.
Focus on Core Business
By opting to buy, companies can focus their valuable resources on their core business operations instead of diverting attention to developing and maintaining a complex AI system.
Reduced Risk
Off-the-shelf products have been tested across diverse scenarios, reducing the risk of failure. In contrast, a custom-built solution bears the risk of unknown challenges and potential inefficiencies.
Access to Advanced Technologies
Purchased solutions often come with the latest technologies and build best-practices. Features are added and regularly updated by the vendor. Building advanced capabilities in-house requires substantial expertise, time, and resources.
Quick Deployment and Immediate ROI
Time is a crucial factor. Off-the-shelf solutions can be deployed rapidly, enabling businesses to see an immediate return on investment (ROI) of their AI platform in a span of hours vs. months/years leveraging in-house development.
Conversational AI for your Digital Workplace
While building a Conversational AI Assistant in-house offers customization and control, the advantage of buying an off-the-shelf solution wins out. The cost-effectiveness, quick deployment, access to advanced technology, reduced risk, and the ability to focus on core business tasks make it a compelling choice for most businesses. As the market for Conversational AI Assistants continues to evolve, choosing a reliable and proven off-the-shelf product is not just about convenience; it's a strategic business decision.
