Build or Buy AI? Deciding Between a Custom AI Tool and a COTS Solution

As businesses strive to enhance productivity, streamline operations, and empower their teams, the decision to build a custom AI solution or invest in a Commercial Off-The-Shelf (COTS) platform becomes pivotal. While traditional AI chatbots focus primarily on customer interaction and basic support, modern AI platforms offer robust Digital Assistants that provide a broader range of capabilities designed to deliver greater value across an organization.

There are pros and cons to both, so how do you choose between building a custom AI solution or purchasing a COTS platform? Let’s examine the advantages and disadvantages of each approach.

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Building a Custom AI Solution

Pros:

1.?Tailored to Specific Needs:

A custom-built AI solution allows organizations to design functionalities specifically aligned with their unique operational requirements. This might include custom workflows, specialized data integrations, or unique features not available in COTS products.

2. Complete Control Over Development and Data:

Building a solution from scratch provides full control over the technology stack, feature set, and data management. Companies can customize natural language processing capabilities and AI algorithms to fit their specific goals and data privacy standards.

3. Flexibility and Scalability:

Custom solutions can be more flexible and scalable to future changes. As business needs evolve, organizations can modify and expand their AI capabilities to integrate new features or adjust to new processes without waiting for vendor updates.

4. Distinct Competitive Advantage:

A custom solution can provide unique functionalities that differentiate a business from its competitors, creating a bespoke tool that directly enhances specific business operations.

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Cons:

1. High Initial Costs:

Developing a custom AI solution requires a significant upfront investment in terms of software development, testing, and deployment. Additionally, there are ongoing costs for maintenance, updates, and scaling.

2. Extended Time to Deploy:

The process of building a custom solution can be time-consuming, from initial planning and development to testing and deployment. This can lead to longer timeframes before the benefits are fully realized.

3. Resource Demands:

Maintaining a custom-built solution requires dedicated internal resources, including AI experts, software developers, and IT support staff. This can place additional demands on an organization, particularly smaller or mid-sized enterprises.

4. Risk of Unproven Technology:

Developing a new AI solution comes with the risk of encountering technical challenges or failure. Without the necessary expertise or experience, there is a possibility that the solution may not meet all desired outcomes.

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Buying a COTS Solution

Pros:

1. More Than Just a Chatbot:

COTS AI platforms offer more than basic chatbot functionalities. They provide advanced capabilities such as knowledge capture and sharing, streamlined administrative tasks, automated report generation, and more, directly addressing the needs of various business units and workers.

2. Rapid Deployment:

COTS solutions are designed for quick deployment, enabling organizations to integrate the product into their existing systems with minimal setup. This allows companies to start benefiting from the platform almost immediately.

3. Lower Upfront Investment:

Purchasing a COTS platform typically involves a lower upfront cost compared to building a solution from scratch. Subscription-based pricing models also offer flexibility in budgeting and managing ongoing expenses.

4. Proven and Reliable Technology:

COTS products have been tested and proven in real-world environments, ensuring reliable performance and reducing the risk associated with unproven custom solutions.

5. Ongoing Updates and Support:

Vendors of COTS Digital Assistants provide regular updates, new features, and security patches, ensuring the product remains up-to-date and secure. Organizations also benefit from dedicated customer support and extensive resources.

6. Enhanced Organizational Value:

COTS Digital Assistants enhance organizational productivity by capturing and sharing valuable knowledge, automating routine tasks, and generating reports, providing a comprehensive solution that supports various business functions.

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Cons:

1. Limited Customization Options:

While COTS solutions offer a wide range of features, they may not fully align with every organization's unique requirements. Customization options may be available but could be limited compared to a custom-built solution.

2. Vendor Dependency:

Organizations are dependent on the vendor for updates, support, and future developments. Changes in the vendor's product strategy or support model could impact the organization.

3. Ongoing Subscription Fees:

Although the initial investment is lower, COTS products often come with ongoing subscription costs. Over time, these fees can accumulate, although they are typically offset by the continuous value provided.

4. Data Privacy Considerations:

Using a COTS solution may involve sharing some data with the vendor. Organizations should explore deployment options depending on security requirements and ensure that the vendor adheres to strict data privacy and security standards to mitigate any risks.

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Conclusion: Making the Right Decision for Your AI Needs

Deciding whether to build a custom AI solution or purchase a COTS solution depends on various factors, including budget, specific needs, and internal resources.

Build if you need highly specialized features that only a custom solution can deliver and have the resources to develop and maintain it.

Buy a COTS solution if you are looking for a powerful, ready-to-deploy platform that offers more than just chatbot capabilities and comes with ongoing support and regular updates.

Both options have their merits, and the right choice will depend on your organization's specific circumstances and long-term strategy. Investing in an AI-powered Digital Assistant, whether custom-built or off-the-shelf, can significantly enhance efficiency, drive innovation, and support digital transformation efforts.

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Introducing Onsight NOW

If you are considering implementing an AI Chatbot or Digital Assistant, Onsight NOW offers a comprehensive Enterprise AI solution that is tailor fit to each customer and addresses many of the needs discussed above. Learn more at www.onsightnow.com .