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The Build vs. Buy vs. Commission Decision for GenAI

Updated: Aug 13

The rise of GenAI offers businesses unprecedented opportunities to innovate and streamline operations. However, deciding whether to build, buy, or commission a GenAI system requires careful consideration of various factors.



Committee deciding Buy vs. Build vs. Commission for a GenAI system
Source: Microsoft Designer

Based on my personal experience over the past 3 years, here are the economic aspects, privacy and security concerns, IP Ownership issues and production time comparisons associated with each option.

Economic Aspects





Privacy and Security Concerns




Development and Deployment Time



IP Ownership



My Observations

Generally, large companies with internal IT teams, especially those in highly regulated industries (e.g., Banking, Healthcare) prefer to build their GenAI systems in-house.


Smaller companies, especially in industries/ use cases where customer data is not part of the GenAI system (e.g., internal knowledge management tools, creative content creation, etc.,) tend to use off-the-shelf GenAI tools or commission a service provider to customize available tools.


All companies that don’t neatly fit into any of these categories vary in their choice. They need to make a careful evaluation based on  economic aspects, privacy and security concerns, IP Ownership concerns and production time.



This post was first published on Raj's LinkedIn page here.

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