In today’s rapidly evolving digital landscape, the use of artificial intelligence (AI) tools is becoming increasingly essential for businesses to stay competitive. However, the decision to build or buy these tools can be a challenging one for organizations. To guide us through this dilemma, we have Andy Sajous, a leader in digital transformation, who shares his insights on the trade-offs between building and buying AI tools and crucial actions that CIOs should take going into 2025.
According to Sajous, the decision to build or buy AI tools depends on the organization’s specific needs and capabilities. Building AI tools in-house can provide a unique competitive advantage, as it allows organizations to tailor the tools to their specific requirements and processes. However, it also requires a significant investment of time, resources, and expertise. On the other hand, buying AI tools from external vendors can offer cost and time efficiency, as well as access to advanced features and technology. However, it may not always align with the organization’s goals or provide the desired level of customization.
Sajous emphasizes that the key to making the right decision lies in understanding the organization’s core competencies and long-term goals. “Organizations need to evaluate their unique strengths and capabilities and determine if building AI tools aligns with their core competencies,” he says. He also advises organizations to conduct a thorough cost-benefit analysis to determine the most viable option. In some cases, a hybrid approach of building and buying AI tools may be the best solution.
As we look towards 2025, Sajous predicts a significant shift towards AI-driven strategies in organizations. He believes that by then, AI tools will become an integral part of businesses, and the decision to build or buy them will become more critical than ever. “With the rapid advancement of technology, organizations need to be proactive in adopting AI and staying ahead of the competition,” he says.
For CIOs, Sajous suggests that now is the time to start preparing for this shift. He stresses that they need to be aware of the latest developments and advancements in the AI space and understand how these tools can benefit their organization. “CIOs should start exploring potential use cases for AI in their organization and assess the feasibility of building or buying these tools,” he says.
Moreover, Sajous believes that CIOs should focus on developing a robust data strategy to support the implementation of AI tools. “AI is only as good as the data it is trained on,” he explains. Therefore, organizations need to ensure they have a reliable and relevant data set to power their AI tools. CIOs should also consider investing in data analytics tools to gain valuable insights and improve the overall performance of their AI initiatives.
Another crucial aspect that CIOs should keep in mind is the ethical implications of using AI. With the increasing use of AI in decision-making processes, there is a growing concern about potential biases and discrimination. “CIOs need to be mindful of the ethical implications and ensure that their AI tools are fair, transparent, and unbiased,” Sajous says. He also recommends involving diverse teams in the development and testing of AI tools to minimize the risk of bias.
In addition to these actions, Sajous highlights the importance of investing in employee training and upskilling programs. As AI becomes more prevalent in the workplace, it will inevitably change the nature of jobs and require new skills. “Organizations need to prepare their workforce for this shift and provide them with the necessary training to thrive in an AI-driven environment,” he says.
In conclusion, the decision to build or buy AI tools is a complex one that requires careful consideration of various factors. However, as we look towards 2025, it is evident that AI will play a significant role in shaping the business landscape. For CIOs, it is crucial to start preparing now and take the necessary actions to ensure their organization’s success in the digital era. As Sajous aptly puts it, “The future is AI, and organizations need to be ready to embrace it.”
