CIOs are faced with a familiar dilemma: whether to create their own solutions internally or invest in and adapt existing tools in the rapidly expanding AI market. As companies rush to provide more generative AI resources to users, software vendors are swiftly integrating these tools into their products.
According to Prakash Ramamurthy, the Chief Product Officer at Freshworks, the decision between building and buying AI solutions is not a simple one. To expedite the adoption of general AI and reap its benefits, CIOs may opt for a hybrid approach of both building and buying.
Ramamurthy suggests that some CIOs are already implementing this strategy as part of a broader tech strategy: developing business-specific solutions in-house while outsourcing other aspects. It is clear that general AI is not a one-size-fits-all solution.
He cautions against treating general AI as a solution in search of a problem. Instead, he advises viewing it as an additional tool to address existing challenges effectively.
Rationale for Building Solutions
Currently, there is a widespread interest in AI among IT leaders. Fundry’s 2023 AI Priorities study reveals a keen interest in various general AI applications, such as chatbots, content generation, industry-specific solutions, data augmentation, and personalized recommendations.
Despite the growing interest, the availability of AI capabilities remains limited, especially in the general AI domain. Ramamurthy emphasizes the importance of focusing internal AI development efforts on critical business needs. He recommends leveraging AI within the realm of one’s expertise to maximize its impact.
This approach may involve directing general AI initiatives towards mitigating risks in production facilities or optimizing supply chain operations in a manufacturing setting. For example, AI could enhance production planning and scheduling for complex manufacturing processes by analyzing diverse data sets like material availability, production capacity, and market demand to recommend optimal strategies.
Ramamurthy advises against internal development if AI is not a core competency. Any diversion from focusing on core business activities can lead to resource wastage and missed opportunities. He emphasizes the importance of companies concentrating on expanding their customer base and business rather than venturing into software development if it is not their primary expertise.
Rationale for Purchasing Solutions
While focusing on core competencies, IT leaders can still embrace general AI across their IT infrastructure. Most service providers and vendors are actively integrating general AI into their offerings. IT leaders can either onboard new vendors with AI capabilities or challenge existing vendors to incorporate AI swiftly.
Ramamurthy highlights the need to choose vendors who can quickly deliver value through AI-powered solutions. Vendors have integrated gen AI capabilities into various applications, including productivity tools, security solutions, and marketing/sales applications, as indicated by respondents to the Foundry AI Priorities Study.
By adopting a build-and-buy strategy, IT teams can prioritize supporting core business operations without exhausting internal resources, while also gaining access to advanced capabilities throughout their IT stack.
In conclusion, Ramamurthy stresses the importance of embracing general AI proactively and leveraging it to enhance core competencies. However, he warns against overestimating AI’s capabilities outside one’s area of expertise. It is crucial to partner with vendors who offer proven gen AI solutions that deliver rapid value.
