Enterprise AI in 2025: An 80/20 Balance of Buy vs. Build
As of 2025, artificial intelligence is no longer a novelty—it's an operational necessity. With AI agents handling front-line support, agentic process automation transforming back-end workflows, and GenAI revolutionizing content creation, the challenge for CIOs and technology leaders isn’t whether to adopt AI, but how to implement it effectively. One key strategic decision remains front and center: Should you build custom AI solutions in-house or buy ready-made AI platforms?
The 80/20 Rule of Enterprise AI
Industry observers and data from firms like Gartner and Deloitte suggest that most enterprises are opting for a hybrid approach. However, the split between buy and build isn’t always 50/50. A growing consensus points to an 80/20 rule:
80% of AI needs are met by purchased or subscription-based AI solutions.
20% are addressed with custom-built AI where deep integration or unique IP is critical.
This ratio is driven by a mix of cost efficiency, time-to-value, and the scarcity of specialized AI/ML talent. Let’s break down why.
1. Why 80% Buy?
a. Rapid Time-to-Value
Instant AI Workflows: Off-the-shelf solutions let you deploy AI agents or routine document-processing models in weeks.
Less Risk: Proven vendor platforms come with built-in security, reliability, and updates.
b. Predictable Costs
Subscription Models: Purchasing AI under a SaaS model controls operational expenses.
Resource Efficiency: Outsource heavy R&D and maintenance to vendors with specialized teams.
c. Scalability and Innovation
Continuous Improvement: Leading platforms frequently release new features, from advanced GenAI capabilities to improved natural language processing (NLP).
Ecosystem Integration: Cloud-based marketplaces offer one-click access to complementary AI extensions and tools.
2. Why 20% Build?
a. Strategic Differentiation
Proprietary Algorithms: Custom AI can embed unique business logic and domain expertise—critical in regulated or niche sectors.
Agentic Process Automation: Tailor AI to match exact operational workflows, especially where fine-grained integration is paramount.
b. Data Privacy & Compliance
Complete Ownership: Retain full control of sensitive data, from ingestion to model training and deployment.
Regulatory Alignment: Quickly adapt to changing policies or standards, a key advantage in finance, healthcare, and government.
c. Innovation and IP
Competitive Advantage: Develop new capabilities that competitors can’t replicate with off-the-shelf solutions.
Long-Term Flexibility: Retain the freedom to evolve or pivot AI models without vendor lock-in.
Charting Your Hybrid AI Strategy
With an 80/20 buy-vs.-build ratio as a guideline, enterprises can create a robust roadmap to capitalize on both established AI platforms and internal ingenuity.
Identify Your Core Use Cases
Spot standard or commoditized tasks—like customer service bots or basic anomaly detection—that can use purchased AI.
Reserve custom builds for advanced predictive models, specialized GenAI, or deeply integrated agentic workflows.
Conduct a Rapid Pilot
Test third-party AI platforms for quick wins: short deployment cycles, immediate ROI.
Simultaneously, launch a small in-house project to gauge feasibility for specialized needs.
Assess Skills & Resources
Confirm if you have the ML engineers or data scientists to build custom AI.
If not, plan strategic hires, or outsource limited tasks (e.g., model tuning) to experts.
Create a Governance Framework
Define clear processes for vendor selection, compliance checks, and performance metrics.
Ensure data integrity, model transparency, and ongoing security audits—whether you build or buy.
Looking Ahead
The 80/20 rule isn’t carved in stone; it serves as a starting point. Some industries might skew closer to 70/30 or 90/10, depending on compliance pressures, legacy infrastructure, and long-term vision. But overall, enterprises find that purchasing AI solutions for routine applications frees up resources to build strategic AI where it truly matters.
In 2025, a balanced AI ecosystem—merging off-the-shelf platforms with custom development—is the key to thriving in an era defined by AI agents, GenAI, and agentic process automation. By following this hybrid approach, you’ll harness the speed and reliability of vendor solutions while retaining the creative freedom to innovate and stand out.