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It’s Time for Your Company to Invest in AI. Here’s How.

The following is a summary of a Harvard Business Review Article.

AI Isn’t a “Build or Buy” Question Anymore—It’s a Strategic Imperative

Why do some companies spend millions on AI and see marginal returns, while others spend far less and outperform?

The difference isn’t budget—it’s strategy.

As AI adoption accelerates (88% of SMBs already use it!), leaders face a critical choice: How should we invest in AI to gain real business value?

The best organizations have moved beyond the outdated “build vs. buy” debate.

Instead, they use a systematic decision framework centered on:

  • Value creation
  • Readiness
  • Strategic alignment

Here’s how the smartest players are approaching AI investment:

🔹 Build when AI capabilities:

  • Create true competitive differentiation
  • Leverage proprietary data or IP
  • Justify higher upfront cost for long-term ROI
Example: JPMorgan Chase’s fraud detection system—custom built, domain-specific, and delivering huge gains in accuracy and cost efficiency.

🔹 Buy when:

  • Speed-to-market is critical
  • Vendors offer mature, scalable solutions
  • Standardization matters more than uniqueness
Example: Salesforce, which strategically acquires proven AI tools to integrate into its platform—saving time and boosting performance.

🔹 Blend (Build + Buy) when:

  • You want control over some key parts, but not all
  • Infrastructure or subsystems can be standardized
Example: Capital One builds core decisioning AI but buys customer service tools.
Result: Speed + control + results.

🔹 Partner when:

  • You need end-to-end solutions from experts
  • Capabilities are critical but non-differentiating
Example: Domino’s + Microsoft Azure co-develop AI for order logistics.
Domino’s gains custom solutions without the cost of internal R&D, and Microsoft gets retail insights.

The takeaway?

The most effective AI strategies are not about choosing one approach—but about mastering when and how to use all four.

These companies:

  • Use frameworks to guide AI investment decisions
  • Align AI with business goals
  • Balance risk, cost, and speed
  • Build blended architectures that evolve over time

AI transformation isn’t about technology.

It’s about making smarter, faster, and more strategic decisions across build, buy, blend, and partner models. That’s where true ROI lies.


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