The gut-check questions every leader needs to ask before building with AI
There’s an idea gaining traction in enterprise technology: companies can save millions by using AI to build their own software. Forget buying a platform like SAP, Workday, or HubSpot. Instead, CIOs and their teams are creating custom apps with Claude Code and other tools.
TL;DR
- Using AI to build custom software is an emerging trend, offering potential cost savings over buying platforms like SAP or Workday.
- The decision to build or buy should consider if software development is a core business competency.
- Potential savings from building in-house must be weighed against the significant costs of development, maintenance, security, and governance.
- Security and governance risks are amplified when building custom AI software, requiring assessment of a team's capabilities to defend against evolving threats.
- The departure of a CIO can lead to loss of institutional knowledge for custom-built platforms, creating support and maintenance challenges.
- Building software makes sense for projects that leverage proprietary data and institutional knowledge to create business differentiation.
- For standard workflows like HR or customer service, buying AI-powered platforms from vendors often provides a clearer path to ROI.