Navigating the Build vs. Buy Decision for Enterprise AI in 2025

The landscape of Enterprise AI in the United States has evolved beyond mere experimentation. Today, Chief Financial Officers (CFOs) demand clear returns on investment (ROI), boards of directors require evidence of robust risk oversight, and regulators are increasingly focused on ensuring that companies adhere to existing risk management obligations. In this complex environment, VPs of AI are faced with a critical question: Should organizations build their AI capabilities in-house, purchase them from external vendors, or adopt a hybrid approach?

The answer is not straightforward. According to insights from industry experts, the choice between building or buying AI capabilities is highly context-specific and should be considered on a portfolio basis. It is essential to assess each use case in relation to strategic differentiation, regulatory scrutiny, and the organization's execution maturity.

The U.S. Regulatory Framework

While the European Union is establishing prescriptive regulations through the AI Act, the United States continues to rely on a sector-driven and enforcement-led approach. Key frameworks guiding U.S. enterprises include:

• NIST AI Risk Management Framework (RMF): This serves as the de facto federal guidance, shaping procurement and vendor assurance programs across various agencies, and is now being mirrored in enterprise practices.
• NIST AI 600-1 (Generative AI Profile): This framework refines expectations regarding hallucination testing, monitoring, and evidence in AI systems.
• Banking and Finance Regulations: Guidelines from the Federal Reserve, FDIC, and the Office of the Comptroller of the Currency (OCC) emphasize the importance of model risk management and ongoing scrutiny of algorithms used in underwriting and risk assessments.
• Healthcare Oversight: Compliance with HIPAA and FDA regulations is essential for algorithms utilized in clinical settings, ensuring patient safety and data integrity.

As organizations navigate these regulatory landscapes, the decision to build or buy AI capabilities will significantly impact their operational success and compliance posture. It is crucial for leaders to remain informed about these developments and adapt their strategies accordingly.

Rocket Commentary

The article paints a realistic picture of the current state of Enterprise AI, highlighting the pressure on CFOs and boards for demonstrable ROI and risk management. This demand underscores the necessity for a strategic approach to AI capabilities, whether built in-house or sourced externally. However, organizations must prioritize ethical considerations and accessibility in their decision-making processes. A purely ROI-driven mindset risks stifling innovation and neglecting the transformative potential of AI. As companies navigate this complex landscape, they should ensure their AI strategies not only align with financial goals but also foster responsible and inclusive technology development that benefits all stakeholders. The choice between building and buying should reflect a commitment to leveraging AI as a tool for broader societal progress, not just a means to an end.