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Business & Strategy · beginner · concept 297 of 311 · Updated Nov 4, 2026

Build, Buy or Partner

Build, buy or partner is the choice between developing an AI capability in-house, licensing a vendor product, or using an outside firm. MIT Sloan frames it as buy, boost or build: a ready-made tool, a vendor model boosted with your own data, or a system you create and run. It turns on how core the capability is, data sensitivity and talent. Menlo Ventures' 2025 survey of 495 US enterprises found 76 percent of AI use cases were bought, not built.

Key terms

buy, boost or buildvendor lock-intotal cost of ownershipcore vs contextsystems integratormodel API

Where you meet it in the real world

Choosing a SaaS copilot over a custom chatbot, fine-tuning a vendor model on company documents, partnering with a consultancy for a first deployment, building in-house when the model is the product