Transparent AI Sourcing: Build vs Buy Economics When Explanations Matter

Key Points

• This research aims to evaluate the economic considerations when deciding to build or buy AI systems, particularly focusing on the role of explanations in decision-making.
• Analyzed economic models comparing build versus buy strategies for AI solutions.
• Evaluated the significance of transparent AI explanations in various applications.
• Building AI systems tends to be costlier but offers greater control over explanations.
• Buying pre-built AI solutions can be more economical but might lack desirable transparency in explanations.