Transparent AI Sourcing: Build vs Buy Economics When Explanations Matter

Key Points

• This research aims to compare the economic implications of sourcing artificial intelligence systems through building or buying them, emphasizing the role of explanations in decision-making.
• Detailed economic analysis of the costs associated with both building and buying AI systems.
• Comparative evaluation of the efficacy of explanations provided by each approach.
• Assessment of market conditions and technological advancements impacting the sourcing decision.
• Building AI systems offers superior explanations at a lower long-term cost compared to buying solutions.
• Organizations prioritizing transparent decision-making benefit more from a build approach.
• The findings suggest a shift in sourcing strategies focusing on the importance of explainability in AI.