Applied Artificial Intelligence: An Introduction For Business Leaders

by Mariya Yao

Should you invest in your technical capabilities and turn your organization into a technology company like Google and Amazon? Or should you stick to your core business expertise and find third-party solutions for your AI needs? Here are some criteria that will guide your decision-making process: Building Internally There are several important criteria to consider when thinking about building in-house. First, determine whether your technology is a core functionality of your business. In 2001, Target outsourced its e-commerce website to Amazon because the company executives did not see online shopping as a major revenue channel. Nearly a decade later, Target finalized realized that this was a huge mistake and took back control.(66) As a leader, you will have to judge whether the AI capability that you want to build is central to your long-term business. Second, evaluate the availability of in-house talent. There is a massive skills shortage in the field of artificial intelligence. Even if your organization has a sufficient pool of talent for core products and services, you may hesitate to deploy these scarce resources to departments such as HR or customer service. The need for technical talent extends beyond the initial build, as you’ll need specialists for ongoing maintenance and performance monitoring. Third, set a timeline for deployment. Even if your company has the talent and the data to build a custom solution, you may not have access to them until higher-priority proj...