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Feb 26, 2025

AI governance tool: build vs buy

6 min read

AI governance tool: build vs buy

Build vs. Buy: AI Governance Solutions

Making the right choice for implementing AI governance in your organization can significantly impact your ability to manage AI risks, ensure compliance, and drive innovation.

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Understanding the advantages and drawbacks of each approach will help you make an informed decision that aligns with your organization’s needs, resources, and long-term objectives.

Building In-House: Pros and Cons

AdvantagesDisadvantages
Complete customization to match specific organizational needs and workflowsSignificant upfront investment in research, development, and testing
Greater control over implementation, features, and development roadmapExtended time-to-implementation delaying governance benefits
Potential for deeper integration with existing systems and toolsRequires specialized expertise that may not exist within the organization
Intellectual property ownership of the developed solutionOngoing maintenance burden to keep up with evolving best practices and regulations
No dependency on external vendors for critical governance functionsRisk of obsolescence as governance standards evolve
Opportunity to build organizational knowledge and expertise in AI governancePotential for critical oversights due to limited experience in AI governance

Buying AI Governance Framework: Pros and Cons

AdvantagesDisadvantages
Immediate implementation of a proven governance frameworkLess customization than a fully bespoke solution
Access to specialized expertise built into the platformPotential integration challenges with legacy systems
Regular updates to keep pace with evolving regulations and best practicesSubscription costs over the long term
Lower risk with a solution that has been battle-tested across organizationsDependency on vendor for updates and support
Predictable costs through subscription-based pricingMay include features that aren't relevant to your specific needs
Dedicated support from AI governance expertsMay require process adjustments to align with the platform's workflows
Focus resources on core business rather than governance infrastructure

Detailed Comparison Table

This comprehensive comparison highlights key factors to consider when evaluating the build versus buy options for AI governance solutions.

CriteriaBuild OptionBuy Option
Time to Implementation6-12+ months depending on complexity and resources2-4 weeks for standard implementation
Upfront CostsHigh (development team, infrastructure, research)Low (subscription setup and onboarding fees)
Ongoing CostsMaintenance, updates, security, infrastructurePredictable subscription fees
CustomizationUnlimited, but requires development resourcesConfigurable within platform capabilities, API access
Expertise RequiredAI governance experts, developers, project managersPlatform administrators (training provided)
Regulatory UpdatesManual tracking and implementationAutomatic platform updates
ScalabilityDependent on initial architecture designBuilt-in enterprise-grade scalability
Risk ManagementDeveloping from scratch with potential gapsComprehensive, built on industry best practices
Support & TrainingSelf-developed, internal resourcesProfessional support, documentation, training
Integration CapabilitiesCustom built for existing systemsPre-built connectors, APIs, extensibility
Time to ValueExtended timeline to realize benefitsImmediate governance implementation
Future-ProofingRequires continuous investmentContinuously updated by specialized team

Sample cost matrix

This detailed cost breakdown provides a side-by-side comparison of the potential financial implications of building versus buying an AI governance solution.

Cost CategoryBuild Option (Estimated)Buy Option (Estimated)
Initial Development/Setup$250,000 - $500,000 (design, development, testing)Included in subscription
Infrastructure$25,000 - $50,000 (servers, security, databases)Included in subscription
Staffing (Year 1)$400,000 - $600,000 (developers, AI experts, project management)Included in subscription
Annual Maintenance$150,000 - $250,000 (updates, bug fixes, enhancements)Included in subscription
Training$20,000 - $40,000 (materials development, sessions)Included in subscription
Integration Costs$50,000 - $100,000 (connecting to existing systems)$5,000 - $25,000 (using pre-built connectors)
Annual SubscriptionN/A$5,000 - $30,000 (based on organization size)
Regulatory Updates$50,000 - $100,000 (research, implementation)Included in subscription
First Year Total$795,000 - $1,390,000$10,000 - $55,000
Three-Year Total$1,245,000 - $2,140,000$30,000 - $165,000

Note: These figures are estimates and may vary significantly based on organizational size, complexity, and specific requirements.

Decision-Making Guidance: When to Build vs Buy

Making the right choice between building and buying an AI governance solution requires careful consideration of your organization’s specific context, needs, and constraints.

When Building Makes SenseWhen Buying Makes Sense
Has highly unique governance requirements not addressed by existing solutionsNeeds to implement governance quickly to address immediate needs
Already possesses significant AI governance and development expertise in-houseWants to leverage proven best practices rather than developing them
Has substantial time available before governance capabilities are neededHas limited in-house AI governance or development expertise
Requires complete control over every aspect of the governance systemPrefers predictable costs through a subscription model
Has dedicated resources to maintain and evolve the system long-termValues ongoing updates to keep pace with evolving regulations
Has a strategic reason to develop proprietary governance capabilitiesWants to focus resources on core business rather than governance infrastructure

Key Questions to Consider

The build versus buy decision ultimately comes down to your organization’s specific circumstances and priorities. Before making your choice, we recommend thoughtfully evaluating these essential questions that will help clarify which path aligns best with your strategic goals & capabilities. 

  • What is your timeline for implementing AI governance?

  • What level of AI governance expertise exists within your organization?

  • How unique are your governance requirements compared to standard practices?

  • What is your budget for initial implementation and ongoing maintenance?

  • How important is it to have the latest regulatory updates automatically incorporated?

  • What internal resources can you dedicate to governance long-term?

  • How critical is integration with your existing systems and workflows?