Nowadays, when you hear “AI,” you no longer imagine some futuristic solutions that are awaiting us in the future. It is already here in our everyday lives. AI is shaping businesses and industries, optimizing different operations, and helping businesses stay ahead of the competition while automating manual processes.
There are various approaches when it comes to implementing custom AI solutions. The biggest question that pops up is whether you should go for an off-the-shelf AI solution or invest in a custom-built one. Of course, both options have their own pros and cons. However, the right choice depends solely on your business needs, budget, and long-term goals.
This article is about to break it down and help you decide what works best for your business. So, buckle up and get ready to discover more about AI solutions to boost your company.
Defining AI Software
We are sure you know that AI stands for artificial intelligence. So, what is AI software? It refers to various applications that use artificial intelligence technologies for different purposes. These purposes include processing data, recognizing patterns, and making decisions with minimal human intervention. For sure, there are other specific usages of AI software that vary depending on your business objectives and peculiarities. Such solutions range from chatbots and recommendation engines to complex machine-learning models and natural language processing. However, to summarize, the primary purpose of AI software is to automate, optimize, and improve operations and decision-making processes.
Before we dive deeper into the types of AI software, let us get you acquainted with them in advance. They typically fall into three categories:
#1 Custom AI solutions (these are completely tailored for specific business needs)
#2 Off-the-shelf AI solutions (such solutions are already ready for immediate use)
#3 Hybrid AI solutions (obviously, they combine elements of both into an efficient blend)
Ready to discover more? Let’s take a closer look at the differences between off-the-shelf software vs custom AI software. We hope we’ll help you decide which works best for your business.
Types of AI Solutions: Key Features Defined
Custom AI solutions
As we have already briefly mentioned, custom AI solutions are developed from scratch to meet the unique needs of a business. When developing such, software specialists design them, aligning everything with industry-specific data, business logic, and workflow requirements in mind.
The process of creating custom AI software may take some time, but it is more than worth it. To grasp a better picture of them, let us provide you with the key features of custom AI solutions.
#1 They are fully tailored to specific business processes.
#2 Such software is designed to scale and change as your company grows and upgrades.
#3 One of the key features is that they are built with proprietary custom algorithms and datasets.
#4 Custom AI solutions require a higher initial investment. However, it delivers a long-term competitive advantage.
Ready-to-use AI solutions
Unlike custom solutions, off-the-shelf AI ones are pre-built applications. What does it mean? Basically, companies can purchase and integrate them with minimal customization. Such solutions work best when you don't have time to spare for a custom project and need immediate solutions. This approach can be used when you need to optimize manual processes within your company, for example.
For a better understanding, let’s discover the main features off-the-shelf AI solutions have to offer.
#1 They provide quick deployment and are super easy to use.
#2 You need to pay a relatively low initial cost.
#3 It is a bit limited in flexibility and customization, though.
#4 Such solutions are often presented as SaaS (Software as a Service) products.
Hybrid AI solutions
As you have already understood, hybrid AI solutions combine elements of both custom and off-the-shelf ones. An example of such solutions may be given when businesses use an off-the-shelf AI model but customize certain aspects of it to fit their specific needs and processes. Sounds like a great option when you need an immediate solution that still lacks some features for your project.
When speaking of hybrid AI solutions, we would also like to specify their key features.
#1 Unlike fully custom AI software, it provides a faster implementation.
#2 Hybrid software offers more flexibility than off-the-shelf AI.
#3 Combining the features of both options, hybrid AI has a moderate cost.
#4 You don’t require much effort for integration.
Custom AI vs. Off-the-Shelf: Comparing Their Pros And Cons
The best way for you to understand which option works best for you is to get accustomed to the advantages and disadvantages they provide. You should understand your time constraints, budget capabilities, strategic goals, and business needs. It is also important to note that about 63% of businesses opt for custom software over off-the-shelf applications. Nevertheless, the ball is in your court and it’s only your and your software partner’s decision to make who wins: off-the-shelf vs custom AI software development.
Off-the-shelf AI: pros and cons
Advantages of ready-to-use AI solutions:
#1 Affordable option
They require quite low upfront costs (especially compared to custom AI)
#2 Swift implementation
Ready-to-use solutions can be deployed in a matter of days or weeks.
#3 User-friendly
Like any other application, they are designed with non-technical users in mind.
#4 Regular updates
All the updates are managed by the vendor. It significantly reduces maintenance efforts and expenses.
Disadvantages of ready-to-use AI solutions:
#1 Limited customization
Sometimes, you may have to adapt your workflows to fit the software’s capabilities, even though you often need the opposite.
#2 Scalability challenges
It is not so easy to scale these solutions with your business needs.
#3 Data security risks
As the maintenance of the application is completely done by the vendor, you should remember that data is often stored on third-party servers. It may be a challenge for sensitive data (if some extra NDAs or security measures are not taken).
#4 Lack of competitive advantage
As such solutions are easy to use by any business, you may lose to competitors or find it difficult tocompete.
Custom AI: pros and cons
Benefits of custom AI solutions:
#1 Tailor-made for your business
Custom solutions are designed to match your exact needs and processes.
#2 Great accuracy
These models are trained on your specific data, which makes them accurate and brand-aware.
#3 Scalability options
Custom software provides you with a range of options to easily grow along with your company.
#4 Competitive advantage
There are many proprietary AI capabilities provided, so you can easily win over the competition.
Disadvantages of custom AI solutions:
#1 Significant investment
Startups and small businesses may find it challenging to spend so much in development costs, as custom solutions require more investment both to develop and maintain.
#2 Longer development time
It can sometimes take months only to build an application let alone the deployment and maintenance. It is a no-go option when you are in a rush.
#3 Requires profound expertise
You can't just build a custom AI app. You need to hire a dedicated team of artificial intelligence experts.
#4 Uncertain ROI at the beginning of the development
Even though there are multiple advantages of custom AI, you have to be sure about its benefits before you invest and create some prototypes to make sure it will bring the needed ROI in the future.
What Are The Cases When You Should Opt For Off-the-Shelf AI Software?
Considering its advantages and disadvantages, let us provide you with the cases when off-the-shelf solutions make the most sense.
#1 First of all, your business needs a quick artificial intelligence solution with minimal customization and maintenance.
#2 Your company has budget constraints for custom artificial intelligence software development.
#3 When your main competitive advantages are far from the AI application you adopt.
#4 When the off-the-shelf solution complies with your business needs, fits most of your business requirements, and fills in the gaps in your business operations.
What are the businesses and industries that can significantly benefit from off-the-shelf AI solutions? Let us provide you with the list:
Small and medium-sized enterprises
Retail and some e-commerce
Customer support and call centers
General diagnostics services
Chatbots for different purposes
Customer and patient management
Education and e-learning platforms
There may be other examples. The main thing to remember – it always depends on the specific goals that you’re trying to achieve.
When Do You Need To Avoid Implementing Off-the-Shelf AI?
Even though there are various ready-to-use solutions, there are some cases when there’s no use for them. Let us break them down.
#1 First of all, your industry has highly specialized processes (it means that generic solutions cannot handle industry-specific tasks).
#2 Your company requires complete control over data security and compliance.
#3 If you notice that you need to adjust your company’s workflows and operations to an AI application (and not the other way around), it means this AI software doesn’t work for you.
#4 Your business starts growing, and the solution doesn’t scale well and cannot meet your needs anymore (it is essential to consider that at the early stage of development).
Tailored for your business.
What Are The Cases When You Should Choose Custom AI Solutions?
In the same way, as we’ve done with off-the-shelf solutions, we’ve considered all the advantages and disadvantages of custom AI to provide you with cases when custom software makes sense.
#1 At the center of your business strategy is AI.
#2 If you need a unique AI-driven solution to stay ahead of the competition, you should definitely choose software development from scratch.
#3 Your business processes and industry requirements are too specific and advanced for pre-built solutions.
#4 When your company handles sensitive data on a regular basis, you definitely require full control over security and compliance. That is why custom AI service is your go-to option.
#5 You represent a business that is dynamic and requires a scalable solution that grows with your company.
There are plenty of businesses and industries that will find custom solutions work best for them:
Large enterprises (especially those with AI-driven business models)
FinTech and banking (especially for risk assessment and fraud detection)
Healthcare and pharmaceuticals for personalized plans
Cybersecurity
Legal businesses and compliance services
Supply chain and logistics
High-tech and innovation-driven startups
We would like to highlight that the best way to decide what is the most appropriate choice for you is to contact a software company for consultation.
When Is There No Sense In Selecting Custom AI Product Development?
We can’t help mentioning that our suggestions are based solely on technology understanding and experience. However, there are some cases when it’s better to avoid implementing custom software.
#1 You represent a business that needs AI quickly and cannot afford long development times.
#2 When the potential ROI is lower than the cost of custom product development, it is better to avoid custom solutions.
#3 After considerations and estimations, you notice that a ready-made AI solution already meets 80-90% of your needs, there’s no sense in developing a custom one.
#4 Your business lacks the technical expertise to maintain a custom AI solution, and you are not ready (or cannot afford) to hire a software partner for support services.
Your Dedicated Custom AI Development Partner: OTAKOYI And Benefit We Bring
It is crucial to choose the right AI solution. It is a big decision so you should make it alone. That is when OTAKOYI comes into the game! We specialize in bringing the best out of your business by developing top-tier bespoke AI solutions.
The benefits you get when working with us:
#1 Tailored AI solutions
#2 Scalable and flexible products
#3 Expert AI team with profound business and industry expertise
#4 End-to-end custom AI development services
#5 Security and regulatory compliance measures
#6 Ongoing maintenance and optimization
No matter what you need – a custom-made AI model or a hybrid solution, our team is here for you! Let us drive real business results while you focus on your main responsibilities.
Wrapping Up
While it is so easy to get lost in the wide range of options available, remember – there’s no one-size-fits-all option, especially when it comes to AI. Analyze, consult, and choose what works best for you!
Off-the-shelf AI is great for businesses that need quick and affordable solutions with minimal customization, and custom AI, at the same time, works great for companies that need scalability, accuracy, and a competitive edge. We are sure you can make an informed decision and maximize your AI investment when partnering with an experienced provider like OTAKOYI.
