Welcome to another edition of the best damn newsletter in AI.

As a reminder, we’ve opened up Reader Questions. Our mission is to make using AI accessible to every business, and a huge part of that is making sure you’re not stuck and that we continue answering diverse questions. So, submit your question here. We’ll review every single one and cover answers here in the newsletter.

Here's what we're covering today:

• Why companies are building vs buying AI tools

• Pitch your AI project to 1500+ professionals

• AI's growing role in content and companionship

Let’s get to it! 👇

TODAY’S PERSPECTIVE

3 Reasons We’re Seeing More ‘Build’ than ‘Buy’

Today we’re digging into a case study in AI adoption – how and why we’re seeing companies develop their own internal versions of AI tools instead of choosing the “off the shelf” option.

A perfect example to look at is Morgan Stanley, who just rolled out their newest internal AI tool, AI @ Morgan Stanley Debrief, that summarizes video meetings and generates drafts of follow-up emails based on them. 

Yes, they could have used Fireflies, Zoom’s AI companion or even configured something in Zapier – but they chose to build internally instead. Why?

They’re not alone. More and more companies are choosing to build custom internal AI tools as opposed to buying off the shelf. 

While it’s not the best move for every company and in every scenario – we’ll break down the 3 reasons we’re seeing organizations choose to DIY instead of buy:

1. Integration challenges

2. Customizing to bring more value

3. And it’s not as expensive as it sounds

Reason #1: Integration Challenges

Companies want AI to fit like a glove into existing systems and workflows.

Every business operates differently and given AI is so workflow and productivity-centric, using disjointed solutions where you’re still having to copy/paste here or double-enter data there can decrease or even undo the productivity gains that AI is bringing in the first place.

DIYing tools get around this.

Reason #2: Customizing to bring more value

Unlike traditional software, AI tools come packed with reasoning, creativity and decision making of the tool-maker. And being conscious of whose expertise you are buying, and whether you’d rather use your own – are becoming key discussion points in organizations.

For some business functions, buying someone else’s expertise via an AI tool is good – you can feel like you have a fractional CFO without having one in house. 

But for other business functions or industries where there are specific ways of doing things – eg. ways to understand and process insights from client calls like Morgan Stanley – the ability to customize how the AI works exactly to your expertise is key.

Reason #3: DIY Doesn’t Have as Hefty of a Price Tag as You Think

Building with AI has only gotten more and more accessible over the past 24 months.

Organizations like Morgan Stanley that might have had limited AI capabilities in the past, are now able to spin up custom developed AI applications – something that would have been unthinkable prior to the ChatGPT explosion. Even for companies without dedicated engineering resources, no-code and low-code solutions like Zapier, Retool and other vertical-specific platforms have made it much easier to test out what a custom solution could mean in terms of productivity gains.

We expect to see an explosion of internal tool building in the next 18 months.

Curious about other factors driving the decision to buy vs build AI tools?

Our team has been mapping out a new decision making framework – check it out:

ANNOUNCEMENT

“Reverse Pitch” Your AI Project to Our Community of 1500+ Professionals

Do you have a project that requires an AI professional?

Consider reverse pitching it to our community!

Here’s how it works:

1. Present Your Project: Share 3-5 slides about your project and the AI expertise you need during a 30-minute Zoom call.

2. We Market for You: We’ll promote your session to our community, ensuring that interested and qualified consultants join the call.

3. Engage with Experts: Consultants will listen, ask questions, and engage with you directly during the call.

4. Receive Consultant Details: After the session, we’ll gather and share contact info and relevant experience with you from all interested consultants.

This unique format not only helps you find the right talent for your project but also ensures you connect with professionals who are genuinely interested and have the expertise you need.

If you're interested in scheduling your reverse pitch, simply reply to this email or contact us at [email protected].

We look forward to helping you find the perfect match for your AI project!

LINKS

For your reading list 📚

AI is revolutionizing search engines and data privacy is under scrutiny...

• OpenAI unveils SearchGPT, a new search feature designed to provide timely answers by drawing from web sources, aiming to compete with Google and Bing.

• Microsoft previews Bing generative search, an AI-powered feature designed to generate summaries from web information in response to user queries.

• Elon Musk's platform X opts user data into its AI training pool, raising concerns among users and regulatory bodies, particularly in Europe.

• The European Union launches a consultation to develop rules for providers of general-purpose AI models under its recently adopted AI Act.

AI is reshaping the publishing, advertising, and accessibility industries...

• Perplexity AI launches a program to share advertising revenue with news publishers when its chatbot uses their content, addressing accusations of plagiarism and unethical web scraping.

• Meta launches its AI Studio for all U.S. creators to build personalized AI chatbots.

AI is not just for productivity, it's for companionship too...

• Harvard dropout Avi Schiffmann prelaunches "Friend", an AI device designed to combat loneliness by serving as a conversational companion.

Have a burning AI question? Or stuck trying to help your team adopt AI?

We read every single question submitted and use these to inform the topics we go deep on. 👇️ Submit your question below!

That's all!

We'll see you again soon! Thoughts, feedback and questions are much appreciated - respond here or shoot us a note at [email protected].

Cheers,

🪄 The AI Exchange Team