Paper Type
Complete
Paper Number
1578
Description
Organizations integrating artificial intelligence (AI) services to optimize their performance regularly face a make-or-buy (MoB) decision, whether they develop AI services internally, purchase from external providers, or decide on a combination of both. The literature lacks detailed knowledge on how MoB decisions for AI-based services are uniquely influenced. We conducted a case study in a large mobility and logistics organization to derive these factors. We interviewed 16 experts on AI and MoB decisions to validate existing factors regarding MoB for IT and identify additional factors specific to AI services. Our findings suggest that strategic importance and data security are particularly relevant when making MoB decisions for AI services. In addition, the latter and case differentiation are specific factors we identified for AI services. The guidelines derived from our study provide a framework for organizations and scholars to evaluate MoB for AI services for informed decisions that align with their strategy.
Recommended Citation
Gräf, Miriam; Mehler, Maren; and Ellenrieder, Sara, "AI Strategy in Action: A Case Study on Make-or-Buy for AI-based Services" (2024). PACIS 2024 Proceedings. 8.
https://aisel.aisnet.org/pacis2024/track01_aibussoc/track01_aibussoc/8
AI Strategy in Action: A Case Study on Make-or-Buy for AI-based Services
Organizations integrating artificial intelligence (AI) services to optimize their performance regularly face a make-or-buy (MoB) decision, whether they develop AI services internally, purchase from external providers, or decide on a combination of both. The literature lacks detailed knowledge on how MoB decisions for AI-based services are uniquely influenced. We conducted a case study in a large mobility and logistics organization to derive these factors. We interviewed 16 experts on AI and MoB decisions to validate existing factors regarding MoB for IT and identify additional factors specific to AI services. Our findings suggest that strategic importance and data security are particularly relevant when making MoB decisions for AI services. In addition, the latter and case differentiation are specific factors we identified for AI services. The guidelines derived from our study provide a framework for organizations and scholars to evaluate MoB for AI services for informed decisions that align with their strategy.
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