Fulfilling the Promise of Generative AI 13 Balancing In-house Models With Third-party Models (continued) Leveraging Third-party Using an Open Developing a Net-new In-house Proprietary Models Source Model Proprietary Model Speed to market. Access to sophisticated AI capabilities Cost-effectiveness. Generally free to use, modify, and Complete customization. Built to spec, fulfilling the without the development time. distribute, reducing financial barriers to entry. unique requirements of the business. Pros: Less initial investment. No need for extensive research Flexibility and customization. Can be tailored to meet Competitive advantage. Offers the potential for unique and development resources upfront. the specific needs of an organization. capabilities not available to competitors. Proven solutions. Often backed by established Community support. Able to benefit from the knowledge Control over data. Data remains within the organization, companies with support and updates. and contributions of a global community of developers. mitigating privacy and security concerns. Cost over time. Licensing fees or per-use costs can add Resource intensity. Requires skilled personnel to High costs. Significant investment in terms of time, up, making it expensive in the long run. customize, maintain, and update. expertise, and financial resources for development and maintenance. Limited customization. Dependence on the provider’s Potential security risks. Open source projects might Cons: roadmap and priorities, which might not fully align with not always prioritize security updates, leading to Long development time. Can lead to slower market vulnerabilities. response compared to adopting existing solutions. specific business needs. Data privacy concerns. Sharing sensitive or proprietary Lack of formal support. Relying exclusively on Risk of failure. High investment with no guarantee of data with a third party can pose security risks. community support can be unpredictable and success; development might not result in a inconsistent. viable product. © 2024 TechTarget, Inc. All Rights Reserved. Back to contents