Custom AI Software vs Off-The-Shelf AI Solution

To flourish in today’s fast-paced business world, you need to integrate artificial intelligence into your workflow. To do so, you have two main options: invest in custom AI software or use an off-the-shelf solution. However, determining which is best suited to your business’s needs is challenging, as they both have several advantages and drawbacks.

For example, let’s compare the cost of custom and off-the-shelf AI solutions. Off-the-shelf solutions are generally cheaper with a lower initial outlay than custom AI solutions. Additionally, they are also ready for use compared to custom solutions that have a higher initial outlay and have a development phase before it is available for use.

We’ve compiled a list of the key benefits and disadvantages of custom AI software and off-the-shelf AI solutions. By reading this article, you’ll gain an in-depth understanding of what AI solutions are available and which are more appropriate for your business. Keep reading to learn more.

What Is Custom AI Software?

Custom AI software refers to an AI-integrated application that has been built from scratch with functionality tailored to a specific need. Custom software requires an extended development time but delivers highly specific and effective functionality to solve unique problems. What’s more, custom AI software can be made to serve any use case across a wide range of industries.

Advantages of Custom AI Software

Let’s start by exploring the many advantages of custom AI software. From tailored functionality to better controls, developing bespoke AI software is an excellent choice for businesses looking to enjoy long-term prosperity and increase their overall productivity.

1. Tailored to Specific Needs: Custom AI software offers functionality tailored to your business’s unique needs and workflow requirements. While you may share some common needs with other businesses, all businesses are different – developing custom AI software helps to address your needs logically and effectively.
2. Higher Flexibility and Scalability: When building your own custom AI application, you benefit from a high level of flexibility and scalability. This means that as your user base grows, so too can your software. For instance, you may identify a need for new AI-powered features to satisfy greater automation requirements. With custom software, you can fully integrate new functionality.
3. Competitive Advantage: Around 63% of businesses opt for custom software over off-the-shelf applications. While this is a significant number of businesses, it leaves almost 40% of companies operating without custom functionality. When you consider AI requirements, this figure likely rises. As a result, investing in custom AI software gives you a competitive advantage by enjoying features other businesses cannot.
4. Integration: With custom AI software, you have complete control over its integrations. Consequently, if you’d like your new AI system to work alongside your existing systems, it can be developed accordingly. If you’re using an off-the-shelf product, integrating with certain systems may be difficult if their application programming interfaces (API’s) are not readily available.
5. Ownership and Control: When you develop your custom AI software, you have complete control over its functionality and use, and ownership of its intellectual property. As a result, you’re free to use the software however you please without breaking any terms of service agreements. You may also implement and remove users or functionality as and when required.

The discussed benefits of custom AI software ensure that businesses can get the most out of artificial intelligence while streamlining daily business operations. Ultimately, custom AI software offers a solid long-term approach to workflow optimization, keeping you ahead of the competition.

Challenges

While custom AI software brings many benefits, it’s not all sunshine and roses. You should be aware of several challenges when considering bespoke AI solutions for your business.

1. Higher Initial Investment: Building custom AI software comes with a high initial investment cost, meaning you’ll need to plan your software development budget carefully. Costs to consider include labor, server hosting, licensing, and ongoing maintenance fees.
2. Longer Development Time: Unlike readily available off-the-shelf software, custom AI software must be developed from scratch, which can take a long time. It generally takes between three to six months to build a custom application, and may take longer where artificial intelligence is also integrated.
3. Maintenance and Updates: When using an off-the-shelf application, it’s up to the service provider to ensure it is well-maintained and functioning correctly. With custom software, however, maintenance and updates are down to you, meaning that you need to continuously monitor your software and provide user support.

Generally speaking, the many advantages of custom AI mitigates the difficulties discussed above However, this depends on your business needs and goals.

What Are Off-The-Shelf AI Solutions?

Off-the-shelf AI solutions are pre-made applications that contain artificial intelligence integrations and functionality. They are readily available, require little to no setup, and usually cost a small monthly fee. Alternatively, off-the-shelf AI solutions can offer desktop applications that are accessible after purchasing a lifetime license.

Advantages

Off-the-shelf AI solutions present several advantages over custom AI solutions but should be carefully considered due to the challenges that we’ll discuss later. From lower initial costs to large communities of support, here are the core benefits of off-the-shelf AI solutions.

1. Lower Initial Cost: Off-the-shelf software comes with a significantly lower initial cost than custom software. Typically, you’ll need to pay a small ongoing monthly fee to access off-the-shelf software and gain access to its tools. While in the short term, this is a cost-effective option, in the long term the cost quickly adds up.
2. Faster Implementation: After paying the monthly fee asked by the service provider, you gain immediate access to the software. So, there is almost no implementation time for off-the-shelf software unless you want to integrate your own systems with your off-the-shelf software using its available APIs.
3. Established Functionality: Off-the-shelf applications feature pre-established functionality created for general use and tailored to a broad spectrum of businesses. This means that its functionality is usually proven to be of high quality and is reliable. However, one size doesn’t fit all, and off-the-shelf software often leaves much to be desired, especially if you operate a niche business.
4. Vendor Support and Updates: When using pre-made software, support and updates are the responsibility of the  service provider. This means that when an issue arises, it’s not your responsibility to fix the system. While this is great for your budget, it’s not always great for your time as you have no power over what fixes are expedited.
5. Community and Ecosystem: With longstanding existing systems, there often come large community forums that you can use to seek advice when you encounter issues. For example, if you’re unsure how to use a particular feature, you can turn to community forums for help.

To summarize, when comparing custom AI software vs off-the-shelf AI solutions, off-the-shelf AI solutions offer lower initial costs. They also provide rapid implementation, established functionality, vendor support, and access to large user communities. While these benefits provide convenience and cost savings, businesses must weigh them against potential limitations in customization and control, especially for niche applications.

Limitations

We’ve already mentioned that there are some drawbacks of off-the-shelf AI software, so let’s explore what challenges you can expect.

1. Lack of Customization: The most obvious limitation of off-the-shelf software is that you have no control over its functionality and how you use the application. Some features may help satisfy business needs. However, to make the most of the software, you’ll likely need additional functionality more suited to your exact business.
2. Potential Integration Issues: Off-the-shelf applications do not always include the necessary integration like custom software and API options to enable a smooth integration with your existing systems. As a result, you may encounter integration problems.
3. Dependency on Vendor: When using off-the-shelf software, you are bound by the service provider and entirely dependent on their business decisions. What they may feel is right for their profits and software may not be correct for your company. As a result, cultural and functional incompatibility issues can arise.
4. Potential for Overkill: You may be paying for more features than you need, making off-the-shelf software less cost-effective than custom AI software. For instance, you can build a minimal viable product (MVP) that requires the least amount of resources possible while still giving you all the functionality you need.

While some advantages of off-the-shelf software are beneficial, the disadvantages may prevent your business from achieving its full potential.

Key Considerations When Comparing Custom AI Software vs Off-The-Shelf AI Solution

Before deciding whether to opt for off-the-shelf software or invest in a custom AI application, there are several key things to first consider.

• Budget and Resources: How much can you afford to commit to a custom AI solution from your budget? You’ll need to outline your software development budget clearly to understand what fits within your project budget. If you have to build a stripped-back application, off-the-shelf may be a more appropriate choice.
• Specific Business Needs and Goals: If your business’s AI needs are rudimentary or highly common, an off-the-shelf application is likely to be available that will satisfy your needs. However, no off-the-shelf tool will perfectly fit your business model or workflow.
• Time-To-Market Requirements: How quickly do you need your AI software in operation? If you need to integrate AI into your business immediately, even at the cost of specialist functionality, off-the-shelf software is an excellent choice. When choosing the custom AI route, development time can be inconvenient. But, if you are willing to wait, the custom AI route can enable you to obtain AI functionality that perfectly syncs with your business.
• Scalability and Future Growth: How do you plan to use the AI-powered software in the long run? If you’re looking for a short-term solution that requires little scalability and growth options, off-the-shelf AI tools are the right choice. If, however, you want to invest in the long-term growth of your business and AI application, then you should follow the custom AI route.
• Integration Capabilities: Do you have existing systems that you want to integrate with AI functionality? If the answer is yes, you should consider investing in a bespoke AI solution, as it can be tailor-made to function with your existing business tools. While some off-the-shelf applications offer developer APIs, they are generally more difficult to integrate with other software.

By answering the above questions and reviewing your requirements, you can accurately determine what type of AI-powered software will best benefit your business.

Let Idea Maker Be Your Custom AI Development Partner

If you’ve decided that bespoke AI solutions are the route for you, you’re in the right place. At Idea Maker, we have a team of software development and artificial intelligence experts dedicated to delivering quality applications. If you’d like to learn more about how our services can help your business, Schedule a free consultation today if you’d like to learn more about how our services can help your business.