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AI-BUILD-VS-BUY5 MIN READ

Place AI vendors on the impact-risk matrix

Classify AI sourcing options by business impact and supply risk to choose the right procurement stance.

Supply risk Business impact Low High Leverage High impact / Low supply risk Use competition and benchmarks. Example: mature AI analytics add-on with several credible vendors and strong business value. Strategic High impact / High supply risk Partner deeply, demand evidence rights, change notice, continuity, and exit planning. Example: AI underwriting or claims-triage system. Routine Low impact / Low supply risk Simplify controls and buying path. Example: internal meeting summary tool with limited data scope and many substitutes. Bottleneck Low impact / High supply risk Contain dependency or substitute. Example: niche AI extractor for one regulatory report with limited alternatives…

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