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Guides / Build vs Buy in the AI Era

Guides · POV

Build vs Buy When Building Just Got Cheap.

Ask who patches it in year three.

Build-versus-buy has four cost columns and AI moved one of them. Producing the first working version got dramatically cheaper. Reviewing it got harder, owning it got no cheaper at all, and exiting the alternative is still the number nobody prices. Three separate stories dominating the discourse right now — vibe coding, AI slop, and pressure on per-seat enterprise pricing — are the same structural fact seen from three angles, and each of them pushes this decision in a direction the arithmetic does not support.

Build vs Buy When Building Just Got Cheap: the produce column fell, the own column did not

30-SECOND POV

  • One column fell, and it was the cheap one. Authoring was never the bulk of total cost. Cutting the smallest line hard moves the total less than it feels like it should, and moves the maintenance line not at all.
  • Review capacity is the new binding constraint. A team can now generate far more code than it can meaningfully review. Code nobody truly reviewed is the most expensive kind to own, because nobody holds a model of it.
  • The vendor-pricing argument cuts both ways and gets used one way. "Their seats are under pressure, so build it" prices our build at generation cost and their product at list. Both halves mismeasured, in the same direction.

The column that fell was never the expensive one

The reason build-versus-buy resisted a generation of tooling improvements is that the decision was never dominated by the cost of writing code. It was dominated by everything that happens after: the upgrade you did not plan, the security advisory on a transitive dependency, the quarter where the one person who understood the module left, the integration that has to be rewritten because an upstream API changed. Writing was the visible line because it was the one you scheduled. It was not the big line.

So when a tool cuts authoring cost by eighty percent, the honest effect on the total is smaller than the feeling it produces, and the feeling is what is currently driving decisions. The build case gets rewritten around the demo, which is real, and quietly keeps the old assumptions about everything downstream of the demo, which are now worse rather than unchanged.

FOUR COLUMNS, ONE MOVED

What actually changed, line by line

Run your own build case against this. If it only revises row 01, it is not a cost model, it is a demo with a budget attached.

01

Produce the first version

Before: Weeks of engineering time. The visible, budgeted, argued-over line.

Now: Days or hours. Genuinely, dramatically cheaper. This is the column everyone is looking at.

02

Review and accept it

Before: Roughly proportional to what was authored, because authoring was the bottleneck.

Now: Now the binding constraint. Output volume rose; the number of people who can competently review it did not.

03

Own it in year three

Before: The largest line in the model, and the one that sinks build cases.

Now: Unchanged at best. Worse where code shipped that nobody holds a mental model of.

04

Exit the alternative

Before: Rarely priced at all. Discovered later, during the migration.

Now: Still rarely priced. Still the number that decides whether the vendor premium was worth paying.

Vibe coding removed the signal that said "not done"

The useful thing about a hand-built prototype was that it looked like a prototype. Rough edges were information. A reviewer could tell at a glance how far from production it sat, and that glance did real work in a build-versus-buy conversation, because it stopped anyone mistaking a proof of concept for evidence about total cost.

Generated code arrives formatted, commented and plausible at the stage where the old artefact looked obviously unfinished. That is a genuine improvement in one sense and the removal of a signal in another. The demo is not making a false claim about what it does; it is saying nothing at all about what it will cost, and it is now saying nothing while looking confident. If you want the practitioner version of where this holds and where it breaks, with real numbers, that is the vibe coding experiment rather than this page.

AI slop is a maintenance-column story

Slop is plausible, voluminous, unreviewed output. In a codebase it is the pull request that passes CI, reads well, and encodes an assumption nobody checked. Treated as a quality complaint it sounds like taste. Treated as a cost line it is precise: it moves the maintenance column upward at exactly the moment the authoring column falls, which is the worst possible timing for a decision that trades one against the other.

The mechanism is a shift in what is scarce. Authoring used to be the bottleneck, so review capacity was roughly sufficient by accident. Now a team can produce far more than it can absorb, and the deficit does not show up as a failed build. It shows up two years later as a module that works, that nobody has a mental model of, and that therefore cannot be changed cheaply or safely by anyone. That is the definition of an expensive asset. The debt mechanics of this, and how to measure the debt, are covered on technical debt in the AI era.

The practical consequence for a build case is one line: if the case assumes AI-accelerated authoring, it must also carry the review load that authoring creates. A model with the speedup and without the review cost is not optimistic, it is incomplete.

The seat-pricing argument, used honestly

Per-seat enterprise pricing rests on an assumption worth stating plainly: that value scales with the number of humans doing work inside the tool. Agents weaken that link. The work still happens, the seat count does not rise with it, and in some workflows it falls. This is a real structural pressure, and the visible response is that major suite vendors have been adding consumption-priced agent products beside their seat-priced suites rather than simply raising seat prices. Salesforce's Agentforce is the most-discussed example, and we cover the skills market around it in the Agentforce certification guide.

What does not follow is the conclusion most often drawn from it. "Their pricing power is weakening, therefore we should build it ourselves" compares our build at generation cost against their product at list price. Two errors, pointing the same way. If seats are mispriced for the agent era, the correct first move is to renegotiate against that fact, which is cheap and reversible. Building is neither.

There is also a quieter asymmetry. When a vendor's product ages badly, you switch, and the cost of switching is a number you can demand up front. When your own build ages badly, there is nobody to switch to. You are the vendor, and the migration is yours to fund. Pricing the exit from the buy option, in weeks and euros, is the single most useful thing most build cases are missing — and it is the number the vendor premium was actually purchasing.

The four questions

Who patches it in year three? Require a name, not a team. Teams reorganise; the question is whether a specific person will hold the model of this system when the person who generated it has moved on. If the honest answer is "nobody yet", that is the cost, and it belongs in the model rather than in the risk register.

Is this a differentiator or a commodity? Flexibility costs money and is only worth buying where you actually compete. Be flexible in the differentiators and ruthlessly standard everywhere else. A build justified by "we'd have full control" over something no customer will ever notice is paying for optionality with no option value.

What is the review load, not the authoring load? Estimate the build in reviewer-hours by people who will still be there next year. That number moved far less than the authoring estimate, and it is the one that predicts whether the thing gets owned or merely gets shipped.

What does exit cost, in weeks and euros? Ask it of the buy option, get it in writing, and then ask it of the build option too, where the answer is usually worse and almost never written down.

Adjacent reading: one-way doors for AI decisions on which choices deserve this scrutiny at all, and vendor capture risk on what happens when the exit number is never asked for.

Build vs Buy in the AI Era: FAQ

Has AI changed the build vs buy decision?
It has changed one column of it, which is why so many of these decisions are now being made wrong. AI collapsed the cost of producing the first working version of a feature. It did not change the cost of owning that feature in year three: the patching, the dependency upgrades, the security response, the person who understands it well enough to change it safely. Build-versus-buy was never mainly a question about the cost of writing code, because writing was already the cheap part of the total. Cutting the cheapest line in the model by eighty percent moves the total far less than it feels like it should, and it moves nothing at all on the maintenance side, which is where the money actually was.
Does vibe coding make building cheaper than buying?
It makes producing cheaper. Producing and owning are different line items and only one of them got cheaper. A demo generated in an afternoon is real evidence about time-to-first-version and no evidence at all about time-to-fifth-year. The specific trap is that the artefact now arrives looking finished — formatted, commented, plausible — at a stage where a hand-built prototype would still look obviously unfinished, so the signal that used to tell a reviewer "this is not done" has been removed. The demo is not lying about what it does. It is silent about what it will cost, and it now looks confident while being silent.
What is AI slop and why does it matter to a build vs buy decision?
AI slop is generated output that is plausible, voluminous and unreviewed. In a codebase it is the pull request that passes CI, reads fluently, and encodes an assumption nobody checked. It matters to build-versus-buy because it moves the maintenance column in the wrong direction at the same moment the build column falls. Review capacity, not authoring capacity, becomes the binding constraint: a team can now generate far more code than it can meaningfully review, and code that was never truly reviewed is the most expensive kind to own, because nobody on the team has the model of it in their head. If your build case assumes AI-accelerated authoring, it has to also assume the review load that authoring creates, or it is not a cost model.
Are enterprise SaaS vendors losing pricing power to AI?
The structural pressure is real, though it is more specific than "SaaS is dead". Per-seat pricing rests on an assumption that value scales with the number of humans doing the work in the tool. Agents weaken that link: the work still happens, the seat count does not rise with it, and in some workflows it falls. That is why the major enterprise vendors have been adding consumption-priced agent products alongside their seat-priced suites rather than only raising seat prices. But the buyer conclusion that gets drawn from this is usually wrong. "Their pricing power is weakening, so we should build it ourselves" prices our build at generation cost while pricing their product at list price. Both sides of that comparison are being mismeasured in the same direction.
What should a CTO actually ask in a build vs buy decision now?
Ask who patches it in year three, and require a name rather than a team. Then ask three questions the AI era has made sharper. First, is this a differentiator or a commodity: flexibility costs money and is only worth buying where you actually compete. Second, what is the review load, not the authoring load, of the build option. Third, what does exit cost from the buy option, measured in weeks and euros, because that number is what you are really purchasing when you pay a vendor premium. A build case that answers only "we can generate this" has answered the least expensive question in the decision.

Cost the decision, don't feel it

The demo answers the cheapest question. These handle the rest.

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Thomas Prommer
Thomas Prommer Technology Executive — CTO/CIO/CTAIO

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