Artificial intelligence has thrown the traditional “build vs. buy” discussion in business into a tailspin, effectively ending it. As a founder bootstrapping my startups in the Netherlands, I've spent years weighing the pros and cons of developing custom solutions or purchasing off-the-shelf tools. Today, AI significantly alters that equation. Let’s explore why the “build vs. buy” debate no longer holds the same weight in the AI era, particularly for European entrepreneurs like you and me.
Why AI Changed the Conversation
Building software was once a complex, resource-heavy process. It required hiring entire teams, managing lengthy development timelines, and bearing the brunt of ongoing maintenance costs. Buying, while quicker, often came with compromises, tools could lack customization or rack up high subscription fees over time.
With AI, however, we’ve all been handed a sharp tool that cuts through the traditional barriers. AI simplifies, accelerates, and reduces costs for both approaches. Advanced AI systems can craft sophisticated prototypes or final solutions in weeks, sometimes days, slashing costs and deployment time to almost nothing. You don’t need to limit your business strategy because of inflexible resources anymore, instead, you can draft exactly what you need in record time and pivot to execution.
When to “Build” with AI
AI makes building things from scratch surprisingly accessible. If your project has unique requirements that aren’t addressed by existing market options, custom builds using AI-powered tools and frameworks now offer feasible solutions.
Here’s a quick look at when “building” makes sense:
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Customization Demands Are High
AI makes coding much quicker by offering automated solutions for repetitive tasks. No-code and low-code platforms like Bubble or OutSystems even allow founders, not developers, to design custom tools for nuanced requirements. -
Long-Term Scalability Matters
Off-the-shelf tools can get expensive as your team or user base grows. In Europe, where budgets are often tight for startups, AI-driven systems like the Turing AI Agent Builder give flexibility to control both scaling and expenses. -
You Have a Tech-Proficient Team
If your team has the necessary expertise, leveraging AI development platforms reduces the steep learning curve. An example is GitHub Copilot seamlessly increasing developer efficiency.
When to “Buy” with AI
Often, entrepreneurs don’t have time or resources to fully customize a solution. This is where buying tools powered by AI emerges as the better option.
Here are cases where buying wins:
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Time Pressures
Plug-and-play solutions ensure measurably faster deployments. Need a functional CRM in days rather than months? Tools like HubSpot or Freshworks’ AI-powered platform can handle operational needs immediately. -
Limited Technical Expertise
Startups led by non-tech founders, like many with whom I’ve worked in the Fe/male Switch ecosystem, will benefit from pre-packaged solutions. Skip the coding headaches; let an existing platform address your challenges instead. -
Built-in AI Enhancements
Purchased solutions now often come bundled with impressive AI functionalities, from automating customer service using Zendesk AI to optimizing supply chains. It allows businesses like mine to stay competitive without needing extensive in-house development.
Lessons Learned as a European Female Entrepreneur
Looking back at my journey, combining AI tools in creative ways has been the key to surviving and thriving while bootstrapping. These are some hard-earned lessons I want to share:
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Don’t Overcomplicate
Start small. I’ve seen founders, including myself, get bogged down trying to make the “perfect” first tool. Platforms like Canva or Miro can provide 90% of the solution right away. -
Ownership Is Key
While buying makes sense in many cases, relying too heavily on vendor tools can become a trap. Understand where building could give you more independence and build those capabilities. -
Stay Nimble
With AI developing so quickly, today’s tools might look outdated in two years. Choose solutions, whether built or bought, that enable flexibility or easy pivots to better options. -
Utilize Grants
European entrepreneurs have the opportunity to apply for grants that cover a significant portion of AI adoption costs. Leveraging programs from agencies like EU Horizon Europe has been instrumental in my AI-based projects. If you’re in the Netherlands, look into InnovationCredit funds or RVO subsidies. -
Empower Collaboration
While AI makes solo-building feasible, nothing replaces diverse input. Women entrepreneurs in Europe should actively connect with incubators or platforms like Fe/male Switch, where collaboration amplifies results.
What Mistakes Should You Avoid?
AI’s potential can also lead to missteps. These are the mistakes I see entrepreneurs making:
- Underestimating Maintenance: Even with AI, custom builds require regular updates. Ignoring this could mean system breakdowns, wasted time, or expensive fixes.
- Assuming AI Replaces Humans: Over the years, I’ve found that AI is great at repetitive tasks, but final insights and decisions still need humans behind the wheel.
- Choosing Flashy over Substance: Fancy AI capabilities mean nothing if they don’t align with your business needs.
- Skipping Data Security Checks: If you buy or build, someone will handle sensitive information. Confirm compliance requirements with trusted sources like GDPR EU Guidelines.
How to Decide: Build or Buy?
Use these steps to guide your decision-making:
- Identify your specific need. If your problem is generic, buy. If it’s niche and core to your business, build with AI assistance.
- Set realistic budgets. Calculate initial spends, scaling projections, and long-term maintenance costs for building versus licensing.
- Test free trials. Many AI tools, like Zapier Automation, offer free versions for startups. Experiment before committing cash.
- Ask other founders. Platforms like LinkedIn can connect you with peers who’ve faced similar choices.
AI didn’t just simplify the “build vs. buy” question; it flipped the script. What matters now is aligning AI's strengths with your startup’s vision while maintaining the flexibility to adapt. While many tools can get you halfway there, only founders like us can bring the insights, creativity, and decisions needed to reach the finish line.
FAQ
1. How has AI changed the "build vs. buy" discussion?
AI has simplified and expedited processes significantly by making custom builds more affordable and facilitating rapid software development. Businesses are now able to describe their needs and receive automated software solutions quickly and cost-effectively. Why buying AI solutions is often better than building them
2. When should I build a custom AI solution?
Building a custom AI solution is ideal when high customization, long-term scalability, and robust technical expertise are required within your team. AI can now automate repetitive tasks through low-code/no-code platforms like Bubble or OutSystems, which simplifies the process. Learn more about AI agents building solutions
3. When is buying an AI solution preferable?
Buying an AI solution is better when there are time constraints, limited technical expertise, or when tools with built-in AI enhancements are readily available to meet your needs. Solutions like Zendesk AI and Freshworks can address operational challenges immediately and efficiently.
4. How does AI affect cost considerations in the build vs. buy debate?
AI drastically reduces upfront development costs and maintenance needs, making custom builds more affordable. Meanwhile, buying pre-built solutions provides predictable subscription costs but may accumulate expenses over time. Discover more about AI integration and cost analysis
5. What mistakes should entrepreneurs avoid when leveraging AI tools?
Avoid neglecting regular maintenance for custom builds, assuming AI replaces human input entirely, choosing flashy features over practical solutions, and overlooking data security compliance. Entrepreneurs should ensure AI tools address specific business needs and adhere to regulations like GDPR.
6. How crucial is scalability in the "build vs. buy" decision?
Scalability is crucial because off-the-shelf tools can become costly as a business grows. AI-driven systems offer scalable solutions, allowing businesses to retain control over costs and expand their services effectively over time. Learn more about scalability with AI-powered tools
7. How can European entrepreneurs utilize funding for AI adoption?
Entrepreneurs in Europe can explore grants and subsidies, such as Horizon Europe programs or national initiatives like the Netherlands' InnovationCredit funds, to support AI adoption. These programs can offset the cost of integrating AI.
8. Does AI ensure faster time-to-market?
Yes, AI accelerates software development through automated coding and testing. This allows businesses to bring products to market more quickly, offering competitive advantages. Understand more about AI's role in time-to-market
9. Is it risky to focus entirely on vendor-based AI solutions?
Relying excessively on vendor-provided AI can be risky due to dependency issues, lack of customization, and potential disruptions in service. Balancing purchased tools with in-house developed solutions ensures flexibility and ownership.
10. Why is human involvement still essential in AI-driven processes?
While AI excels at automating repetitive tasks and processing large data sets, final decision-making and strategic insights still require human judgment. Businesses must combine AI efficiency with human expertise for optimal results.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
