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Publication date: 19 Aug 2024

Build or Buy? IDC Reveals Asia/Pacific Organizations’ Choice in GenAI Adoption

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44% of Asia/Pacific Enterprises Plan to Fine-Tune Open-Source Models, while 36% will Build In-House

SINGAPORE, 19 August 2024 – As generative AI (GenAI) technology rapidly gains traction across industries, businesses regularly confront a crucial decision: whether to build their own GenAI solutions or buy existing ones. This decision is influenced by a myriad of factors, including data availability, budget constraints, in-house skills, and specific industry needs. This IDC report, Build Versus Buy Approaches for Functional and Industry Use Cases: Approaches for Generative AI Adoption, distills key insights and offers actionable recommendations to help enterprises navigate the build vs. buy dilemma.

"Deciding whether to build from scratch and leverage existing platforms is a strategic decision driven by factors such as data, skills, budget, and time-to-value,” says Deepika Giri, Head of Research, Big Data & AI, IDC Asia/Pacific. “Competitive industries with large IT budgets and in-house talent, like banking, telecom, life sciences, media, and manufacturing, often invest in custom solutions. Consumer-focused industries with smaller budgets typically fine-tune existing models or create tailored solutions. Early adopters with advanced digital capabilities can quickly exploit GenAI for a competitive edge.”

More key highlights from the report:

1. Approximately 36% of Asia/Pacific organizations build their GenAI models from scratch, while 44% of regional enterprises fine-tune open-source GenAI models.

2. Half of Asia/Pacific organizations will prefer to leverage infrastructure provided by a SaaS or AI platform vendor.

  1. Platforms with models and supplemental third-party data are preferred by approximately 48% of Asia/Pacific organizations. These platforms fall within the buy/fine-tune spectrum and require minimal customization.

4. Strengthening the data value chain through integration, governance, and quality assurance is essential for readiness in advanced GenAI use cases.

5. Assess for Security: A rigorous vetting process for model security is advisable, with a preference for vendors that offer transparency and collaborate with reputable cybersecurity partners.

This IDC Tech Buyer Presentation, Build Versus Buy Approaches for Functional and Industry Use Cases: Approaches for Generative AI Adoption (Doc #AP51035024), highlights the spectrum of strategic choices tailored to each enterprise's unique circumstances. This report outlines key implementation strategies — buying, fine-tuning, and building GenAI models — based on factors like data availability, budget constraints, and in-house skills. The report emphasizes starting with a buy approach to maximize success, while also highlighting the importance of a strong data intelligence architecture. Additionally, it advises on strategic partnerships with GenAI vendors and the importance of developing GenAI skills through external expertise.

For more information on this IDC Market Presentation, please contact Deepika Giri at dgiri@idc.com. For media inquiries, please contact Michael de la Cruz at mdelacruz@idc.com or Miguel Carreon at mcarreon@idc.com.

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About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.



Coverage


Regions Covered

Asia Pacific


Topics Covered