Despite AI lowering the barrier to coding, replacing dozens of SaaS subscriptions with self-hosted apps is a poor business decision. The opportunity cost of diverting focus from growing MRR, which creates significant enterprise value, far outweighs any potential cost savings from not paying for third-party tools.

While it's tempting to build custom AI sales agents, the rapid pace of innovation means any internal solution will likely become obsolete in months. Unless you are a company like Vercel with dedicated engineers passionate about the problem, it's far better to buy an off-the-shelf tool.

The opportunity cost of building custom internal AI can be massive. By the time a multi-million dollar project is complete, off-the-shelf tools like ChatGPT are often far more capable, dynamic, and cost-effective, rendering the custom solution outdated on arrival.

Companies will adopt a hybrid "build vs. buy" approach. They will use AI agents to build bespoke, simple software "screwdrivers" for specific workflows on the fly, eliminating many niche SaaS tools. However, they will continue to "rent" large, foundational platforms like ERPs and CRMs, which serve as heavy-duty "trucks."

Advocates for buying most AI agents off the shelf to leverage existing solutions. Building should be reserved for the small fraction where no suitable tool exists, where you can replace a mediocre incumbent, or where proprietary data is a key advantage.

The current excitement around AI is fueling a “build it yourself” trend, echoing past tech cycles. This approach often overlooks the significant long-term costs of maintenance, versioning, security, and 24/7 support, which previously led companies to abandon homegrown systems for specialized vendors.

The traditional wisdom to "build what's core" to your business is becoming obsolete for AI. The immense cost and rapid advancement of foundational models by major labs mean most companies are better off buying or partnering for core AI capabilities rather than attempting to build them in-house.

When deciding whether to build or buy an AI tool, purchase stable, undifferentiated infrastructure (like a dialer). In-house resources should focus on building proprietary intelligence that creates a unique competitive advantage, such as a custom pre-call research model tailored to your specific customer profile.

The ability to rapidly build custom software with AI is tempting. However, the ongoing maintenance and data quality assurance are the core business of SaaS companies. Buying a dedicated tool like a CRM often provides more value and less overhead than a custom-built solution, even with AI assistance.