With the rapidly evolving landscape of artificial intelligence in the language services industry, the decision to build or buy AI solutions has become a crucial consideration for companies. The Phrase Blog delves into the intricate challenges and strategic decisions enterprises face when investing in AI technology. The core argument centers on the balance between creating internal AI assets and leveraging existing platforms to optimize operations and scale efficiently.

Stephen Lumenta, Chief Product and Technology Officer at Phrase, emphasizes that every internal AI build creates both assets and liabilities. This sentiment is echoed throughout the industry, where companies like Pega, an enterprise software firm with over 5,000 employees, have adopted the Phrase Platform to significant success. Reports indicate that Pega has achieved a 75% reduction in translation turnaround times by harnessing the capabilities of Phrase, processing 14 million words via the Phrase Portal in one year and more than doubling their translation volume year over year. This exemplifies the substantial efficiency gains that can be realized by choosing to buy rather than build.

For Day Translations, founded by Sean Hopwood in 2007, the strategic decision to understand and cater to client needs is a guiding principle. Hopwood's approach advocates for a dynamic response to client requirements, which he encapsulates in his advice: "Make an adjustment, find out what the client wants and give them what they want." The decision to leverage external platforms like Phrase can be a strategic response to meet customer demands effectively. Hopwood also reflects on the missed opportunities from not adopting such tools sooner, saying, "If we had adopted these tools earlier, it would have made a big difference."

Scott Kinka, Chief Strategy Officer of Bridgepointe Technologies, highlights another critical challenge: the misconception that building is a one-time event. This perspective can lead enterprises to underestimate the ongoing commitment needed to develop and maintain in-house AI solutions. The dynamic nature of AI technology necessitates continuous updates and scaling, adding to the liabilities mentioned by Lumenta. Therefore, the decision between building internally and adopting external solutions like Phrase is not just a financial judgment but also a strategic one, heavily dependent on a company's capacity to sustain and evolve its technology assets over time.