Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/331248 
Year of Publication: 
2025
Series/Report no.: 
ITS 33rd European Conference 2025: "Digital innovation and transformation in uncertain times", Edinburgh, UK, 29th June – 1st July 2025
Publisher: 
International Telecommunications Society (ITS), Calgary
Abstract: 
The use of Generative AI (GenAI) in recent years has significantly reshaped workflows across multiple industries, enhancing productivity and competitiveness. Enterprises commonly face the strategic decision to either build proprietary GenAI solutions or buy these services from established vendors. This paper proposes a techno-economic quantitative decision-making framework designed to clarify the "build vs buy" dilemma by quantifying the value derived from GenAI implementations, based on the employee productivity increase. We introduce a model that evaluates the break-even point, the specific number of employees whose cumulative productivity gains justify transitioning from purchasing external GenAI services to building in-house solutions. Our analysis indicates that this threshold varies distinctly by departmental functions and organizational size. Ultimately, this research aims to equip enterprises with actionable insights to inform strategic decisions about GenAI investments.
Subjects: 
Artificial Intelligence
automation
productivity
technology adoption
investment
strategy
Document Type: 
Conference Paper

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