Developing Internal AI Expertise: Build vs Buy vs Partner

A mid-sized company recently asked me how they should approach building AI capability for their organisation.

“Should we hire AI experts? Train our current people? Bring in consultants? We don’t know where to start.”

This is the classic build vs. buy vs. partner decision—and with AI, the right answer varies significantly by organisation context, timeline, and needs.

Let me share a framework for thinking through this decision.

The Three Approaches

Build: Develop Internal Expertise

Develop AI capability among existing employees through training, development programmes, and experiential learning.

Advantages:

  • Leverages existing organisational knowledge
  • Builds sustainable internal capability
  • Often more cost-effective long-term
  • Employees invested in organisation success
  • Capability retained even as individuals grow

Disadvantages:

  • Takes time to develop
  • Quality of outcome uncertain
  • May lack exposure to best practices
  • Limited by existing talent pool
  • Requires significant L&D investment

Buy: Hire External AI Talent

Recruit people with existing AI expertise from the market.

Advantages:

  • Brings immediate capability
  • Introduces external perspectives
  • Access to scarce specialised skills
  • Faster capability acquisition
  • Often brings networks and knowledge

Disadvantages:

  • Expensive in competitive talent market
  • May lack organisational context
  • Risk of mis-hire
  • Cultural integration challenges
  • May leave for better opportunities

Partner: Engage External Providers

Work with consultants, agencies, or vendors to access AI expertise without permanent hiring.

Advantages:

  • Flexible capacity
  • Access to specialised expertise
  • No long-term commitment
  • External perspective and benchmarks
  • Can scale up or down

Disadvantages:

  • Expensive for ongoing needs
  • Knowledge may leave when engagement ends
  • Less organisational context
  • Potential dependency
  • May not transfer capability internally

Factors Affecting the Decision

No universal answer exists. Consider these factors:

Timeline Requirements

How urgently do you need AI capability?

Urgent (weeks): Partner is often the only realistic option. Building and buying both take months.

Near-term (months): Buying or partnering can work. Building starts but won’t deliver quickly.

Long-term (years): Building becomes more viable and often preferable. All approaches can contribute.

If you need capability yesterday, you’re partnering. If you’re planning for the future, building becomes more attractive.

Nature of Expertise Needed

What kind of AI expertise do you require?

Technical AI development: Highly specialised, scarce in market, takes years to build. Often requires buying or partnering for advanced capabilities.

AI tool proficiency: More broadly learnable. Building across workforce often makes sense.

AI strategy and governance: Mix of technical and business knowledge. May require buying or partnering initially, with building over time.

Change management for AI: Builds on general change skills. Often buildable internally with AI-specific additions.

Match approach to expertise type.

Scale of Need

How much expertise do you need?

Deep expertise for few: Consider buying specialists or partnering for specific capabilities.

Broad capability for many: Building workforce capability usually makes most sense.

Temporary intensive need: Partnering provides flexibility.

Ongoing moderate need: Building provides sustainability.

Scale affects which approach is economical.

Existing Talent

What’s your starting point?

Strong learning culture, adaptable workforce: Building leverages existing strengths.

Technical talent already present: Building on existing base may be efficient.

Weak learning capability, change-resistant culture: Building is harder; other approaches may be needed initially.

No relevant expertise to build from: May need to buy or partner to establish a base.

Your starting point shapes what’s feasible.

Budget and Resources

What can you invest?

Limited budget, time to develop: Building often most cost-effective.

Budget available, timeline pressure: Buying or partnering trades money for speed.

Flexible budget, ongoing need: Multiple approaches in combination.

Resource availability constrains options.

Organisational Context

What’s the broader context?

Culture of internal development: Building aligns with values and expectations.

History of successful external partnerships: Partnering has established pathways.

Retention challenges: Building may lose value if people leave. External approaches may be safer.

Strong employer brand: May make buying more feasible.

Organisational factors shape what works.

A Blended Approach

Most organisations benefit from combining approaches:

Build for Breadth

Develop AI capability broadly across the workforce:

  • AI literacy for all knowledge workers
  • Tool proficiency for relevant roles
  • Change capability for managers
  • Basic AI judgment organisation-wide

Building provides sustainable, cost-effective breadth.

Buy for Critical Roles

Hire for positions requiring deep expertise:

  • AI leadership roles
  • Technical AI specialists
  • Strategic AI positions
  • Hard-to-develop specialisations

Buying provides immediate access to critical capability.

Partner for Speed and Specialisation

Engage partners for specific needs:

  • Launching AI initiatives faster
  • Accessing specialised expertise temporarily
  • Benchmarking and external perspective
  • Augmenting capacity during intensive periods

Partnering provides flexibility and speed.

Capability Categories

Consider each AI capability category separately:

AI Technical Development

Building machine learning models, developing AI applications.

Typical approach: Buy or partner unless you’re a technology company. Building takes years and may not be core to your mission.

AI Strategic Planning

Setting AI direction, making investment decisions.

Typical approach: Build with executive development, supplemented by partner input for external perspective.

AI Governance and Ethics

Managing AI risk, ensuring responsible use.

Typical approach: Build, as this requires deep organisational context. Partner for initial framework development.

AI Tool Adoption and Use

Using AI tools effectively across the organisation.

Typical approach: Build as primary, partnered training as accelerator.

AI Change Management

Driving organisational AI transformation.

Typical approach: Build on existing change capability, partner for AI-specific expertise.

Different capability types warrant different approaches.

Implementation Considerations

If building:

  • Invest adequately in L&D programmes
  • Allow time for development
  • Create application opportunities
  • Build learning culture

If buying:

  • Offer competitive compensation
  • Ensure cultural fit
  • Plan for integration
  • Protect against retention risk

If partnering:

  • Choose partners wisely
  • Ensure knowledge transfer
  • Manage dependency
  • Define clear outcomes

AI consultants Melbourne can help accelerate capability building while transferring knowledge to internal teams—combining the speed of partnership with the sustainability of building.

Decision Framework

A practical approach to decision-making:

  1. Identify capability needs: What specific AI expertise do you need?

  2. Assess urgency: How quickly must capability be in place?

  3. Evaluate internal starting point: What do you have to build from?

  4. Consider sustainability: Is this a long-term or temporary need?

  5. Resource reality: What can you actually invest?

  6. Match approach to need: Select build, buy, or partner for each capability category.

  7. Plan the blend: Design how approaches work together.

  8. Monitor and adjust: As conditions change, adjust the mix.

The Long View

Over time, most organisations should shift toward more building:

  • External expertise is expensive to maintain indefinitely
  • Internal capability creates sustainable advantage
  • Dependency on external providers is risky
  • Building develops organisational learning muscle

Partner and buy to start and accelerate. Build for the long term.

The organisations that develop strong internal AI capability—combined with strategic external relationships—will navigate AI transformation most successfully.

Plan your approach thoughtfully. The right mix of build, buy, and partner isn’t obvious, but it’s worth getting right.