Ep4: Build Or Buy? The AI Agents Evaluation Guide

Eric Marquette

Alright, so let’s dive into what’s often one of the first big questions businesses face when it comes to AI agents – should you build these tools in-house or should you team up with an agency, like Powered by, to develop them? Now, on the surface, it might seem like a straightforward choice, but it’s actually, well, a little more nuanced than you’d think.

Eric Marquette

When we talk about building AI agents in-house, you’re committing to assembling the right team with the right expertise. And and that, as you can imagine, demands a heavy investment – not just financially, but in terms of time and effort too. You need data scientists, engineers, tools for machine learning, and that’s before you even start building or iterating. But partnering with an external agency, on the other hand, means you can leverage their experience, their frameworks, and frankly, their ability to deliver faster results. They’ve already climbed that learning curve.

Eric Marquette

Now, let’s talk resources, because this is where things really start to get interesting. Budget’s a big piece of the puzzle – you know, whether your business has the funds to hire specialized talent or invest in the infrastructure needed. But it’s not just money. It’s also about time. If you’re rushing to scale or trying to launch within months, can your internal team really absorb that pressure without stretching themselves too thin? Agencies can offer a shortcut, but you are, of course, factoring in the cost of their service fees.

Eric Marquette

Then there’s expertise – and by this, I mean both technical skills and industry know-how. If your team doesn’t already have deep AI experience, any attempt to build from scratch can turn into what I’d call a bit of a trial by fire. There’s a real risk of resource strain, and honestly? Skills gaps can stall your progress before you even get off the ground.

Eric Marquette

I wanna share an example here, because I think stories really help anchor these ideas. Take this small startup I read about – now, they decided to develop their own AI agent for customer service. Great ambition, right? But pretty quickly, they ran into roadblocks. The sheer time they spent training their team, plus unexpected technical hurdles, led to delays that impacted their ability to grow. And ultimately, they ended up reaching out to an agency to pick up where they left off. That’s time and money they couldn’t recoup, you know?

Eric Marquette

So, the choice isn’t just about ownership or control. It comes down to how well your current resources align with your business goals – and how much risk you can comfortably handle along the way.

Eric Marquette

Now, when you’re weighing whether to build or buy your AI agents, there are some core factors you really can’t afford to overlook. And and these go beyond the obvious stuff, like budget or timelines. We’re talking about things like your business’s growth potential, the strengths and gaps in your team’s skill sets, and how all of this aligns with the strategies driving your company forward.

Eric Marquette

Think about financial constraints. It’s not just about the number on a budget line, right? It’s the ongoing costs. Are you prepared for maintenance expenses down the road? And if your AI solution scales – as it should – can your infrastructure handle that? Or, if you choose to partner with an agency, are you accounting for the longevity and value they might bring over time?

Eric Marquette

Then, let’s talk expertise. The skills within your team make or break this decision. If you have a group that’s great with AI, fantastic – but if you don’t, you're taking a step into uncharted territory. Hiring new talent might sound like a solution, but how quickly can they ramp up? And and will that delay your project? Collaboration with an agency could make sense here because they’re ready to hit the ground running. Literally, no ramping needed.

Eric Marquette

And here’s where doing a SWOT analysis – strengths, weaknesses, opportunities, and threats – can really help you step back and get a, I’d say, clear picture on your position. For instance, strengths could be access to proprietary data that gives you an edge, but maybe a weakness is that your internal systems aren’t exactly designed for AI integration yet. An opportunity could be tapping into agency expertise to speed up development while you upgrade those systems. And a threat – well, disruption from competitors if you don’t act fast enough. See how that framework starts to map out your situation?

Eric Marquette

Now, let me give you an example that really makes this click. There’s this mid-sized retail company I read about recently. They partnered with an external agency to develop an AI-powered recommendation system. The agency brought in mature algorithms and tight implementation timelines. What happened next? Their customer engagement scores skyrocketed. Shoppers were buying more, spending longer on the website – it was a win-win. So for them, the partnership added value they wouldn’t have gotten on their own, at least not within the same timeframe.

Eric Marquette

The bottom line is, each decision here is highly situational. Your business case, your resources – they all shape the path you take. But by analyzing these factors carefully, you can set yourself up to make a choice that not only supports your immediate goals but also sustains your success in the long run.

Eric Marquette

Alright, so now that we’ve talked about decision-making frameworks and key factors, let’s shift gears and dive into some real-world examples that show how these strategies play out. You see, success stories – and even not-so-successful ones – can really help put all this into perspective.

Eric Marquette

Let’s start with a company that chose to build their AI solution in-house. Think of this as, like, a tech-savvy enterprise with an existing foundation in machine learning. They invested heavily in talent – data scientists, engineers, the works. Their goal was to create a chatbot capable of handling customer inquiries seamlessly. And you know what? After about a year of development and iteration, they saw a clear payoff – customer satisfaction metrics went up by 20%, and call resolution times dropped significantly. But here’s the thing – while the outcome was great, the road to get there wasn’t exactly smooth. They admitted it required a lot of trial and error, and the costs, well, they ballooned beyond what they’d initially planned.

Eric Marquette

Now, contrast that with a company that decided to partner with an external agency. This was a mid-sized logistics firm that didn’t have much AI expertise on their team. They brought in an agency to design and deploy a predictive analytics tool to optimize delivery routes. What happened? Within six months, they were reporting faster deliveries and reduced fuel costs. The agency handled the heavy lifting, and the firm got to focus on integrating the solution into their daily operations. A shorter timeline, fewer hiccups – but of course, they had to factor in the ongoing fees for using the agency’s services.

Eric Marquette

So what do we take from all this? Both paths have transformative potential, but the risks are where things can get tricky. Building in-house means you’re shouldering not only the financial aspects but also the operational risks. You might encounter delays, unexpected hiring challenges, or even misalignment between your AI goals and what your team can actually deliver. Agencies, on the other hand, minimize those risks by bringing in expertise and ready-made frameworks – but you’re relying on their timelines and expertise, meaning, well, some degree of control shifts out of your hands.

Eric Marquette

And this, I think, is why businesses need to view AI as more than just a tool. It’s a strategic lever that can redefine workflows, customer interactions, even new revenue streams. But, and this is key, having expert guidance – whether in-house or external – is what really unlocks that potential. It’s like enabling a shift in mindset from just solving a problem to building a competitive advantage.

Eric Marquette

So let’s talk about why partnering with a specialized agency, like Powered By, might make a lot of sense for businesses. Especially if you’re a small or medium-sized company, the challenges of building an AI solution in-house can feel, well, pretty overwhelming. I mean, not everyone has teams of engineers at their fingertips or the IT budgets to just, you know, dive right into the deep end of AI innovation.

Eric Marquette

And this is where agencies come in. They bring not just expertise and ready-to-go frameworks, but also, like, the ability to customize solutions that really fit your business. Instead of sinking a ton of time and money into building something from scratch – or choosing some one-size-fits-all vendor tool – you get something tailored. Something that works for you, right out of the gate.

Eric Marquette

Now, I’ve seen how transformative AI agents can be when they’re done right. For small businesses especially, they can dramatically reduce manual work, boost customer satisfaction, and open up growth in ways that, honestly, didn’t even seem possible before. Like imagine cutting repetitive tasks in half or having an AI agent that completely changes how your team interacts with customers – those kinds of shifts can really, I’d say, move the needle.

Eric Marquette

And if AI’s something you’re curious about, or even ready to explore for your own business, here’s my suggestion – reach out to Powered By. They offer a 30-minute free consultation with their solutions design team where you can dive deeper into what AI could do for you. No strings attached, just an opportunity to explore how their expertise can, maybe, spark new ideas or solve challenges you’re facing. It’s, honestly, a great starting point if you’re mapping out your next steps.

Eric Marquette

Alright, so that brings us to the end of today’s episode. I hope this guide has helped you feel more informed about the build versus buy decision – and maybe even inspired you to start thinking about AI in a different way. Whether you choose to build in-house, partner with an agency, or maybe some combination of the two, the key is remembering how powerful AI can be when it’s done right. And that’s all for today. Thanks for tuning in, and I’ll see you next time!