Aug23
In the halcyon days of enterprise software, you know, way back in 2022, the procurement dance was familiar: identify a problem, find a vendor with a solution, sign the contract, and implement. Tidy. Predictable. Simple.
Then AI crashed the party like an uninvited guest with a confetti cannon.
Today, boardrooms worldwide are humming with the same anxious question: "What's our AI strategy?" But unlike the ERP implementations of yesteryear, no single vendor is waving their hand saying, "We've got you covered!" Well, actually, plenty are saying exactly that—they're just not telling the truth.
Remember when you could buy a comprehensive CRM system and call it a day? AI doesn't play by those rules. The current landscape is fewer department stores and more farmers' markets, specialized vendors everywhere you look, each with unique ingredients.
You've got foundation model providers, prompt engineering tools, synthetic data generators, model fine-tuning platforms, AI governance solutions, and enough specialized AI applications to fill a phone book (for those who remember what those were).
But here's the kicker: none of them, absolutely none, represent a complete AI strategy.
"Just implement our GenAI platform and you'll be transformed!" If only it were that simple. The uncomfortable truth is that AI transformation isn't a product—it's a capability – and capabilities can't be installed like software.
Think about it: would you buy a product called "Internet Strategy" in 1998? Or "Mobile Strategy" in 2010? Of course not. Those transformations required new ways of thinking, working, and organizing—not just new technology.
The same goes for AI. Companies rushing to purchase a single AI solution buy ingredients without a recipe and instruments without musicians.
Instead, a new model focused on expertise rather than products is emerging. Forward-thinking organizations are building or partnering with teams who can:
These teams blend technical expertise with domain knowledge, balancing the "can we" with the "should we" questions that AI inevitably raises.
The product-first approach to AI suffers from a classic case of solution-in-search-of-a-problem syndrome. When a vendor builds a generative AI chatbot, suddenly, every business challenge looks like it needs a chatbot.
But what if you really need intelligent document processing, predictive modeling, or something no one has named yet?
That's why the procurement shift matters so much. It's not about buying AI—it's about continuously building the capability to identify where AI creates value for your specific context.
As we stand amidst the AI downpour, umbrella vendors promising complete coverage are bound to leave you soaked. Instead of seeking shelter in a single solution, wise leaders assemble teams of expert navigators who can chart a path through the storm—and perhaps even teach you to dance in the rain.
Ultimately, your AI strategy won't be defined by what you buy but by who helps you build it.
And that might be the most refreshing business transformation of all.
By Robert Bye
Keywords: Agentic AI, AI, IT Strategy