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Strategy··Matt McCloskey

Should you be running your own AI?

Probably not. If your business uses a bit of AI today, running your own will cost you more than it saves. The bigger win is getting the tools you already pay for working properly.

What you may have heard

The story goes like this. The well-known AI tools are expensive. There are free AI models you can download and run on your own computer, or on computing power you rent. Do that and you pay a tenth of the price, and your data never leaves the building.

Each part of that is true for somebody. Free models exist and some are very good. Companies with large AI bills do save money this way. The catch is in who that somebody is.

Why it does not apply to most small businesses

There is not much to save. A team of ten on a business AI plan pays roughly £150 to £200 a month in total. A machine capable of running a decent model costs £3,000 or more before anyone has set it up. The big savings belong to companies spending thousands a month, usually software teams with AI writing code all day.

Someone has to look after it. Your own AI needs installing, updating, backing up and fixing when it stops. That is either your time or a bill from someone else, and it rarely appears in the headline sums.

The results are not as good. Models that fit on office hardware are a step behind the leading tools on anything difficult. Your team will notice, and quietly go back to what they were using before.

It solves the wrong problem. The cost of AI is rarely what holds a small business back. More often the tools are sitting there and nobody has worked out where they fit.

The few cases where it does

Running your own AI can be the right call if one of these describes you:

  • You handle information that must not leave your premises, by contract or by regulation
  • You work somewhere with no reliable internet
  • You process very large volumes of documents or messages, every day
  • Your AI bill is already in the thousands each month

If none of those fit, you can stop thinking about it.

Where your time and money are better spent

The businesses getting value from AI are mostly using ordinary tools well. Three things make the difference:

  1. Use what you already pay for. Microsoft 365 and Google Workspace both include AI that works with your own email and files. Many businesses have it and have never switched it on.
  2. Pick two or three jobs and do them properly. Quotes, meeting notes, customer replies, chasing invoices. Choose the tasks that eat the most hours and build a repeatable way of doing each one with AI.
  3. Connect it to how you work. AI in a separate browser tab is a novelty. AI that can see your documents, calendar and customer records saves real time.

None of this needs new hardware. It needs someone to look at how the business runs and match the tools to the work, which is what an Aimplify AI Health Check does.