Off-the-shelf AI vs. Custom AI: How to choose the right fit for your business

As AI adoption accelerates across industries, organisations face an important decision: how should they incorporate off-the-shelf AI and custom AI into their business strategy? This article guides readers through the characteristics of the two, using real-world considerations such as cost, implementation speed, and data privacy. 

Copilot is an off-the-shelf AI product integrated with the Microsoft software suite - From our webinar "How to leverage Microsoft 365 Copilot to drive value in an admin-heavy world."

Off-the-shelf AI capabilities 

Off-the-shelf AI refers to commercially available tools developed by third-party vendors to solve common business problems. These solutions are typically pre-trained, and have access to easy deployment and technical support if done with the right partner. 

However, these tools may offer limited flexibility, and their generic features might not address specialised business needs. Additionally, data processed through vendor platforms could raise concerns about privacy and regulatory compliance. 

Learn more about how we can enable AI in your organisation here.

What is Microsoft 365 Copilot? 

To shine a light on the possibilities of off-the-shelf AI, we will discuss one of the most popular AI products, Microsoft 365 Copilot, which integrates itself across the Microsoft suite – software used by most businesses – in programs such as Word, Outlook, Teams, PowerPoint, Excel, and SharePoint. This integration means that it can perform a multitude of tasks, from blog writing to presentation and email creation, all while learning from your data to create outputs personalised to you.  

Additionally, because it is backed by Microsoft, users are sure of a system that adheres to enterprise-grade security protocols, ensuring data protection and compliance. However, it must be noted that organisations are responsible for data management, so it is important to manage things like file access before rolling out Copilot, to avoid inadvertent access by Copilot for a user that should not have access to certain documents. 

One example of a way that many Copilot users take advantage of the software is through its Teams integration. Rather than facing the choice between attending a meeting or not, Copilot can attend on a person’s behalf. It can then transcribe the meeting and create a summary of the content, with the resulting documents being completely searchable so people can discover if they have been mentioned and have anything they need to action.

Agentic AI possibilities 

Is 2025 set to be the year of the AI agent? - From our webinar "Custom AI for business: How to start and where to invest."

Most of the AI that has taken the world by storm is generative AI, but a new frontier has recently emerged in the form of agentic AI, which has seen significant advancements since late last year. AI agents are small software systems that autonomously access data, make decisions, and achieve specific goals. Unlike generative AI, agentic AI can be trained to specialise in roles and tasks within a business. These agents are designed to be experts and can work autonomously or collaboratively on projects. By 2028, Gartner predicts that 33% of software applications will include agentic AI, a significant increase from less than 1% last year. 

AI agents are incredibly flexible and can be trained to handle specific business processes and integrate with various data sources like HR systems, finance systems, and ERPs. Some examples include a product maintenance agent in SharePoint and a modern work licensing agent trained to assist the sales team with Microsoft 365 licensing information. Additionally, agents can be deployed across different platforms, including Microsoft 365, Dynamics, Power Platform, and even external applications like Facebook Messenger. 

There are different platforms that can be used for building agents, with one of them being Copilot Studio, meaning that agentic AI can be used within the same programs as generative AI. This means that organisations can build their own bespoke agents within the framework of off-the-shelf AI solutions. However, while you can make great use of AI Agents with certain off-the-shelf solutions, when paired with custom-built solutions you can take things to the next level. 

Custom AI: Tailored intelligence for complex needs 

Custom AI involves building proprietary models or fine-tuning existing ones on a company’s own data. These solutions provide full control over performance and compliance but require significant investment in time, talent, and infrastructure. 

This approach is ideal for businesses with unique use cases or strict regulatory requirements, but it comes with higher costs and greater complexity. For example, if an organisation wishes to build an AI agent that deals with customer issues, they may decide that their situation requires the adoption of custom AI to adequately address the needs of the customers. This may be because the agent needs access to a variety of systems and databases, ranging from emails and files to enterprise resource planning and customer relationship management software, all while handling data in a legally compliant manner. 

Discover our Generative and Custom AI solutions here

How to identify which AI solution you need 

To select the right AI approach, organisations should evaluate several core factors: 

• Business needs: Are your challenges generic or unique? If the former, off-the-shelf may be sufficient, but if you’re unsure, our specialists can help you figure out your needs and which solution best applies. 

• Budget: What level of investment can you make? Off-the-shelf options are generally more affordable but require ongoing subscriptions. 

• Time to market: Do you need results quickly, or can you afford a longer development cycle? 

• Data sensitivity: Are you handling regulated or highly confidential data that requires internal control? 

• Scalability: Will your AI needs grow over time, requiring a flexible and extensible solution? 

By addressing these questions, businesses can create an AI adoption strategy aligned with their operational goals and risk tolerance. 

Adoption best practices 

Regardless of the chosen path, successful AI adoption requires thoughtful planning: 

• Leadership buy-in: Executive support ensures alignment across the organisation. 

• Plan: Establish the tasks related to proof of concept (POC), pilot, and production. 

• Cross-functional teams: Combine domain knowledge with technical expertise. 

• Change management: Provide training and support to drive user adoption. 

• Measurement: Use dashboards or analytics tools to track ROI and usage metrics.
  

Conclusion 

Choosing between off-the-shelf and custom AI is not a one-size-fits-all decision; two very similar companies may have very valid reasons to go in different directions. Each option offers distinct benefits depending on your business context. Off-the-shelf AI provides speed and simplicity, while custom AI unlocks deep strategic value. By understanding the trade-offs and aligning AI initiatives with business priorities, organisations can unlock meaningful value and remain competitive in a changing world. 

At FluidOne, our vision is to lead the way in secure AI adoption, combining our innovative Connected Cloud Solutions with unmatched expertise and service, empowering businesses to thrive confidently in the AI era. As a Microsoft Cloud Solution Provider we are able help you with all you Microsoft needs, including Microsoft 365 Copilot licence management, readiness assessments, implementation, and guidance. For those of you interested in custom AI, we have our own in-house Data & AI team who are able to collaborate with you on your bespoke AI projects. Contact us to find out more and get started on your AI journey.