How to Choose the Right AI Solution for Your Business

The AI Solution Spectrum

Not every business needs a custom AI system. And not every business can get by with ChatGPT and a plugin. The key is matching your requirements to the right level of solution.

Let's map out the spectrum:

Level 1: Off-the-Shelf AI Tools

Examples: ChatGPT, Claude, Jasper, Copy.ai, Grammarly

Best for:

• Content creation assistance
• Research and summarization
• Code explanation and debugging
• Ad-hoc productivity boosts

Limitations:

• No access to your specific business data
• Generic responses not tailored to your context
• Manual copy-paste workflows
• No integration with your systems

Typical cost: $20-100/month per user

Level 2: AI-Enhanced SaaS

Examples: Intercom Fin, Zendesk AI, HubSpot AI, Notion AI

Best for:

• Businesses already using these platforms
• Standard use cases (support, sales, documentation)
• Quick deployment without technical resources
• Predictable per-seat pricing

Limitations:

• Limited customization
• Vendor lock-in
• Data stays in their ecosystem
• May not fit your specific workflow

Typical cost: $50-300/month per seat, often as add-ons

Level 3: Low-Code AI Platforms

Examples: Voiceflow, Botpress, Landbot, ManyChat

Best for:

• Chatbots with defined conversation flows
• Marketing automation with AI elements
• Teams with some technical capability
• Rapid prototyping and iteration

Limitations:

• Still requires design and maintenance
• Complexity ceiling for advanced use cases
• Integration depth varies
• Quality depends on your prompt engineering

Typical cost: $100-500/month based on usage

Level 4: Custom AI Agents

Examples: Purpose-built systems using OpenAI, Anthropic, or open-source models

Best for:

• Complex workflows requiring deep integration
• Proprietary data and knowledge bases (RAG)
• Specific domain requirements
• Maximum control and customization
• Competitive differentiation through AI

Limitations:

• Higher upfront investment
• Requires technical expertise (or a partner)
• Ongoing maintenance responsibility
• Longer time to deployment

Typical cost: $10,000-100,000+ development, plus infrastructure

The Decision Framework

Answer these five questions to identify your appropriate level:

1. How specific is your knowledge requirement?

Generic knowledge: Levels 1-2 work fine Industry-specific: Level 3 or 4 Company-specific: Level 4 required

If users need to access your product catalog, pricing, policies, or customer data, you need a solution that can integrate with your systems.

2. What's your integration complexity?

Count the systems your AI needs to interact with:

• 0-1 systems: Any level works
• 2-3 systems: Level 3+ recommended
• 4+ systems: Level 4 typically required

Each integration point adds complexity. Custom solutions handle this better than platforms with pre-built connectors.

3. What's your conversation complexity?

Simple Q&A: Levels 1-3 Multi-turn with context: Levels 3-4 Complex transactions with business logic: Level 4

If users need to complete multi-step processes—booking appointments, modifying orders, resolving issues—you need deeper integration.

4. What's your scale?

Under 100 conversations/day: Any level works 100-1,000 conversations/day: Level 3-4 cost-effective 1,000+ conversations/day: Level 4 economics improve significantly

At scale, the per-conversation cost of custom solutions becomes compelling vs. per-seat SaaS pricing.

5. What's your competitive context?

AI as commodity: Levels 1-2 fine AI as differentiator: Level 4 recommended

If your competitors all use the same Intercom AI, you're not creating competitive advantage. Custom solutions can embody your unique approach.

Build vs. Buy: The Real Trade-offs

Buy (Levels 1-3)

Advantages:

• Faster time to deployment
• Lower upfront investment
• Vendor handles infrastructure
• Regular updates and improvements
• Easier to budget (predictable costs)

Disadvantages:

• Less customization
• Vendor dependency
• May outgrow capabilities
• Data handling concerns
• Feature roadmap you don't control

Build (Level 4)

Advantages:

• Full customization
• Deep system integration
• Own your data and model training
• No per-seat licensing
• Competitive differentiation

Disadvantages:

• Higher upfront investment
• Requires technical resources
• Maintenance responsibility
• Longer implementation timeline
• Need to stay current with AI advances

The Hybrid Approach

Many businesses benefit from combining levels:

1. Start with Level 1-2: Validate use case and user acceptance
2. Prototype with Level 3: Test specific workflows
3. Build Level 4 for high-value cases: Invest where it creates real advantage

You might use ChatGPT for internal research (Level 1), Intercom AI for tier-1 support (Level 2), and a custom RAG agent for technical product questions (Level 4).

Evaluating Custom AI Partners

If you're going the Level 4 route, here's what to look for in a development partner:

Technical competence:

• Experience with relevant AI models (OpenAI, Anthropic, open-source)
• Understanding of RAG architectures
• Track record with similar integrations
• Security and compliance awareness

Business understanding:

• Takes time to understand your use case
• Asks about success metrics, not just features
• Proposes appropriate (not over-engineered) solutions
• Clear about trade-offs and limitations

Ongoing relationship:

• Transparent about maintenance requirements
• Offers monitoring and support options
• Willing to start small and expand
• Knowledge transfer to your team

Red flags:

• Promises "AI will handle everything"
• Can't explain their approach in simple terms
• Ignores your existing technology stack
• No discussion of failure modes or edge cases

Making the Call

Here's a simplified decision tree:

1. Do you need AI to access your specific data?

   • No → Start with Level 1-2
   • Yes → Continue

2. Do you have 4+ systems to integrate?

   • No → Level 3 might work
   • Yes → Level 4 likely required

3. Is AI a core differentiator or competitive necessity?

   • No → Level 3 may be sufficient
   • Yes → Level 4 for maximum advantage

4. Do you have budget for custom development?

   • No → Start with Level 2-3, plan upgrade path
   • Yes → Evaluate Level 4 partners

The right answer depends on your specific context. But understanding where you fall on this spectrum helps you avoid both over-engineering and under-investing.

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Not sure which level fits your needs? Let's figure it out together.