A new Cornell University study that tracked 3,000 European companies found that when it comes to selecting AI software, off-the-shelf is the way to go.
The study, headed by Cornell economics professor Chris Forman, found that firms often choose off-the-shelf AI software that can be modified to meet their needs.
The study focused on companies’ decisions to adopt AI tools and applications and whether those decisions led to purchasing ready-made software, developing their own, or adopting a hybrid strategy.
The results showed the following . . .
- 58% reported using ready-made software.
- 38% hired an external consultant.
- 24% used modified commercial software.
- 20% used software developed in-house; and 20% modified open-source technology for their firm’s needs. Some firms deployed the technology in multiple ways.
Specification Is A Key
Here are three additional big takeaways from the report:
1) The human element is still very much needed.
The study showed that companies in specific business sectors—think science, retail trade, finance, real estate, and manufacturing—are snapping up ready-made technology that can be tailored to the firm’s specific needs. “While AI may seem to be threatening the human workforce, these findings indicate that workers with AI-related skills will still be needed,” the study noted.
“Ready-made software is important,” Forman said, “but for the vast majority of firms, it does not appear to be a substitute for in-house software, which suggests that it’s not, at least in the short run, going to eliminate the need for AI-related skills.”
2) Common AI software uses
According to the study, companies routinely use AI software for a handful of tasks, including fraud or risk detection, process or equipment optimization, and process automation in warehouses or robotics.
3) Industry-specific
AI software usage is also highly dependent on the company’s business sector.
“The financial and scientific sectors – and to a lesser extent IT – preferred developing and customizing their own software while agriculture, construction, and human health preferred ready-made solutions,” the report noted.
“Yet in the vast majority of industries, firms are doing both readymade and in-house development, and I think it’s an interesting question for future work to understand why that’s the case,” Forman said.

Brian O’Connell, a former Wall Street bond trader and best-selling author, is a prominent figure in the finance industry. With a substantial background as an ex-Wall Street trader, he has authored two best-selling books: ‘The 401k Millionaire’ and ‘CNBC’s Creating Wealth’, demonstrating his profound knowledge of finance and investing.
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