Choose the work

Build, buy or partner: how a large company sources its AI

A large company can buy AI software ready to use, build AI with its own staff, or have an outside firm build or adapt it, and many use more than one route. In 2024, 67.23% of large EU enterprises using AI bought commercial software ready to use, 34.05% developed AI in-house, and 45.76% had it developed or modified by external providers, according to Eurostat. This page gives the figures for the EU, the US, Canada and the UK, the contract terms a US government memo asks buyers to secure, how NIST treats vendor risk, and the EU rule under which a buyer can become the provider of a high-risk system.

Published October 26, 2026. Editorial.

Key takeaways

  • In 2024, 67.23% of large EU enterprises using AI bought ready-to-use commercial software, 34.05% built AI in-house and 45.76% used external providers, and many did more than one.
  • Among US firms with 250 or more employees that used AI, 10.3% used vendors or consultants to install or integrate it, and 6.8% hired staff trained in AI.
  • OMB memo M-25-22 binds only US federal agencies. In Reveneau's view, its list of contract terms (knowledge transfer, data and model portability, clear licensing, pricing transparency) works as a checklist for any buyer.
  • Under EU AI Act Article 25, a company that puts its name on a high-risk AI system, makes a substantial modification to it or changes its purpose so it becomes high-risk is treated as its provider.
  • Reveneau's view: whichever route you take, keep ownership of the tests and the data, so the company can change vendors without starting again.

In 2024, 67.23% of large EU enterprises that used artificial intelligence (AI) bought commercial software that was ready to use [1]. In the same year, 34.05% developed AI with their own staff, and 45.76% had AI developed or modified by external providers [1]. Large here means 250 or more employees. Enterprises could give more than one answer, and the large-enterprise shares add up to 219.57%, so many use more than one route.

This page sets out the three routes (buy, build, partner) with the official figures for each, the contract terms that protect a buyer, how to manage a vendor's risk, and one EU rule that can turn a buyer into a provider with a provider's duties. It is part of the guide on enterprise AI adoption.

How companies source AI

Eurostat, the statistics office of the European Union (EU), asks enterprises that use AI how they obtained it. The newest year with this question is 2024 [1].

How the AI was obtained All EU enterprises using AI, 2024 Large EU enterprises using AI, 2024
Commercial software or systems, ready to use 57.92% 67.23%
Commercial software modified by own employees 25.92% 41.73%
Open-source software modified by own employees 26.98% 30.8%
Developed by own employees 21.78% 34.05%
Developed or modified by external providers 28.6% 45.76%

Open-source software is software whose code is published for anyone to use and change under a licence. The shares add up to more than 100% because firms could name several routes. Large firms report every route more often than the average for all enterprises. The external-provider share for large EU firms was 52.57% in 2021 [1], so it fell by 6.81 points to 2024.

In the United States (US), the Census Bureau's AI supplement, collected 17 November 2025 to 8 February 2026, gives lower figures. Among firms with 250 or more employees that used AI, 10.3% "Used vendors or consulting services to install or integrate AI", against 3.8% of all firms that used AI [2]. Among the same large firms, 6.8% hired staff trained in AI [2]. A note on the name: because of Executive Order 14434, signed on 29 September 2026, the Census Bureau now calls AI "Super Intelligence" or "SI" in its files [3][4]. Its questions asked about "Artificial Intelligence (AI)" until the collection that began on 19 October 2026, and this supplement closed on 8 February 2026, so this page says AI [4].

In Canada, among businesses with 100 or more employees that used AI, "32.8% hired employees with AI-related skills and 30.2% used external consultants or vendors" [5]. In the United Kingdom (UK), the Office for National Statistics (ONS) reports that "Using free-to-use software and purchase of external software are the most common ways industries adopt AI" [6].

What each route means

The table below is Reveneau's summary of the three routes. It is a view, built from the work each route involves, and the figures above say how often each is used.

Route What it is What the company owns Main risk
Buy Software with AI built in, used as the vendor supplies it Its data and its settings The tool does not fit the work, and the company depends on one vendor's terms and prices
Build The company's own staff develop or adapt the system The code, the tests and the data Hiring and keeping staff with AI skills
Partner An outside firm builds or adapts the system for the company Whatever the contract assigns Knowledge stays with the partner unless the contract transfers it

In Reveneau's view, buying fits common tasks that many companies share, such as writing help inside office software. Building and partnering fit work that depends on the company's own data, processes and older systems. Most of the first uses on the page choosing your first AI use cases can start as a purchase and move to a build when the company needs more control. For the general case outside AI, see custom software: build or buy.

What to put in the contract

A US government memo gives a public list of buyer protections for AI. The Office of Management and Budget (OMB) issued memo M-25-22, "Driving Efficient Acquisition of Artificial Intelligence in Government", on 3 April 2025 [7]. It binds only US executive agencies, and it does not apply to AI acquired as a component of a national security system [7]. Reveneau's view is that its terms work as a checklist for any large buyer.

The memo tells agencies that "they must pay careful attention to vendor sourcing, data portability, and long-term interoperability" [7]. Data portability means the buyer can take its data out in a usable form. Interoperability means the system can work with other systems. Both reduce lock-in: depending on one vendor so much that leaving costs more than staying.

M-25-22 names the contract terms that reduce lock-in: "requirements regarding knowledge transfer, clear data and model portability practices, clear licensing terms, and pricing transparency" [7]. It encourages agencies to use performance-based techniques, which set out the results the system must achieve and the measures used to check them before and after the contract is signed [7]. It also tells each agency to "Convene a cross-functional team" for AI purchases, and its examples of team members include experts in buying, IT, cybersecurity, privacy, budgeting, data and legal matters [7].

Contract term What it protects Source
Knowledge transfer Staff can run and change the system after the vendor leaves OMB M-25-22 [7]
Data and model portability The company can move its data, and any model trained for it, to another vendor OMB M-25-22 [7]
Clear licensing terms The company knows what it may use, change and keep OMB M-25-22 [7]
Pricing transparency The company can see how prices are set and how they change OMB M-25-22 [7]
Performance-based terms The contract names the results the system must reach and how they are measured OMB M-25-22 [7]

Status as of 26 October 2026: M-25-22 replaced memo M-24-18 and applies to contracts from solicitations issued 180 days or more after 3 April 2025 [7]. OMB's list of memoranda still shows M-25-22, with no later memo withdrawing it, through M-27-01 of 23 October 2026 [8]. A later memo, M-26-04 of 11 December 2025, adds "Unbiased AI Principles" for purchases of large language models [8].

Managing a vendor's risk

The US National Institute of Standards and Technology (NIST) AI Risk Management Framework treats vendors as part of the AI system's risk. It says "Third-party entities include providers, developers, vendors, and evaluators of data, algorithms, models, and/or systems and related services" [9]. Item MANAGE 3.1 asks that AI risks from third parties are "regularly monitored" [9]. Item GOVERN 6.1 asks for policies on AI risks that come from third parties, including the risk of infringing a third party's intellectual property [9].

In Reveneau's view, a large company can act on this in three ways. Keep a list of every AI vendor and what it supplies. Test each vendor's system on the company's own cases before release and after each vendor update. Read the vendor's terms on what it does with the company's data; the page on model provider terms and data use compares the main providers.

Public help with the choice is one policy idea. A report by the OECD (the Organisation for Economic Co-operation and Development), Boston Consulting Group and INSEAD suggests that "Governments could also provide guidelines or a framework to help small and medium-sized enterprises navigate the vendor selection process" [10].

When a buyer becomes a provider under the EU AI Act

The EU AI Act puts most duties for a high-risk system on its provider, the firm that develops it and puts it on the market. Article 25 says: "Any distributor, importer, deployer or other third-party shall be considered to be a provider of a high-risk AI system for the purposes of this Regulation and shall be subject to the obligations of the provider under Article 16" in three cases [11]. The deployer, the company using the system, becomes the provider if it puts its own name or trademark on a high-risk system, makes what the Act calls a "substantial modification" to it, or changes the purpose of an AI system so that it becomes high-risk [11].

This matters when a company buys a system and then adapts it, or asks a partner to adapt it. Regulation (EU) 2026/1744 rewrote Article 25(2): the first provider must cooperate with the new one, and that includes informing it about "known limitations and failure modes" [12]. In Reveneau's view, that duty belongs in the contract too.

A deployer that stays a deployer still has duties. Under Article 26, it must take measures to use a high-risk system according to the provider's instructions for use, and it must keep the logs the system creates, where they are under its control, "of at least six months" [11]. For Annex III high-risk systems these duties apply from 2 December 2027 [12]. The guide on the EU AI Act and your product covers the provider side.

Reveneau's view on the choice

Reveneau's view is that, whichever route it takes, a large company should own three things: the tests that define a good answer, the data the system uses, and the right to move both to another vendor. An eval suite is that set of tests: written, repeatable checks of the system's answers against cases the company chooses. A company that owns its eval suite can run a new vendor's system against the same cases before it switches. The guide on why AI evals matter explains how.

For choosing an outside firm, see an AI development partner for a large company. For the model where engineers work inside the customer's own teams and systems, see forward deployed engineering. For work that touches old systems, see connecting AI to older systems.

Reveneau is an AI software development consultancy with offices in San Francisco and Vancouver. Reveneau says AI writes all of its code and every change must pass an eval suite written from the specification. Reveneau says Jev, TypeSafe AI's decision model, grades that suite, and that the suite runs ten times faster than it did with its previous grader. Reveneau says it uses AI instead of hiring more engineers and puts that saving into clients' prices, and that it takes responsibility for the whole project through production and after release. To talk about a project, see Reveneau's services or contact Reveneau.

Common questions

How do large European companies get their AI systems?

Buying AI ready to use is the most common route for large European companies, and many also build or use outside providers. In 2024, 67.23% of EU enterprises with 250 or more employees that used AI bought commercial software ready to use, 34.05% developed AI in-house and 45.76% had it developed or modified by external providers, according to Eurostat. Firms could give more than one answer.

How many large US firms use outside vendors to install AI?

Among US firms with 250 or more employees that used AI, 10.3% used vendors or consulting services to install or integrate it, in the Census Bureau's AI supplement collected 17 November 2025 to 8 February 2026. Across all firms that used AI, the share was 3.8%. Among the same large firms, 6.8% hired staff trained in AI.

Do Canadian companies hire AI staff or use consultants?

Large Canadian companies do both in similar shares. Among businesses with 100 or more employees that used AI, 32.8% hired employees with AI-related skills and 30.2% used external consultants or vendors, according to Statistics Canada's analysis of the second quarter of 2026. The survey ran from 1 April to 6 May 2026.

What contract terms reduce lock-in to an AI vendor?

Knowledge transfer, clear data and model portability practices, clear licensing terms and pricing transparency reduce lock-in to an AI vendor. Those are the terms named in OMB memo M-25-22 of 3 April 2025, which also tells US agencies to watch vendor sourcing, data portability and long-term interoperability. The memo binds only federal agencies. In Reveneau's view, its terms also work as a checklist for any buyer.

Does OMB memo M-25-22 apply to private companies?

OMB memo M-25-22 does not apply to private companies. It binds US executive agencies buying AI, and it does not apply to AI acquired as a component of a national security system. A private company can still use its list of contract terms, such as knowledge transfer and data portability, as a checklist when it buys AI.

Is OMB memo M-25-22 still in effect in October 2026?

OMB memo M-25-22 was still listed on OMB's memoranda page on 26 October 2026, with no later memo withdrawing it, through memo M-27-01 of 23 October 2026. It was issued on 3 April 2025 and replaced M-24-18. Memo M-26-04 of 11 December 2025 adds Unbiased AI Principles for purchases of large language models.

When does a company become the provider of a high-risk AI system under the EU AI Act?

Under Article 25 of the EU AI Act, a deployer becomes the provider of a high-risk AI system if it puts its name or trademark on the system, makes a substantial modification to it, or changes an AI system's purpose so that it becomes high-risk. It then takes on the provider's duties under Article 16. This matters when a company adapts a system it bought.

How long must a deployer keep the logs of a high-risk AI system?

A deployer must keep the logs a high-risk AI system creates, where they are under its control, for a period suited to the system's purpose and of at least six months. The rule is in Article 26(6) of the EU AI Act. For Annex III high-risk systems, the deployer duties apply from 2 December 2027, under Regulation (EU) 2026/1744.

What does the NIST AI Risk Management Framework say about AI vendors?

The NIST AI Risk Management Framework treats vendors of data, models and systems as third parties whose risks the company must manage. Item MANAGE 3.1 asks that third-party AI risks are regularly monitored, and item GOVERN 6.1 asks for policies on third-party risks, including infringement of others' intellectual property. The framework is voluntary.

Has the share of large EU firms using outside AI providers changed?

The share of large EU firms using outside AI providers fell from 52.57% in 2021 to 45.76% in 2024, among enterprises with 250 or more employees that used AI, according to Eurostat's database. In 2024, 34.05% of the same firms developed AI with their own staff. 2024 is the newest year with this question.

Should a large company build or buy its AI?

Reveneau's view is that a large company should buy AI for common tasks and build or partner for work tied to its own data and systems. Whichever route it takes, it should own the tests and the data, so it can change vendors. In 2024, 67.23% of large EU firms using AI bought ready-made software, and 34.05% built in-house.

References

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