80%

of enterprise AI projects fail to deliver intended business value

RAND Corporation, 2025

vendor-led solutions succeed vs. internal builds

MIT NANDA Initiative
60%

of CIOs say tech debt has increased over 3 years

McKinsey
21/26

highest possible scores, Forrester Wave TMS Q3 2025

Forrester Wave

Enterprises should buy platform infrastructure and build only the capabilities that create competitive advantage. Most AI initiatives never reach production. The organizations that succeed separate the infrastructure they buy from the intelligence they build on top of it.

Research from RAND Corporation shows 80% of AI projects fail to deliver their intended business value. MIT found that vendor-led solutions succeed at roughly twice the rate of internal builds. The gap between a working demo and a production-grade system is where the majority of internal projects stall.


Why Internal builds fail at scale

Most enterprises that build content infrastructure internally underestimate what they are committing to. The initial investment is rarely the problem. It is the compounding cost of ownership that follows.


The hidden cost of building in-house

AI has made it deceptively simple to prototype content systems. Engineering teams connect to a large language model, build a working demo, and present something that looks production-ready. But operating that system across languages, markets, regulatory environments, and content types at enterprise scale is a fundamentally different challenge. The organizations that build everything themselves are not just taking on software. They are taking on every decision that software touches, for as long as it runs.

When you build, the bill comes later. Leadership teams do not budget for forever. Regulation shifts, the original architects leave, and the organization inherits systems without the context of why they were built that way. That debt is not just in the code. It is organizational. Unwinding build decisions requires leadership across multiple functions and a long runway that most teams do not have.

47%

47% of CIOs expecting to overspend in the next 18 months

McKinsey

20–40%

of total technology estate value estimated as technical debt by CIOs

McKinsey

Why enterprises keep rebuilding what already exists

The first mistake leaders make is believing their problem is unique and that nobody has faced the same challenge. In most cases, the problem has been well solved by existing platforms. Without a platform, every challenge looks like it requires a bespoke response. That creates unsustainable maintenance overhead and fragments quality, governance, and reporting across markets.

The second mistake is treating the build as a one-time investment. Internal builds carry ongoing costs for technical debt, support, uptime, and continuous development. Treating a build as a project rather than a permanent operational commitment always ends in frustration between technology leaders and the CFO, because the costs never come off the balance sheet.

80%

of AI projects fail to deliver intended business value — failure rate roughly double that of non-AI technology projects

RAND Corporation, 2025

What enterprises lose while maintaining infrastructure

Every engineering hour spent maintaining a homegrown system is an hour not spent on the work that differentiates the business. The opportunity cost is invisible on the balance sheet but visible in the speed at which competitors reach new markets, launch new content types, and respond to regulatory change. The question is not whether your team can build this. It is whether building it is the highest-value use of their time.

50%

more engineering time available for business-supporting work when organizations actively manage technical debt

McKinsey

Buy the infrastructure. Build what differentiates your business.

Enterprises should invest in engineered platform infrastructure and reserve internal development for the capabilities that create competitive advantage. The gap between a working AI demo and a production-grade system that handles governance, compliance, quality, and multi-market operations is where most internal projects fail.

AI has made it deceptively simple to prototype content systems. Engineering teams connect to a large language model, build a working demo, and present something that looks production-ready. But operating that system across languages, markets, regulatory environments, and content types at enterprise scale is a fundamentally different challenge. The organizations that try to build everything themselves are not just taking on software. They are taking on every decision that software touches, for as long as it runs.

A composable, API-first platform removes that complexity. It delivers governance, quality, security, and scale from day one. Teams focus on the work that drives business outcomes rather than maintaining infrastructure that has already been engineered and proven.

Phrase calls this Language Intelligence. It is the accumulated context, quality standards, and governance that make AI output enterprise-grade, and it compounds with every piece of content the system processes. That intelligence is not something a better model gives you for free. It is something you build, tune, and improve over years of use. It is not portable. And it is the asset that justifies the platform investment.

Key takeaways

  • Buy platform infrastructure. Build only what differentiates your business.
  • Language Intelligence is the accumulated context and governance that makes AI output enterprise-grade. It compounds over time.
  • The gap between a working demo and a production-grade system is where internal builds fail.
  • The cost is not the initial build. It is the years of maintaining systems that nobody fully understands.
  • Platforms enforce useful standardization. Without one, every problem looks like it requires a custom solution.
  • The teams that adopt a platform do not disappear. They are redeployed to the work that creates value.

Analyst validation

Phrase named a Leader in the Forrester Wave™

Phrase received the highest possible scores in 21 of 26 criteria in the Forrester Wave for Translation Management Systems, Q3 2025. Forrester noted that the success of Phrase’s strategy shows in its growth, retention, partnerships, and the trend for other vendors in this space to leverage its infrastructure.


21/26

Highest possible scores

99%

Workflow automation


Access the report →
Forrester Wave Translation Management Systems Q3 2025 — Phrase named a Leader

Building on an open ecosystem

Buy or Build is not a trade-off. Buying an engineered platform is what makes building viable. The platform handles the infrastructure. Your team builds on top of it.

Enterprises depend on interconnected systems. CMS, CRM, DAM, design tools, AI models, and product platforms all need to communicate. When they cannot, content, quality data, and operational insight get trapped in silos. Fragmentation makes it difficult to coordinate workflows or measure impact across functions.

Phrase acts as the connective layer for global content operations. It links the enterprise’s existing technology stack through open, partner-agnostic integrations. Marketing, product, and customer systems connect to a single Language Intelligence backbone. Data and content flow from creation to delivery, giving teams shared visibility and control.

As partners build Verified Solutions on Phrase, the ecosystem grows. Customers gain access to ready-to-use solutions they can plug into their workflows without building from scratch. Developers get a flexible, API-first foundation to extend and innovate without managing infrastructure.

“The success of its strategy shows in its growth, retention, partnerships, and the trend for other vendors in this space to leverage its infrastructure.”
The Forrester Wave™, Translation Management Systems, Q3 2025

60%

of enterprises will rely on partners to strengthen infrastructure before scaling AI

IDC

Five questions to ask before you build

Start from buy, not build. If a commercially available platform solves the problem, use it. If it gets most of the way there, build on top of it. Only build from scratch if the requirement genuinely cannot be met any other way.

The decision should be grounded in total cost of ownership, not project cost. This framework helps leadership teams evaluate the decision with the right questions.

1

Has this problem already been solved at enterprise scale?

If a purpose-built platform exists for this challenge, building from scratch means competing with a company whose entire R&D investment is focused on solving it. What justifies the belief that your internal team will do it better, and maintain it longer?

2

What is the total cost of ownership over five years?

Factor in ongoing engineering time, infrastructure costs, compliance overhead, security maintenance, and the opportunity cost of diverting engineering from revenue-generating work. Compare this against the cost of a platform subscription.

3

Who will maintain this system when the team that built it moves on?

Internal builds create knowledge dependencies. If the architect or lead engineer leaves, what is the plan? Document the institutional risk, not just the technical architecture.

4

Does building this create competitive advantage, or just operational capability?

If the system handles governance, quality, scale, and security, a platform delivers this faster and more reliably. Reserve building for the capabilities that differentiate your business in ways a platform cannot.

5

Can you build on top of a platform instead of from scratch?

A composable, API-first platform gives you the foundation without the maintenance burden. Your team builds the extensions, integrations, and workflows that are unique to your business. This is what Buy or Build means.

2x

vendor-led solutions succeed vs. internal builds

MIT NANDA Initiative


What enterprise leaders have learned about buy vs. build

The build vs. buy decision is rarely made once. Most enterprise leaders have lived through it multiple times, in different roles, with different outcomes. These perspectives come from leaders interviewed on the Phrase podcast In Other Words.


How enterprises moved from DIY to platform

These organizations moved from fragmented or in-house content operations to a platform model and saw measurable results.

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