Published

Dec 1, 2024

Why Are Companies Building Their Own Custom AI Models?

Why Are Companies Building Their Own Custom AI Models?

In an era where businesses are increasingly reliant on data-driven strategies, the limitations of one-size-fits-all AI models are becoming apparent. Companies across industries are recognizing the need for custom AI solutions to address their unique challenges and leverage proprietary data effectively. From enhancing decision-making to safeguarding sensitive information, tailored AI models are not just tools—they're strategic assets.

This blog post explores why organizations are moving toward developing their own AI systems, the tangible benefits of this shift, and the technologies that make it possible. By highlighting real-world examples we’ll uncover how businesses are redefining operational efficiency and innovation. We also examine how Hewlett Packard Enterprise (HPE) is empowering enterprises with its Private Cloud AI platform, bridging the gap between cutting-edge technology and practical applications.

 

Why Custom AI Models Are Gaining Momentum

Leading organizations are realizing that one-size-fits-all AI solutions often fall short of addressing specific business needs. Instead, they’re developing tailored AI models to solve unique challenges, harness proprietary data, and to gain a competitive edge. 

Custom AI, Custom AI Models, Custom Generative AI

As highlighted by the Financial Times, firms are recognizing the limitations of generalized AI systems and investing in specialized generative AI models tailored to their operational needs. This approach enables them to streamline internal workflows, enhance customer experiences, and explore new revenue streams while safeguarding sensitive information. For instance, companies in industries such as finance, healthcare, and supply chain management have deployed in-house generative AI to better predict market trends, optimize logistics, and personalize consumer interactions.

The adoption of custom generative AI models is not just about efficiency—it’s a strategic move to secure a stronger foothold in an AI-driven world. By taking control of their AI capabilities, businesses position themselves as innovators in an increasingly competitive marketplace.

For a comprehensive exploration of this trend, refer to the Financial Times article here.


The Strategic Shift Toward Custom Generative AI Models 

Businesses are increasingly pivoting towards developing in-house generative AI systems to secure a competitive edge. Consulting firm BCG emphasizes that to lead in the next five years, companies need a clear generative AI strategy now.  

Benefits of tailored AI models:

  • Adapted Precision: Unlike generalized AI systems, custom models can be trained on industry-specific data. This results in more accurate predictions, better insights, and higher efficiency in solving targeted problems.

  • Data Sovereignty: By creating their own models, businesses maintain full control over sensitive data, ensuring compliance with regulations like GDPR while reducing risks associated with third-party providers.

  • Cost Efficiency: Though initially resource-intensive, custom AI models save costs in the long term by delivering higher ROI through optimized operations and reduced dependency on external platforms.


Companies like Salesforce and Bloomberg who were among the first, have demonstrated how custom-built AI systems can significantly outperform generic models in targeted applications.

Salesforce’s Approach: Salesforce created “Einstein GPT,” a specialized AI assistant designed to enhance CRM functions. Trained on proprietary Salesforce data, Einstein delivers highly relevant insights, automates repetitive tasks, and integrates seamlessly with their ecosystem.


Custom AI, Bloomberg GPT, LLM, Custom Generative AI

BloombergGPT: Financial giant Bloomberg developed its own large language model to analyze market trends, process financial data, and generate insights faster than traditional methods. This model demonstrates how domain-specific training can unlock unparalleled efficiency and accuracy​.

These examples show that custom AI models aren’t just a passing trend. They’re becoming essential for organizations seeking to stay competitive by leveraging their proprietary data and addressing specific needs within their industry. 


HPE’s Role in Supporting Custom AI Development

Hewlett Packard Enterprise (HPE) has introduced Private Cloud AI, a turnkey solution designed to accelerate AI adoption for enterprises. This platform offers businesses the ability to deploy, manage, and scale AI applications seamlessly within their own secure environments. As AI continues to redefine industries, solutions like HPE Private Cloud AI are setting a new standard for operational efficiency and innovation.

HPE Private Cloud AI, Private AI, Cloud AI, Nvidia

Key Features and Benefits:

  1. Turnkey Deployment: HPE Private Cloud AI comes pre-integrated with essential AI software, models, and infrastructure. This ready-to-run solution allows businesses to get up and running in just a few hours, reducing the time-to-value for AI initiatives​.

  2. Unified Data Access and Privacy: The platform provides secure, unified access to enterprise-wide data, enabling businesses to harness their entire data estate without compromising on privacy or compliance. It ensures sensitive data remains protected while leveraging AI's potential​.

  3. Enhanced AI Workflows: Equipped with NVIDIA AI Enterprise Software and HPE AI Essentials, the platform supports a wide range of AI use cases, from conversational AI to large-scale data analytics. These tools optimize workflows, improve accuracy, and enhance productivity​.

  4. Scalability and Future-Readiness: With the flexibility to start small and scale up, HPE ensures that businesses can adapt their AI infrastructure to meet growing demands. The platform is designed to support evolving AI advancements, making it a future-proof investment​.

  5. Seamless Integration with Hybrid Cloud: HPE Private Cloud AI bridges on-premises and cloud environments, offering the best of both worlds. Organizations can train large models in the cloud and deploy them securely on-premises for sensitive applications​.


Real-World Applications for Leaders and Enterprises

For senior decision-makers, HPE Private Cloud AI offers a unique combination of agility and control. By enabling rapid experimentation with data-driven strategies while safeguarding proprietary data, the platform is ideal for industries requiring high levels of security and performance, such as finance, healthcare, and manufacturing.


Conclusion: The Strategic Edge of Custom AI Solutions

Custom AI models represent the next frontier in business innovation. They allow companies to break free from generic solutions, tailoring capabilities to specific needs while maintaining full control over their data. Real-world examples demonstrate the power of bespoke AI solutions to enhance precision, efficiency, and ROI. Solutions like HPE Private Cloud AI further underscore this potential by simplifying the deployment of AI models and enabling businesses to scale their efforts seamlessly. As you evaluate your organization’s AI strategy, ask yourself: Are you ready to invest in a solution that aligns with your unique business needs? And how could custom AI transform your decision-making, operational efficiency, and long-term growth?


Want to learn more about the latest AI solutions and how they can be tailored to your enterprise? 

Contact PS.Services today. Together, we can chart a path toward smarter and more sustainable innovation.

Have a nice day!

PS.Service team