It’s enticingly easy to build AI-powered software. But if you do it for the wrong reasons – or don’t grasp the trade-offs – you’ll likely waste time and money.

The breakthrough capability of LLMs has flipped SaaS on its head: the biggest prize is in building software that replaces human work, instead of building tools that help humans do that work.

Our focus is on AI-first customer service, and our vision is that in a short number of years, the vast majority of customer service interactions will be with AI, not humans. This is a multi-hundred-billion-dollar opportunity and success means enabling all businesses to be leaner and more nimble, while also providing world-class customer service.

Every company can benefit from this shift by redeploying talent and capital to innovation and growth. But we are still early in the adoption curve, and great outcomes are not guaranteed – they hinge on the choices you make. Two stand out:

1. Whether to build or buy an AI agent.

2. If buying, the AI agent you choose. (Hint: Fin.)

I have a simple mental model for ROI (return on investment): What percentage of CS volume can I automate? And how much does it cost relative to human costs?

A further important nuance is that as you increase the automation rate, you are doing harder and more costly work so the ROI gains accelerate.

I respect anyone who wants to build their own AI agent, but here are the pitfalls you must overcome to match – let alone surpass – a “buy” approach.