Leadership1 distinct publisher3 min readUpdated
A Forbes Tech Council argument worth taking seriously: AI cut the cost of the workflow layer, not the compliance-bearing core. That makes breadth a cost line rather than a moat.
The Board Room · Leadership desk
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Andrew Siemer, founder and chief executive of Inventive Group, used a Forbes Tech Council column to argue that the loudest version of the buy-versus-build conversation, in which cheap AI-assisted development puts SaaS in trouble and every company starts building, is also the least useful one [1][2]. That matters for anyone holding a renewal calendar, because his case is not that the line collapsed but that it moved: AI changed software economics unevenly, and did not erase the advantages of vendor scale, compliance programs or integrated platforms [3].
The part that got cheaper, on Siemer's account, is the layer around the business: the dashboards, internal tools, workflow interfaces and decision-support systems teams live in every day [4]. The core system underneath those workflows is still often worth buying; the workflow wrapped around it increasingly is not [5]. His reason is unsentimental about what a system of record actually is. It holds the historical data, sits inside a dense integration web, supports audit requirements and serves as the operational source of truth for several teams at once, which makes replacing it expensive, risky and often unnecessary [8]. The friction sits elsewhere, in the extra screens, awkward handoffs, narrow tasks buried inside broad software and workflows that almost fit but never quite do [9].
The older logic was simpler. Buy-versus-build was mostly settled by cost, vendors spread development spend across many customers, and buyers accepted awkward workflows as the price of avoiding a custom build [6]. Siemer's point is that AI did not change the desirability of fit, only the price of getting closer to it [7]. Note the evidentiary standard here: he says the cost of building at the edges has dropped enough that old assumptions deserve a second look, and offers no figure for how far [c7b]. His firm sells software product work, which is worth holding in view when reading a piece that argues for building at the edges [1].
Two external markers are cited. The Wall Street Journal reported in April 2026 that large companies were not ripping out platforms like Salesforce, SAP and Workday, but negotiating harder, customizing more and building smaller AI-driven tools around them [10]. A 2026 paper on agentic AI and enterprise software economics argues the collapse thesis is overstated while finding that building is most compelling for commodity utilities and differentiating custom applications, and much less compelling for regulated and mission-critical systems [14]. Both land on the same boundary: the governed core stays rented, the surface is contestable [1].
The consequence for budgets is the reframing of breadth. Where a team uses a narrow slice of a large product and the rest mostly adds complexity, the buyer is subsidizing breadth it does not need in order to reach the part that matters [11]. Siemer stops short of saying every narrow use case should become an internal build, but he does argue feature breadth is getting harder to defend as an automatic advantage [12]. His buy test is narrow and usable: source of truth, real regulatory burden, or a seat at the centre of a dense and valuable integration ecosystem [13].
Watch what happens on the second renewal after a team ships its own workflow layer. If the vendor holds price while the used surface shrinks, the tax is real and visible; if vendors start pricing narrow slices, the moat is being rebuilt on commercial terms rather than feature count.
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Ranked by verification strength, evidence, and original report placement.
In April 2026, The Wall Street Journal reported that large companies were not ripping out platforms like Salesforce, SAP and Workday, but were negotiating harder, customizing more and building smaller AI-driven tools around those systems instead.
Andrew Siemer is Founder & CEO of Inventive Group, described in his Forbes Tech Council byline as a software product team; he is also a firefighter and veteran.
Siemer writes that the loudest version of the buy-versus-build conversation right now, that AI made custom software cheap so SaaS is in trouble and every company should build its own tools, is also the least useful one, and that he does not think it is right.
Siemer argues AI changed the economics of software but not evenly: it did not suddenly make every category of SaaS irrational, and did not erase the advantages of vendor scale, compliance programs or integrated platforms.
For a long time the buy-versus-build decision was mostly settled by cost: companies bought badly fitting off-the-shelf software because a custom build was too expensive, SaaS vendors spread development cost across many customers, and buyers accepted awkward workflows as the price of avoiding a custom build.
Siemer writes that systems of record hold historical data, sit inside dense integration webs, support audit requirements and often serve as the operational source of truth for multiple teams, so replacing them is still expensive, risky and in many cases unnecessary.
Evidence-backed comparisons of source perspectives and observed adoption signals. Read the methodology
Which Builder, Operator, and Investor concerns the observed source mix emphasized—not a truth score.
Evidence, demonstrated adoption, hype gap, incentives, and confidence are assessed independently, each on its own current evidence. How these are measured.
One contributed op-ed, no primary data
The entire cluster is a single Forbes Tech Council column. Its descriptive and definitional claims (what systems of record carry, the keep-buying test, the historic cost logic) are internally clear and self-consistent, but the load-bearing empirical premise - that the cost of building at the edges has dropped enough to revisit buy decisions - is hedged as personal observation with no figure, and the two corroborating works are paraphrased without links or identification.
Single secondhand market signal
Exactly one behavioural datapoint exists in the supplied material: a relayed April 2026 WSJ report that large enterprises are negotiating harder, customising more and building small AI tools around Salesforce, SAP and Workday rather than replacing them. That is consistent with the article's boundary but is secondhand, undated beyond the month, and unaccompanied by any counts, spend figures or named deployments of built workflow layers.
Deflationary framing, unquantified core premise
The piece actively dampens hype: it calls the SaaS-is-dead framing the least useful one, warns against reflexive internal builds, and defends vendor scale, compliance programmes and integration density. The residual overstatement is modest and specific - a cost decline presented as sufficient to change renewal behaviour without any number behind it, plus a build-the-layer recommendation from an author whose firm builds such layers, supported by a single secondhand market datapoint.
Vendor-aligned contributed byline
The author is Founder & CEO of Inventive Group, described in the byline as a software product team, and the article's recommendation is that companies should own the custom workflow layer - directly adjacent to what such a firm sells. The venue compounds this: Forbes Tech Council columns are member-contributed rather than independently reported. The piece never weighs this interest, though its caveats against reflexive building cut partly against its own commercial direction.
Coherent framing, weak verification
Confidence is limited by single-publisher, single-author sourcing with a clear commercial interest, an unquantified central premise, and two corroborating references that cannot be checked from the cluster. What raises it above the floor is that the article's most consequential distinction - governed core stays rented, surface workflow layer is contestable - is internally consistent and is echoed by both external markers it cites.
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1 article · August 18, 2026