Build vs Buy Software—How AI-enabled Software Development and Vibe Coding are Changing the Game

Choosing whether to build software internally or purchase an existing solution has long been a key decision for businesses. Recently, this choice has become more complex, not because the dilemma itself has changed, but because the technology landscape supporting it has evolved dramatically.

Artificial intelligence (AI) is transforming software development. In 2025, Sundar Pichai, CEO of Google, noted that over 30% of new code at Google is generated with AI assistance.  This shift extends beyond tech giants. Gartner predicts that by 2028, 90% of enterprise software engineers will use AI code assistants, up from less than 14% in early 2024, and that developers’ focus will shift from implementation to orchestration, system design, and ensuring AIs deliver high-quality outcomes.

Vibe coding is a software development approach, popularized by Andrej Karpathy in early 2025, where applications are built by describing desired outcomes in natural language to AI tools like Cursor Composer. Rather than writing code manually, users rely on AI to generate, debug, and iterate on the code, enabling development without deep knowledge of traditional programming syntax.

Meanwhile, buying software remains a fundamental strategy for companies prioritizing reliability, security, and ongoing support. The SaaS market is maturing, with vendors offering integrated, AI-enabled platforms that simplify complexity and improve interoperability.

These trends mean business leaders and technology strategists face nuanced choices. The decision is no longer simply build or buy. Instead, companies must discern when to use AI-driven build methods for competitive edge, when to rely on trusted SaaS platforms for operational resilience, and how to combine both effectively.

This article delves into these developments, spotlighting vibe coding’s rise, changing software economics, and practical advice for technology decision-making in 2026. Whether developing AI-powered applications or evaluating software procurement, this discussion aims to offer clarity and confidence in your build vs buy approach.

TL;DR

Choosing whether to build software internally or purchase an existing solution has been an age-old choice for businesses. The rise of AI and vibe coding to create software makes this choice increasingly complex. This article offers insights, analysis, and practical advice to support your choice.

The build vs buy landscape in 2026

Answering the question of whether to build software internally or buy from a vendor is more complex than ever. AI advances—especially agentic AI and vibe coding — have drastically lowered barriers to custom software development. Teams can now move from concept to working prototype in hours or days, easing traditional time and cost hurdles that favored buying.

At the same time, the SaaS market continues to consolidate and evolve. Vendors provide comprehensive AI-enhanced platforms that streamline operations, reduce integration challenges, and offer the level of security and reliability difficult to achieve in-house.

Today’s focus extends beyond speed and upfront costs to broader factors such as:

• The strategic value the software as a differentiator or core asset

• The risks and resource demands of maintaining, securing, and scaling custom-built solutions long term

• How effectively AI-powered tools can drive innovation and agility

• Whether SaaS solutions are flexible and integrated enough to meet evolving needs

Many companies are adopting a hybrid approach—using vibe coding and rapid prototyping to validate ideas before deciding to buy or build at scale. Rapid prototyping enables product managers, marketers, and other non-technical roles to communicate their vision more effectively. Using a prototype allows teams to show rather than tell—and while a picture is worth a thousand words, vibe coding can convey even more.

Building a quick prototype can make it easier to visualize an idea, align on direction, and gain buy-in from key stakeholders. In many cases, this becomes a more powerful medium than slides alone.

This approach balances innovation pace with operational stability and strategic control.

Navigating this landscape requires leaders to rethink software economics and risks, especially as AI continues to reshape development. Grasping these dynamics is essential for confident, forward-looking technology choices.

What is vibe coding and why does it matter?

Vibe coding is transforming software creation by using natural language prompts to create functioning code. This approach enables both developers and non-technical users to build applications quickly without traditional, manual coding. It significantly lowers technical and financial barriers, accelerating prototyping and innovation.

Unlike conventional coding, which requires specialized skills and time, vibe coding follows a “build first, refine later” model. Users give high-level instructions describing desired functionality, and AI generates code snippets, prototypes, or entire applications. This iterative method fosters experimentation and speeds up feedback loops.

Industry data highlights the scale of this shift. During his Thrive 2025 keynote, AppDirect CEO Nicolas Desmarais shared that in 2024, over 50,000 enterprise applications existed. Since then, vibe coding platforms like Lovable and Vercel have empowered creators worldwide. “What's absolutely staggering is that now there are over 300,000 applications published every day, and millions more are expected soon, signaling a new era in enterprise software creation,” said Desmarais.

“What's absolutely staggering is now there are over 300,000 applications published every day.” —Nicolas Desmarais, AppDirect Chairman & CEO

This trend is democratizing software development, allowing product managers, designers, and entrepreneurs to rapidly bring ideas to life without deep technical knowledge.

In a related article, How to Adopt AI Development at Scale: AppDirect’s Leap from 0% to Over 90% AI-generated Code, AppDirect SVP Mathew Spolin describes how AppDirect scaled AI-assisted development to achieve more than 90% AI-driven code in one year. It required organizational changes and mindset shifts but it yielded impressive results: speed increased, onboarding got faster, quality held or improved, and the work changed. Rather than focus on typing symbols and syntax on a keyboard, software developers shifted toward more strategic tasks like architecture, assumptions, and product thinking.

Desmarais says the experience at AppDirect is being echoed industry-wide, with companies seeing a 70% reduction in cost of development. “The other thing we're seeing is the shift from buy to build because the development cost is going down. In-house teams are building 5x more apps than traditional IT teams could support,” he added.

Vibe coding complements, rather than replaces, traditional development

"When someone says they're building it using AI tools or going with vibe coding, there's still a very material conversation to be had. This includes understanding the AI tools in use, security models, and deployment strategies, highlighting numerous opportunities for advisors." —Emanuel Bertolin, CRO, AppDirect

Despite its speed and accessibility, vibe coding complements rather than replaces traditional development. Established practices like manual coding by experienced engineers, mature frameworks, and low-code/no-code tools remain essential—especially for complex, large-scale, or highly regulated systems. These methods ensure architectural soundness, security, and maintainability that AI-generated code is still evolving to support fully.

Speaking to the AppDirect State of the Union webinar in February 2026, AppDirect CTO Andy Sen noted, “Some more complex applications are less easily replaced by AI. For anything that involves a lot of actual data processing where the results have to be one hundred percent predictable, there's no room for hallucinations or stochastic processes.”

“So for example, if you're dealing with any kind of financial software, core billing, or a system of record for medical information where precision and consistency are non-negotiable. those aren’t going to be replaced by AI anytime soon,” he emphasized.

Still, vibe coding fundamentally shifts software economics and processes. It accelerates innovation cycles and broadens who can build software, reshaping the decision of when to build custom solutions versus buy ready-made products.

For business leaders and developers addressing the build vs buy question in 2026, understanding vibe coding is crucial, impacting the speed, cost, and capabilities of software development.

Key vibe coding considerations

• Evaluate your team’s readiness to incorporate AI-assisted development tools.

• Identify use cases best suited for vibe coding such as rapid prototyping and internal tool creation.

• Plan for human oversight and code review to manage quality and security risks.

• Monitor evolving AI capabilities to continually optimize your development workflows.

It’s important to note that while it’s one thing to vibe-code business productivity apps for internal use or monetization purposes, vibe-coding a marketplace or storefront would involve far more complexity, and is not addressed in this article.

When to build your own software

Building software in-house has traditionally been a strategic choice when customization, control, and differentiation are paramount. The rise of vibe coding in 2026 has made building faster, more accessible, and more cost-effective, expanding the situations where building is advantageous.

Companies typically choose to build software to:

• Deliver proprietary capabilities or competitive advantages that off-the-shelf solutions cannot match

• Support unique workflows, internal business productivity needs or customer experiences critical to their business model

• Meet demands for strict control over data privacy, security, and compliance, especially in regulated sectors like fintech or healthcare

• Ensure agility to iterate and innovate quickly in response to market changes

• Reduce costs by enabling teams to build their own apps to meet their specific needs

As Sen observed, "From a purely technical point of view, applications involving complex data processing, where results must be 100% predictable, are less suited for replacement by AI solutions. This includes areas like financial software where precision and consistency are non-negotiable."

Using vibe coding for competitive advantage

"It’s never been easier to build your own custom solutions inside your company. However, this does not mean the era of SaaS is over. Instead, it's now more viable to replace point solutions or create a function that once required a large ERP system, right within your organization."

Vibe coding accelerates these efforts by allowing teams to rapidly create minimum viable products (MVPs) and proofs of concept in days or weeks rather than months. This enables product managers, designers, and even non-technical contributors to influence software outcomes directly, lessening the dependency on large engineering teams.

Rapid prototyping enables product managers, marketers, and other non-technical roles to communicate their vision more effectively. Using a prototype allows teams to show rather than tell—and while a picture is worth a thousand words, vibe coding can convey even more.

Building a quick prototype can make it easier to visualize an idea, align on direction, and gain buy-in from key stakeholders. In many cases, this becomes a more powerful medium than slides alone.

AI-driven development also reduces initial costs and technical obstacles, lowering risks inherent to custom builds. Companies can test ideas economically and pivot swiftly using market feedback.

However, building with vibe coding demands careful governance to avoid challenges such as code maintenance issues, security vulnerabilities, and ongoing support burdens. Human oversight is essential to ensure AI-generated software meets business objectives and quality standards.

Sen noted, "It’s never been easier to build your own custom solutions inside your company. However, this does not mean the era of SaaS is over. Instead, it's now more viable to replace point solutions or create a function that once required a large ERP system, right within your organization."

Speaking to the same AppDirect State of the Union webinar, AppDirect’s Chief Revenue Officer, Emanuel Bertolin, cautioned webinar attendees, "When someone says they're building it using AI tools or going with vibe coding, there's still a very material conversation to be had. This includes understanding the AI tools in use, security models, and deployment strategies, highlighting numerous opportunities for advisors."

In sum, building software powered by vibe coding in 2026 is compelling when speed, customization, and differentiation outweigh the complexities and risks of in-house development. For organizations able to manage these factors, vibe coding opens new pathways to innovation and competitive advantage.

Checklist: When to build SaaS internally

• Does the software offer unique capabilities or competitive differentiation?

• Are customization and data control vital to your operations?

• Can your team sustain long-term maintenance, support, and security?

• Will vibe coding help accelerate prototype validation and reduce upfront risks?

You can view a video clip of Andy Sen and Emanuel Bertolin discussing build vs buy on this LinkedIn post.

When to buy your software—The case for reliability and long-term stability

Buying software remains a vital strategy for many organizations in 2026, particularly when reliability, security, and scalability are paramount. Off-the-shelf SaaS solutions offer mature, battle-tested platforms that have been refined through extensive real-world use and continuous improvement.

Organizations tend to buy software when:

• Solutions must comply with strict regulatory, security, and operational standards without heavy internal development

• The software supports essential business functions where downtime or failure carries significant risk

• Vendors provide ongoing updates, maintenance, and support, reducing the technical load on internal teams

• Integration with a broad range of third-party services is necessary for smooth workflows

• They don’t have the right AI strategy in place or resources to maintain their vibe-coded applications

SaaS providers today increasingly embed AI capabilities to enhance automation, analytics, and user experience, all while maintaining proven stability. This blend of innovation and reliability offers substantial value for businesses seeking both agility and assurance

Buying software also allows companies to concentrate their technical talent on core differentiators instead of foundational tools, accelerating time-to-market and reducing technical debt. Vendor expertise helps ease operational burdens.

Still, buying requires careful assessment of vendor roadmaps, data ownership terms, and the risk of vendor lock-in. Choosing solutions aligned with business goals and offering integration flexibility helps avoid costly future migrations.

Bottom-line, buying is typically preferable when operational continuity, security, and long-term support outweigh the need for deep customization or rapid iteration. It remains an essential pillar of balanced software strategies in 2026.

Actionable insights

• Favor buying when stability, compliance, and vendor support are more important than customization.

• Review vendor plans regularly to ensure alignment with evolving needs.

• Verify data control and integration options to minimize lock-in risk.

• Use AI-powered SaaS platforms and features to boost innovation without extra infrastructure complexity.

The hybrid model: Validating with vibe coding, scaling with SaaS

Many organizations in recent years have adopted a hybrid approach that combines the agility of vibe coding with the stability of SaaS platforms. This strategy allows rapid innovation without compromising reliability or long-term operational needs.

The hybrid model typically unfolds in two phases:

Rapid validation and prototyping—Where vibe coding is used to quickly turn ideas into working software

Scaling and production deployment—Where mature SaaS solutions provide security, support, and integration.

This phased approach addresses common trade-offs in the build vs. buy decision—between speed and stability. Vibe coding empowers teams to test assumptions, refine user experiences, and experiment with minimal upfront investment. For instance, product managers or designers can create minimum viable products (MVPs) or internal tools to validate concepts within days or weeks. This reduces risk by identifying product-market fit issues early and aligning development with customer feedback.

Once a prototype gains traction, transitioning to a SaaS platform provides critical benefits:

• Established security and compliance certifications—Protect sensitive data with certifications like SOC 2 and GDPR.

• Vendor-managed infrastructure—Ensure high availability and disaster recovery capabilities.

• Regular updates and professional support—Relieve internal IT and engineering teams from ongoing maintenance.

• Rich ecosystems and APIs—Enable integration with other enterprise systems, creating seamless workflows.

Successful hybrid adopters plan carefully for migration.

Key considerations in adopting a hybrid SaaS approach

• Define clear criteria for moving from vibe coding prototypes to SaaS production, based on adoption, performance, and security

• Design modular prototypes with data portability in mind to ease integration and migration

• Involve cross-functional teams early, including security, compliance, and operations, to align requirements

• Partner with vendors focused on customer success and flexible contracts that accommodate evolving needs

By blending vibe coding’s speed with SaaS’s proven reliability, organizations gain a solid framework to innovate continuously while maintaining business continuity.

The bottom line on build vs buy: Adopt a strategic mindset

The age-old build vs buy question has evolved into deciding how and when to combine building, buying, and leveraging platforms to boost innovation and operational stability.

Experimenting with vibe coding and AI-based prototyping offers low-risk ways to validate ideas quickly, cutting time to market and reducing upfront costs.

Yet successful innovation requires strong governance, careful management of technical debt, and planning for long-term maintenance to avoid hidden liabilities.

Looking ahead, AI, digital platforms, and interconnected ecosystems will increasingly shape software development and procurement. Leaders who balance these elements well will position their organizations for sustained agility and growth.

To guide your decisions, consider this framework

• Assess your innovation velocity needs versus operational risk tolerance.

• Use AI-assisted build tools to rapidly prototype and validate critical software components.

• Buy mature SaaS solutions when reliability, security, and scalability are paramount.

• Leverage digital platforms and ecosystems to extend capabilities and accelerate delivery.

• Implement governance processes to manage quality, security, and long-term evolution.

Approaching the build vs buy question with an integrated mindset will help you confidently navigate the complex software landscape of 2026 and beyond.

More reading about AI and its impacts on tech

How to Adopt AI Development at Scale: AppDirect’s Leap from 0% to Over 90% AI-generated Code—Mathew Spolin reveals how AppDirect rapidly achieved over 90% AI-generated code in just one year through organizational shifts and new metrics that boosted delivery and quality.

The 4 Keys of AI Transformation—A Blueprint for AI-driven IT—Discover a practical blueprint to accelerate growth and enhance customer experience by harnessing AI across innovation, partnerships, and customer engagement.