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Which is better for you? Open vs Closed-Source AI

Thinking about integrating AI into a certain field or business? A key decision in adopting AI is picking between open-source or closed-source AI tools. Each offers distinct benefits and drawbacks. Understanding these options is vital to getting the results you want.

Open-source AI tools and models are publicly available. Meaning, anyone can access and examine its source code. This transparency encourages collaboration and innovation. Allowing developers to modify and improve these tools for a variety of use cases. For organisations needing custom solutions, it’s an attractive option. Popular examples include Meta’s Llama, Google's Gemma and Stable Diffusion. Businesses with skilled technical teams can leverage its lower cost of entry to experiment and refine systems, boosting efficiency and adaptability.


Young adult confused on what to choose between open vs closed source AI models. Make a doodle

In contrast, closed-source AI, or proprietary technology, is privately owned and licensed for public use. Its inner workings are kept confidential to protect intellectual property. Commonly known AI’s that fall into this category are OpenAI’s GPT-4, Microsoft’s Azure AI and Midjourney. While closed-source AI is less flexible than its open-source counterpart, it is optimised for quick integration. It often includes vendor-provided technical support when being implemented into existing systems. This makes it especially appealing to businesses without in-house technical expertise. Vendors ensure compatibility but may charge additional fees for custom modifications.

The choice between open and closed AI often hinges on budget and enterprise needs. Open-source AI eliminates licensing fees but may require investments for setup and maintenance. Benefiting businesses with established expertise that can further adapt these tools. Closed-source AI, while incurring higher initial costs, reduces the burden of system maintenance. It's ideal for industries like healthcare and finance, which demand reliability, security, and regulatory compliance.

Security is another critical factor. Open-source AI’s transparency enables developers to identify and address vulnerabilities collaboratively. Even so, this openness requires proactive security management. Closed-source AI, with centralised control and robust safeguards, minimises the risk of breaches. Vendors prioritise security, making closed-source AI well-suited for handling sensitive data. That said, dependence on vendors for updates and limited customisation options can pose challenges for specialised applications.

A hybrid approach, combining open-source flexibility with closed-source reliability, is possible. This strategy allows businesses to leverage the strengths of both, by using specific tools in tandem. Creating tailored solutions to address diverse needs. Though, effective implementation of hybrid systems requires expert guidance to ensure seamless integration.

Choosing the right AI model begins with understanding what each option offers. Open-source AI is transparent and easily modified making it ideal for custom tasks and innovation-driven projects. Closed-source AI delivers reliability and support. Which are critical for sectors requiring stringent security and precision. The optimal choice depends on an organisation’s goals, resources, and priorities. By thoughtfully evaluating these factors, businesses can harness AI to achieve their goals.



Sources:
https://www.forbes.com/sites/bernardmarr/2024/04/22/navigating-the-generative-ai-divide-open-source-vs-closed-source-solutions/
https://cloud.google.com/use-cases/open-source-ai
https://flyaps.com/blog/open-source-vs-closed-source-ai/
https://opensource.org/ai/open-source-ai-definition