Published on: 2025-07-10

Intelligence Report: Open vs Closed AI Models – Strategic Considerations for Enterprise Use

1. BLUF (Bottom Line Up Front)

The strategic decision between open and closed AI models involves weighing cost, performance, trust, and safety. Enterprises are increasingly adopting a mixed strategy, utilizing open models for internal development and closed models for customer-facing applications. This approach allows for flexibility and customization while maintaining security and performance standards. Key industry leaders, including those from General Motors, Zoom, and IBM, emphasize the importance of aligning AI model selection with specific enterprise needs and strategic goals.

2. Detailed Analysis

The following structured analytic techniques have been applied to ensure methodological consistency:

Adversarial Threat Simulation

Simulated potential cyber threats to assess vulnerabilities in open and closed AI models. This simulation helps in understanding how adversaries might exploit weaknesses in AI systems.

Indicators Development

Developed indicators to monitor anomalies in AI model performance and security, facilitating early detection of potential threats.

Bayesian Scenario Modeling

Utilized probabilistic models to predict potential cyberattack pathways, aiding in the development of robust defense strategies for AI systems.

3. Implications and Strategic Risks

The choice between open and closed AI models presents strategic risks, including potential cybersecurity threats and operational inefficiencies. Open models, while fostering innovation, may expose enterprises to increased security vulnerabilities. Closed models, although more secure, may limit flexibility and adaptability. The hybrid approach mitigates these risks by balancing innovation with security.

4. Recommendations and Outlook

• Adopt a hybrid AI model strategy to balance innovation and security.
• Implement continuous monitoring and threat detection systems to safeguard AI models.
• Engage in scenario planning to anticipate and prepare for potential cyber threats.
• Best Case: Enhanced innovation and security through a balanced AI model strategy.
• Worst Case: Increased vulnerability to cyber threats due to inadequate security measures in open models.
• Most Likely: Gradual adoption of hybrid models with improved security protocols.

5. Key Individuals and Entities

Barak Turovsky, Armand Ruiz, Xuedong Huang

6. Thematic Tags

AI strategy, enterprise AI, cybersecurity, hybrid models, innovation, risk management