Encord's research into establishing and scaling training data pipelines for machine learning highlights the challenges and potential inefficiencies of using in-house tools for data labeling. The text emphasizes the pitfalls of building and maintaining custom tools, which often detract from the core business of developing high-quality machine learning applications due to the escalating complexity and cost. Additionally, it underscores the importance of scalable and robust data management systems that provide seamless integration and communication among stakeholders. The use of pre-trained models and data algorithms is advocated to enhance efficiency and reduce costs, as these methods can significantly boost the return on investment by lowering the marginal cost per label. The conclusion suggests that investing in specialized training data software can offer long-term benefits, streamline processes, and better serve the needs of all parties involved, making it a more viable option for AI-focused companies.