Vendor Evaluation
The AI vendor landscape is a minefield of bold claims, overlapping capabilities, and pricing models designed to confuse. This lesson gives you a structured framework to cut through the noise, evaluate vendors honestly, and make decisions you will not regret in 18 months.
What you will learn
- A vendor evaluation framework that goes beyond feature checklists
- The build vs. buy vs. partner decision matrix
- Red flags that signal a vendor will not deliver on their promises
- How to structure contracts and pilots to protect your organization
The First Decision
Build when AI is your core competitive advantage and you need full control. This requires significant in-house talent and infrastructure. Buy when the problem is well-understood and commercial solutions are mature. Customer support AI, document processing, basic analytics. Partner when you need domain-specific AI but lack internal capability. Consulting firms and boutique AI shops can accelerate your timeline.
Most organizations over-index on building. The ego of custom development is seductive but expensive. Unless AI is your product, strongly consider buying or partnering for your first two or three use cases. Build institutional knowledge, then bring capabilities in-house strategically.
Beyond the Feature Matrix
Evaluate vendors across six dimensions: capability fit (does it solve your actual problem), integration complexity (how hard is it to connect to your systems), total cost (licensing, implementation, training, ongoing), vendor viability (will they exist in three years), data handling (where does your data go and who can access it), and exit strategy (how painful is it to leave).
Run a proof of concept with your actual data on your actual problem. Vendor demos use curated data on ideal scenarios. You need to see performance on your messy, real-world data. Any vendor unwilling to do a POC on your data is not confident in their product.
Vendor Evaluation — Match Each Dimension to What It Assesses
Tap one on the left, then its match on the right
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