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5 questions to ask before buying AI

Before committing to any AI vendor, make sure you can answer these 5 questions. If you can't - or if the vendor can't - that's a red flag.

01
Who owns the data you put into this tool?
If the vendor owns or can use your data to train their models, your proprietary information could end up anywhere - including with your competitors.
Red flag
The vendor is vague, says "it depends," or the terms say they can use your data for "product improvement."
02
What happens to your data if you cancel?
If there's no clear data export and deletion process, you could lose years of work or have your data held hostage.
Red flag
No written data portability or deletion policy. No timeline for data removal after cancellation.
03
How does the AI make its decisions?
If you can't explain to a client or regulator why the AI recommended something, you're carrying risk you can't see.
Red flag
The vendor calls it "proprietary" and won't explain the logic, or says "just trust the algorithm."
04
What's the total cost after year one?
Many AI tools have usage-based pricing that spikes as you scale, or lock you into annual contracts with steep renewal increases.
Red flag
Pricing is only "per seat" with no cap on usage charges. No published renewal pricing. Discounts contingent on multi-year lock-in.
05
What happens when the AI is wrong?
Every AI makes mistakes. The question is who's liable, what's the fallback process, and does the vendor have insurance for AI errors.
Red flag
Terms of service disclaim all liability for AI outputs. No human-in-the-loop option. No error reporting or correction process.

How many could you answer confidently?

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