Guide

How to choose an AI supplier: 10 criteria, questions and warning signs for a mid-sized company

This guide is for leaders and managers looking for an external company to implement AI who want to compare candidates fairly, not by who gives the best presentation. You get 10 assessment criteria, questions for the first meeting, a list of warning signs and the clauses worth having in the contract.

Author: Kacper Włodarczyk, CEO of ALGORCOMPPublished: May 29, 2026Reading time: 11 min readArtificial intelligenceFor: Mid-sized company
How to choose an AI supplier: 10 criteria, questions and warning signs for a mid-sized company

What kind of supplier you need: four types of company on the market

Companies doing very different things all operate under the banner of “AI implementation”. Before you start comparing proposals, work out which kind you need. The table below shows the four most common types, with their strengths and weaknesses.

A mid-sized company without its own AI team is usually best served by a supplier that combines advice with delivery. ALGORCOMP belongs to this group, which is all the more reason for us to encourage you to assess us against the same criteria as everyone else.

Types of AI implementation supplier
Type of supplierStrengthRiskWhen it fits
Tool vendor or resellerKnows its own product bestProposes its product whether or not it solves your problemYou know exactly which tool you need
Software development companyCan build almost any solutionWill not design the process or lead the change in your teamYou have a finished design and your own project manager
ConsultancyStrong analysis and strategyDelivery goes to another team that does not know the contextYou need a strategy and will choose the delivery partner separately
Implementation company combining advice and deliveryOne team from process analysis to go-liveMay favour the tools it specialises inYou have no AI team of your own and want one party to be accountable

Ten criteria for assessing an AI supplier

Score each candidate on a scale of 1–5 for each criterion in the list below. Before scoring, decide which criteria will rule a supplier out with a score of 1–2, regardless of the total. For most companies, these will be data security and verifiable references.

The first two criteria usually separate candidates the most. Everyone has a website full of AI slogans these days, but not everyone has working implementations in similar companies.

  • 1. Experience with similar companies. Has the supplier implemented AI in companies of your size and in similar processes, for example order or invoice handling?
  • 2. Working implementations, not just tests. Ask for examples of solutions that clients have been using day to day for several months, with a description of the results.
  • 3. Transparent architecture. The supplier should explain simply where the data is, which AI model will be used and what happens when the model makes a mistake or stops working.
  • 4. Security and data protection. A data processing agreement, processing in the EU, access control, a log of system actions.
  • 5. AI Act compliance and rules for using AI. Does the supplier know which obligations apply to your solution, and will they help you meet them?
  • 6. Integration with your systems. Do they know Microsoft 365 and your ERP or CRM, and do they know how to connect to them?
  • 7. A transparent pricing model. A fixed price for a defined scope, hourly billing with a cap, or a subscription – and a clear list of what is not included in the price.
  • 8. Support after go-live. Who maintains the solution, how quickly do they respond to a failure and what does further development look like?
  • 9. Knowledge transfer and ownership of the solution. Documentation, training and configuration in your environment, not in the supplier’s accounts.
  • 10. Verifiable references. The chance to speak to someone at the client company, not just a logo and a quote on a website.
How to choose an AI supplier: 10 criteria, questions and warning signs for a mid-sized company

What to ask at the first meeting

The first meeting should not be a demonstration of what AI can do. A good supplier will ask more questions than you: about the process, the data, the exceptions and how you measure results today. If the meeting turns into a monologue about technology, that is valuable information.

The answers to the questions in the list below quickly show whether a supplier has real implementation experience. Pay particular attention to the second question, because answering it honestly takes courage.

  • Which processes in companies like ours deliver benefits from AI fastest, and why those ones?
  • What went wrong in one of your recent implementations, and what did you do about it?
  • Where will our data be processed, and who on your side will have access to it?
  • Can the AI model provider use our data to train its models?
  • Which AI Act obligations apply to the solution you are proposing?
  • How long does it take before the first process runs day to day, not just in a test version?
  • Who from your team will work with us day to day, and what experience do they have?
  • How will we know the implementation has succeeded?

Warning signs that should end the conversation

Some signs deserve to be taken seriously however attractive the proposal is. The strongest of them: the supplier cannot name projects that are not worth doing. A partner who will do “everything” usually cannot tell a cost-effective automation from an impressive demo.

  • No examples of implementations with a description of results, only client logos.
  • Assurances that AI can be applied to any process.
  • No answer to the question about rules for using AI and AI Act compliance, or the answer “we’ll deal with that later”.
  • A price for the whole implementation without getting to know your process and without proposing a short analysis phase before quoting.
  • Long delays in replying, even at the sales stage.
  • Work handed to subcontractors whom the supplier will not name.
  • Reluctance to share the contact details of a client who can give a reference.
  • A price clearly lower than the other proposals, with no explanation of what is missing from it.
Checklist with AI supplier assessment criteria and a comparison of proposals in a table

A good AI supplier will tell you sooner what is not worth doing than promise to do everything.

What to include in the request for proposal

You send the request for proposal (RFP) to three to five candidates after the first meetings. It should give suppliers enough information to prepare a realistic proposal, not a general presentation.

A few pages are usually enough. An overly long and detailed request puts off the best suppliers, who can pick and choose, and says little about what really matters.

  • A short description of the company: industry, size, main processes.
  • The problem to be solved: what hurts today, how many cases a month, what it costs and what result you will count as success.
  • The current state: the systems that hold the data, and the skills of your IT department.
  • Scope: what is included in the project and, just as important, what is not.
  • Data and security requirements: place of processing, data processing agreement, access to systems.
  • The expected pricing model and timetable.
  • The criteria for assessing proposals, with their weightings, so that suppliers know what to focus on.
  • Dates: proposal submission, decision and planned start, as well as the contact person on your side.

How to compare proposals so that the lowest price does not win by default

The most common mistake when assessing proposals is comparing only price and timing. The cheapest proposal can turn out the most expensive in its consequences, because it leaves out data preparation, testing or maintenance. A simple table with weightings, agreed before the proposals are opened, helps.

The table below shows a hypothetical comparison of two proposals. Supplier B is cheaper and gets the top score for cost, but loses because of a weaker fit with the problem, a less experienced team and weaker data protection. The weighted score is the sum of each weighting multiplied by its score. For supplier A: 0.25 × 4 + 0.2 × 3 + 0.2 × 4 + 0.15 × 4 + 0.2 × 3 = 3.6.

A proposal without a list of risks should put you on your guard. Every AI implementation has risks, and a supplier who cannot see them will not be prepared for them.

Example comparison of two proposals on a 1–5 scale (hypothetical data)
CriterionWeightingSupplier ASupplier B
Fit with the problem described in the RFP25%43
Realistic plan, budget and list of risks20%33
Experience of the specific people on the team20%43
Security and data protection15%43
Cost and contract terms20%35
Weighted score100%3.63.4

A pilot before a large contract: how to set it up

Instead of signing a contract for the whole implementation straight away, commission a paid pilot from the finalist. It is sometimes called a proof of concept. It is a short project on one process and real data that tests both the solution and the working relationship with the supplier.

A pilot only makes sense if the result can be assessed. Before it starts, write down what you will count as success, for example “AI correctly extracts data from at least 9 out of 10 documents in the test sample”. Choose figures that fit your own process.

Be wary of very cheap pilots. They are often a demonstration of a ready-made solution on sample data, not a test on your documents and exceptions. We have listed the elements of a well-designed pilot below.

  • One process, real data and a test sample agreed in advance.
  • A measure of success and a threshold below which you do not continue.
  • A fixed price and deadline, with a clearly described deliverable.
  • The deliverable, including the configuration and documentation, stays with you, even if you do not go ahead with the full implementation.

What to include in a contract with an AI supplier

A contract for an AI implementation differs from a typical software contract. The solution uses models that their makers change, and data that belongs to you. The clauses below protect you from the most common disputes.

  • A data processing agreement compliant with Article 28 of the GDPR, with a list of subprocessors, including the AI model provider.
  • The place where data is processed, and a ban on using your data to train models without your consent.
  • Ownership of the configuration, instructions, documentation and test data on your side.
  • A service level agreement (SLA): response time for failures and availability of the solution.
  • Rules for changing the AI model when its maker withdraws the current one: who tests and who pays.
  • Division into phases, with the option of ending the relationship after each one, for example after the pilot or after the first quarter.
  • Exit terms: handover of access, data and documentation within an agreed deadline.

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FAQ

Choosing an AI supplier – frequently asked questions

Questions that management boards usually ask while choosing an AI implementation partner.

Is a Polish or a foreign supplier better?
A Polish supplier knows local regulations and systems, such as KSeF (Poland’s National e-Invoicing System) or Polish accounting software, and works in the same language and time zone. A foreign one may be better for a very narrow specialism or when the company operates in many countries. Assess both against the same criteria.
A large supplier or a small, specialised firm?
A large company has resources, but a mid-sized client may be a low-priority project for it. A very small firm offers close contact, but may have no cover when a key person leaves. Ask directly who will work on the project and who will step in if needed.
Does the supplier need ISO/IEC 27001 certification?
It is not a legal requirement, but a certificate makes assessment easier, because it confirms a working information security management system. If the supplier does not have one, ask for a description of its safeguards: access control, backups and incident handling. Also check that the certificate covers the services you are buying.
What if the chosen supplier is not delivering?
After three months, carry out a formal review: is work going to plan and budget, and are the agreed metrics improving? If most of the answers are negative, consider a change. A contract with phases, the right to end the relationship and ownership of the configuration on your side will make this easier.
How long does choosing a supplier take?
Done properly, it usually takes one and a half to two months. Initial meetings take about two weeks, the request for proposal and the proposals two to three weeks, and final meetings and negotiations another two to three weeks. Shortening this process usually comes at the expense of checking references.

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About the author

Kacper Włodarczyk — CEO of ALGORCOMP

Kacper Włodarczyk

CEO of ALGORCOMP

Kacper specializes in implementing Microsoft 365 Copilot, Copilot Studio, Power Platform (Power Automate, Power Apps, SharePoint) and AI agents for mid-sized B2B companies in Poland. He leads dozens of projects covering AI strategy, Power Platform governance, document workflow automation and sales processes. In his writing he focuses on the practical side of AI adoption in organizations — from the first proof of concept to company-wide rollout — with particular attention to data security, compliance (GDPR, NIS2, the AI Act) and return on investment.

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