Here’s how you can save yourself from those shady ‘ChatGPT’ covered AI experts that promise a wonderland and deliver a dump. After watching countless companies flush their custom AI development budgets down the toilet, I’ve got to share these critical mistakes that you should be aware of when choosing an AI development Partner and also my $10,000 framework on how to choose the best AI company
4 Mistakes to Avoid When you Choose the best AI company
MISTAKE #1: FLYING BLIND WITHOUT A BATTLE PLAN
Holy smokes, the number of businesses that dive into AI business process automation without knowing what they actually need is staggering. It’s like walking into a Rolls Royce dealership with a bicycle budget and no driver’s license.
Here’s the truth that nobody wants to admit: if you haven’t worked with an AI consultant to map out your needs, you’re basically throwing darts blindfolded.
A good AI consultant will help you answer the following questions and draft an artificial intelligence business strategy:
- Audit your current operations
- Identify the real money-making opportunities
- Save you from building expensive solutions to problems you don’t have
- Tell you when AI isn’t the answer (yes, sometimes it isn’t)
MISTAKE #2: LAZY RESEARCH (OR NO RESEARCH AT ALL)
For the love of God, people, we live in the information age! There’s absolutely NO EXCUSE for not doing your homework. Yet I see businesses picking AI automation services like they’re choosing lunch spots—whatever’s closest and looks decent is a good AI partner.
Here’s your research plan to Choose the best AI company:
- Hit up Clutch.co to search for your AI partner – it’s like Yelp for tech companies, but with actual verification.
- Check Trustpilot and Globee ratings
- Google them like your business depends on it (because it does)
- Look for AI service providers with experience in business process automation in YOUR industry
- Check their reviews
MISTAKE #3: IGNORING THE RED FLAGS IN THE DATA
Listen carefully: Numbers don’t lie, but people do. When comparing services, you need to look at:
- TESTIMONIALS: Shady AI service providers can have fake testimonials. So, Look for specific results, not fluffy praise like “They’re great to work with!”, this would help you filter to find the best AI Development for Businesses
- CASE STUDIES: Demand detailed case studies with real metrics. If they can’t show you the KPIs, they probably never hit any.
- DATA SECURITY: This is the boring part that could sink your company. If they start sweating when you ask about their security protocols, RUN.
- COMMUNICATION: See what tools or processes they have for keeping you in the loop. Tezeract, for example, creates a dedicated Slack space for both teams (client and development) and shares daily and weekly reports, with progress meetings scheduled at agreed times.
And here’s the sauce – talk to their recent clients. Not the ones they parade around like show ponies, but the ones from the last six months. That’s where the real dirt is.
MISTAKE #4: IGNORING THE TECH STACK
This is where things get messy. Your shiny new custom AI solution has automated your business processes. But it also needs to play nice with your existing systems, or you’re buying a Ferrari you can’t get out of the garage.
Ask yourself:
- Will this integrate with our current systems, or are we looking at a complete overhaul?
- Can our team actually use this thing, or will we need to hire a priest to interpret it?
- What’s the learning curve for our employees?
MISTAKE #5: NOT UNDERSTANDING THE MONEY GAME
Different AI partners have different payment models which can make or break your project. You’ve got:
- HOURLY: Great for smaller projects, terrible for big ones. Watch those hours stack up faster than pancakes at a breakfast buffet.
- PROJECT-BASED: Sounds good until you need changes. Then watch those “out of scope” charges pile up.
- MILESTONE: My personal favorite and by far the best one for AI Development for Businesses. You pay when they deliver, or you don’t. Simple as that. And this is what the best AI services follows.
MISTAKE #6: GETTING SEDUCED BY LOW PRICES
Oh boy, this is the granddaddy of all mistakes when choosing the Best AI Software Development Company. Let me tell you a quick story about a company that chose the cheapest option. They saved $40,000 upfront. Feels good, right?
Six months later, they had:
- A system that couldn’t scale
- Security concerns with inadequate protocols
- Zero documentation
- A team that disappeared faster than free donuts in an office
Total cost to fix everything? $180,000. That “bargain” turned into a money pit fast.
Now you know what to avoid when choosing AI automation services for your next AI-powered solution. But let me give you three top secret tips on how to find the best of the melons by sniffing just like your grandma used to…
Top 3 Must-Know Tips To Select the Best AI Company
Let’s go.
MUST-DO #1: FOLLOW THE DON’TS (SIMPLE, RIGHT?)
Look, I know it sounds obvious, but you’d be amazed how many executives read through warnings like the ones above and think, “That won’t happen to us” right before it happens to them especially when choosing the Best AI Software Development Company. Take those don’ts, print them out, and tape them to your forehead if you have to. They’re not suggestions—they’re survival tips.
MUST-DO #2: RUN A PILOT PROGRAM TOGETHER
The number of companies that skip this step is mind-boggling. It’s like marrying someone without dating them first. A proper pilot program (even with the right AI development company) is your safety net, and here’s exactly what it needs:
- 4-8 weeks MAX (if they can’t show results in 8 weeks, they won’t show them in 8 months)
- Your actual data. Not some polished demo data that makes everything look perfect
- Success metrics that are crystal clear. They can be accuracy, model optimization, speed, timely delivery, data security, etc. But have a clear KPI for that and communicate that openly
- Budget cap at 20% of your total project investment (if they’re asking for more, they might be treating your pilot like a full project)
And here’s the part nobody tells you: Get the scale-up terms IN WRITING during the pilot contract. Otherwise, you’ll nail the pilot and suddenly find yourself in a pricing that makes your CFO need therapy.
MUST-DO #3: MAINTAIN EFFECTIVE COMMUNICATION
This is where most projects go sideways, the right AI development company is the one with the right communication processes. You need more than some vague promise of “regular updates.” Here’s what you deserve:
- A dedicated communication channel (Slack, Teams, whatever – but it better be JUST for your project)
- Regularly scheduled standups
- Weekly reports with REAL metrics (not just “we’re making progress”)
- Monthly deep dive meetings into strategy
MUST-DO #4: LOCK DOWN THE INTELLECTUAL PROPERTY
This is the part that makes my blood boil. The number of companies that don’t own their own AI solutions is criminal. Here’s what you need to own (and I mean LEGALLY own):
- Every single custom algorithm they build for you
- All the training data AND the results
- Complete documentation (not just some half-baked user guide)
- Source code (yes, ALL of it)
- The right to modify and scale without begging for permission
Get it in writing, and for heaven’s sake, have your lawyers earn their retainer.
HERE’S THE REAL TRUTH: Successfully implementing AI for business process optimization isn’t just about avoiding mistakes—it’s about making the right moves at the right time (like chess). Skip any of these must-dos, and you might as well take your budget and use it as confetti at your going-away party.
Looking for a concrete place to start?
Grab our 7-Step Automation Checklist. It’s packed with actionable steps that’ll help you avoid the nightmare scenarios I’ve seen play out more times than I care to count.
Choose the right AI company wisely,
Your friend and mentor.
