AI Vendor Evaluation Guide
A comprehensive framework for evaluating AI vendors. Use these questions during your due diligence process to make informed procurement decisions.
What security certifications does the vendor hold? (SOC 2, ISO 27001, etc.)
Look for SOC 2 Type II, ISO 27001, and industry-specific certifications.
CRITICAL IMPORTANCEHow is customer data encrypted at rest and in transit?
Expect AES-256 encryption at rest and TLS 1.3 in transit.
CRITICAL IMPORTANCEWhere is data stored and processed geographically?
Important for GDPR and data residency compliance.
HIGH IMPORTANCEIs customer data used to train AI models?
Ensure clear opt-out options and understand data usage policies.
CRITICAL IMPORTANCEWhat is the data retention and deletion policy?
Should align with your compliance requirements.
HIGH IMPORTANCERed Flags to Watch For
No clear data privacy policy or vague answers about data usage
Lack of security certifications or unwillingness to share audit reports
No ability to opt out of model training with your data
Vendor lock-in with difficult data export or contract termination
No transparency about AI model limitations or error rates
Unclear pricing that may lead to unexpected costs