How to Choose an AI Development Company: 15 Questions to Ask Before You Sign (2026)
Photo: Original photo by wocintechchat.com, CC BY 2.0. Cropped.
Key takeaways
- Ask to use live systems they've built. Demos and slide decks prove little.
- A working prototype on your own data within days is the best low-risk test of any AI partner.
- Your contract must give you the code, the data, the accounts and the IP on final payment.
- Prefer partners who talk about your metrics (leads, hours, cash) more than about models and buzzwords.
Why choosing an AI partner is risky right now
AI is the hottest label in software, and it's attracting everyone: genuine specialists, traditional web agencies adding "AI" to their services, freelancers wrapping ChatGPT in a website, and offshore firms promising everything. Prices for the same request vary wildly. Many businesses have already paid for an "AI chatbot" that couldn't answer basic questions, connected to nothing, and was abandoned within weeks.
The answer isn't to avoid AI. It's to choose partners carefully.
15 questions to ask an AI development company
About their track record
- Can I use a live system you've built that's similar to what I need? Not a video. A real chatbot to message, a dashboard to click through, a site to test.
- What measurable results did those clients get? Response times, conversions, hours saved, revenue. Ask for specifics and, if possible, a reference call.
- Which AI models and platforms do you use, and why? Good partners explain trade-offs (cost, quality, data terms) in plain language and don't lock you into one vendor without reason.
About your project
- What problem do you think we're solving, and how will we measure it? If they can't restate your problem in business terms, they're selling technology, not outcomes.
- Which of our systems will this connect to? WhatsApp, CRM, M-Pesa, calendar, accounting. AI that isn't connected usually fails.
- What will the AI do, what won't it do, and when does it hand over to a human? Guardrails show maturity.
- Can you build a working prototype on our real data before we commit to the full project? This is the single best test.
About delivery
- Who exactly will work on our project? Senior people in the sales meeting, juniors on the build, is a common pattern.
- What's the timeline, broken into milestones, and what do you need from us?
- How do you test AI quality before launch? Look for testing with realistic and adversarial scenarios, not just "it works on our demo".
About ownership, security and cost
- Will we own the source code, the data and all accounts on final payment? The answer should be an unconditional yes, in the contract. See why you must own your code.
- How do you handle our customers' personal data? They should mention Kenya's Data Protection Act, data-processing agreements, AI providers that don't train on your data, encryption and access control. See AI security for SMBs.
- What's the total cost: build, running costs and maintenance? Including AI usage, WhatsApp messages and hosting.
- What happens after launch? Support period, response times, optional improvement plans, and whether anything stops working if you don't renew.
- What guarantees do you offer? On delivery dates, on results, on refunds. Confident partners put something at risk.
Red flags
- No live examples, only mock-ups and videos
- Vague answers about which systems they'll integrate with
- "Our proprietary AI" with no explanation of what's underneath
- Large upfront payment before any working software
- No mention of data protection or security
- They own the code and license it to you, or keep your accounts in their name
- Promises of replacing whole teams or "fully autonomous" business operations
- Pricing that changes significantly once you show interest
Pricing models you'll encounter
| Model | How it works | Watch out for |
|---|---|---|
| Fixed price | Agreed scope for an agreed price | Clear scope and change-request terms |
| Time and materials | Hourly or daily rates | Budget caps and regular progress reviews |
| Subscription / platform | Monthly fee to use their platform | Lock-in, data export, price increases |
| Retainer | Monthly fee for ongoing work | Clear deliverables each month |
| Outcome-linked | Part of the fee tied to results | Agreed metrics and baselines |
For transparency, our own pricing is published: the AI Agent Launchpad at $4,997, OpsCommand Core Dashboard at $8,497 and OpsCommand Premium Suite at $14,997, each with a free 7-day prototype, a 90-day ROI promise and 100% code ownership, plus an optional $997/month optimisation plan. See services and pricing.
Local vs offshore partners
Offshore agencies may offer lower hourly rates or larger teams. Local partners understand M-Pesa, WhatsApp-first customers, Swahili, eTIMS, the Data Protection Act and how Kenyan businesses actually operate, and they're in your time zone. For AI that talks to Kenyan customers and connects to Kenyan payment systems, local context is worth a lot. Whatever you choose, the 15 questions apply.
Agency size: does it matter?
Large agencies offer depth and capacity. Smaller, founder-led studios often offer speed, senior attention and accountability. The right choice depends on project size and your need for direct access to decision-makers. We explore this trade-off in founder-led software development.
Use a prototype as your filter
The most reliable way to choose is to ask your shortlist for a small, paid or free prototype on your real data, with a fixed timeframe. In one to two weeks you'll learn more about each partner's understanding, speed, communication and quality than months of proposals could tell you. We offer this free for 7 days because it's the honest way to earn trust. See rapid prototyping in 7 days.
Contract essentials
- Scope, milestones and acceptance criteria
- Payment schedule tied to working deliverables
- IP assignment of code and deliverables on payment
- Accounts (cloud, WhatsApp, AI provider, domain) in your name
- Data-processing terms and confidentiality
- Warranty and support period, plus maintenance options
- Exit terms: handover, documentation and transition support
A simple scoring sheet
Score each shortlisted company from 1 to 5 on: relevant live work, business understanding, prototype quality, integration capability, security and data protection, ownership terms, pricing transparency, communication and support. Weight the first three most heavily. The highest score, not the lowest price, usually wins in the long run.
Test their AI yourself
When an agency shows you an AI agent they've built, try to break it politely. Ask questions outside its topic, write in Swahili or Sheng, give incomplete information, ask for something it shouldn't do (a discount, another customer's details), and see whether it hands over to a human gracefully. A well-built agent stays accurate, admits what it doesn't know and escalates. A weak one invents answers or loops.
After you've chosen
Make the partnership work: give a single decision-maker on your side, share real data and examples early, review the prototype with the staff who'll use it, and agree the success metric before building starts. Partners do their best work for clients who are clear and responsive.
How long should selection take?
Two to four weeks is enough: a week for shortlisting and first calls, one to two weeks for prototypes, and a few days for contract review. Longer processes rarely produce better choices, while the problem you're solving keeps costing money.
Next step
Write down your problem in one sentence and the metric that would prove it's solved. Send that to two or three companies and ask for a prototype. If we're on your shortlist, start here, and read our guide to AI automation for small business in Kenya to frame the conversation.
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Frequently asked questions
How do I choose an AI development company?
What questions should I ask an AI agency?
How much does AI development cost in Kenya?
Should I hire a local or offshore AI company?
What are red flags when hiring an AI agency?
Why ask for a prototype before signing?
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