What to Ask Before Starting an AI Project

The critical questions every business leader should answer before investing in AI. Covers business case, data readiness, and vendor evaluation.

Best for: Business owners, IT leaders Practical guide for business decision-makers

Who this is for

Business owners and IT leaders evaluating an AI initiative and wanting to ask the right questions before committing budget.

Question this answers

What should we assess and what questions should we ask before starting an AI project?

What you'll leave with

  • Business case questions that reveal whether AI is the right solution
  • Data readiness questions that prevent expensive surprises
  • Technical questions to understand scope and feasibility
  • Red flags in vendor proposals that signal trouble

Why these questions matter

Most AI projects that fail don't fail because of bad technology. They fail because the business problem wasn't well-defined, the data wasn't ready, or the expectations didn't match reality.

Asking the right questions upfront costs nothing and can prevent expensive mistakes. Here are the questions we ask every client before recommending an AI approach.

Business questions

Name the problem before you name the tool

  • What specific business problem are we solving?

    If the answer is "we want to use AI" rather than a specific problem, step back.

  • How do we solve this problem today?

    Understanding the current process reveals what AI needs to improve.

  • What does success look like?

    Time saved? Cost reduced? Quality improved? Define it before you start.

  • How will we measure success?

    If you can't measure it, you can't prove it worked.

  • What happens when the AI gets it wrong?

    Every AI system makes mistakes. Plan for error handling and human review.

  • Who will use this and how often?

    Usage patterns determine whether the investment makes sense.

Data questions

Is your data ready for AI?

  • Where does the relevant data live?

    Multiple systems? Spreadsheets? Email? The more scattered, the more prep work.

  • How clean is the data?

    Inconsistent formats, duplicates, and gaps all need fixing before AI can use it.

  • How much data do we have?

    Not all AI needs big data, but RAG systems need sufficient content to be useful.

  • How often does the data change?

    This determines whether you need a one-time pipeline or ongoing sync.

  • Are there privacy or compliance constraints?

    Healthcare, financial, or personal data adds requirements.

Technical questions

  • Does this need AI or would rules-based automation work? If the logic is fully definable, automation is cheaper and more reliable than AI.
  • Where will the AI run? Cloud, on-premises, or hybrid? This matters for latency, cost, and data privacy.
  • What systems does it need to integrate with? APIs, databases, document stores, email systems, each integration adds complexity.
  • What's our tolerance for error? An AI that's right 90% of the time is amazing for some uses and unacceptable for others.
  • Do we need explainability? Some use cases (legal, medical, compliance) require the AI to show its reasoning.

Questions for AI vendors

Questions to put to any AI vendor

  • Can you show a similar project you've delivered?
  • What data preparation is needed before we start?
  • How long will a proof of concept take?
  • What are the ongoing costs after launch?
  • How do you handle model updates and drift?
  • What happens if we want to switch vendors later?

Red flags in vendor responses

Warning signs in an AI pitch

  • Promising specific accuracy before seeing your data
  • Skipping the discovery phase and going straight to development
  • Unable to explain how the AI will work in plain language
  • No mention of data preparation, testing, or error handling
  • Quoting on a fixed scope without understanding your data
  • Using buzzwords without concrete deliverables

Key takeaways

  • Start with the business problem, not the technology. "What are we trying to improve?" comes before "Should we use AI?"
  • Data quality is the number one risk factor in AI projects. Assess it before you commit budget
  • If you can't describe how you'd measure success, the project isn't ready
  • Be wary of vendors who promise specific accuracy numbers before seeing your data
  • A $5K-$15K discovery phase can save you from a $100K mistake
AI StrategyProject PlanningRAG

Meet the person

Written by the person who does the work

This guide comes from real projects. If it raises a question about your own system, you can ask the founder directly.

HELLO PEOPLE designs, builds and looks after AI, software, app and data solutions for Australian businesses, with senior expertise on every project and a scope agreed before work starts. For AI, that means working on your own data, with a person able to check every answer.

Since 2007, HELLO PEOPLE has delivered more than 100 projects from Perth for small and medium businesses across Australia: custom software and apps, system integrations, data migrations, reporting and dashboards, and AI that works inside the systems a business already runs.

I lead every engagement myself. I trained in accounting before moving into IT, hold accounting and IT professional qualifications and an MBA, and bring more than 20 years of experience across sales, service delivery, inventory and compliance. I am also a PhD candidate in AI at Curtin University, researching retrieval-augmented generation (RAG), so the technology is always judged by what it does for the business.

  • An old-fashioned service

    Small and boutique. The person who scopes your AI project is the person who builds it, and the same person checks its answers before your team relies on them.

  • Quick responses

    No ticket queue and no account manager in between. You hear back within one business day, usually sooner.

  • A long-term partner

    The first AI project is the start, not the end. When you need the next system, integration or report, you call the same person, who already knows your business.

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Ask it here and it comes straight to the founder. No sales call, no obligation, and a real answer even if the answer is that you do not need us.

Kasun Wijayamanna, Founder Kasun Wijayamanna
Founder, replies within one business day

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