A company can only evaluate a third-party AI tool properly when it knows the intended use. Drafting public marketing copy is different from processing customer records or connecting an AI agent to a production system. Define the tasks, the people involved, and the categories of information the tool would receive before comparing vendors.
Map the data flows
Identify the information sent to the provider, where it is stored, whether it is retained, and which subprocessors may receive it. Review the vendor's current terms and documentation rather than relying on a short product description. Assess whether any personal, contractual, or regulated information would be involved, and whether the proposed processing is appropriate for it.
Review permissions and integrations
A tool integrated with email, a document repository, source control, or a project-management system may have substantially greater access than a standalone chat interface. Request the least access the workflow requires. Check whether permissions can be restricted by user, workspace, resource, and action, and whether an administrator can revoke access centrally.
Understand the operational controls
Determine who administers the service, how authentication works, whether activity is logged, and what occurs when a user leaves the organization. Ask how incidents are reported, how data can be deleted, and what business continuity options exist if the service is unavailable. Technical safeguards should be considered alongside contract terms and support arrangements.
Conduct a limited pilot
A small pilot with non-sensitive or appropriately protected information can reveal whether a tool actually solves the intended problem. Document the workflows tested, the observed failure modes, the work required to supervise the output, and any changes to the risk assessment. The goal is not to eliminate uncertainty by assertion, but to reduce it through controlled evaluation.
Make the decision reviewable
Record why the tool was approved or rejected, which controls are required, who owns the integration, and when the decision will be revisited. AI tools and their terms can change quickly. A decision that was reasonable at procurement may need to be reconsidered after new capabilities, integrations, or uses are introduced.