The AI Vendor Risk Landscape
AI vendor risk searches have grown 190% year-over-year. Success depends less on vendor promises and more on mitigating quantifiable risks from day one.
AI Vendor Failure Probability Calculator
Answer three questions to get your project's baseline risk score before vendor selection.
Your Project's Baseline Failure Probability
Medium Risk: Extra due diligence recommended for vendor selection.
Vendor Scorecard Framework
Once you understand your baseline risk, use this scorecard to evaluate potential vendors. A vendor should decrease your risk, not add to it. Below are the key evaluation areas. Use the interactive calculator to score a specific vendor.
Interactive Vendor Scorecard
Rate a potential vendor on each criterion to get their weighted score.
Technical Fit
40% weightHow well does their solution match your technical requirements?
Business Understanding
30% weightHow well do they understand your business context and goals?
Process & Communication
30% weightHow effective are their project management and communication?
Overall Vendor Assessment
Poor Fit: This vendor shows significant gaps. Consider other options or request major improvements in low-scoring areas.
Risk Mitigation Framework
If your project's failure probability is medium or high, it doesn't mean you shouldn't proceed. It means you must implement a rigorous risk mitigation strategy. Here are the essential steps:
- Confirm vendor has at least two case studies in your industry.
- Build a 10% buffer into the project timeline and budget.
30-Day Vendor Selection Roadmap
Use this structured 4-week process to move from initial research to a signed contract with the right partner.
- Week 1: Risk Assessment & Requirements Gathering. Complete the Failure Probability Calculator. Solidify your project scope, budget, and technical requirements into a formal RFP (Request for Proposal).
- Week 2: Vendor Evaluation & Scoring. Send your RFP to a shortlist of 3-5 vendors. Use the Scorecard Framework to objectively score their proposals and initial calls.
- Week 3: Reference Checks & Deep Dive. Conduct thorough reference checks with past clients (especially those in your industry). Schedule a technical deep-dive session with the vendor's proposed project team.
- Week 4: Contract Negotiation & Onboarding. Finalize the statement of work (SOW), ensuring all milestones, deliverables, and acceptance criteria are clearly defined. Begin the project kick-off and onboarding process.
Ready to Mitigate Your AI Project Risk?
Download our full toolkit, including the interactive scorecards, risk planners, and RFP templates to get started.