Vital questions your company should ask your AI Provider!

Posted by Brian Porter on May 28, 2023

Vital questions your company should ask your AI Provider!

The potential of generative AI to streamline processes and create business value is undeniable. But as we embrace this powerful technology, it’s crucial to consider the potential data security and privacy implications.

Asking the right questions early in the process can help you assess potential risks and make informed decisions about AI service providers. Here are ten questions to ask, along with some potential red flags to look out for:

Data Security and Privacy

Question: Is the AI service provider compliant with GDPR and other applicable data protection and privacy regulations? What mechanisms do they have in place to protect data during transmission and at rest?

What to look for: You’ll want to see evidence of robust data protection measures, such as data encryption and secure data transfer methods. Compliance with relevant regulations and standards is non-negotiable.

Data Usage

Question: Will the AI service provider have access to our data? If so, how will this access be controlled? Will our data be used to train or improve the provider’s AI models?

What to look for: Clear policies about how your data will be used and controlled are crucial. Beware of providers who might use your data to train models that could be used by competitors, which might lead to leakage of your company’s proprietary knowledge.

Data De-identification

Question: How does the provider ensure that data used to train or improve AI models is properly de-identified or anonymized?

What to look for: The provider should have robust procedures for de-identifying data, reducing the risk of data being re-identified later. If a provider can’t assure you of this, it could pose a significant risk.


Bias and Fairness

Question: What measures does the provider take to ensure that the AI models are fair and do not exhibit or perpetuate bias?

What to look for: The provider should be transparent about their methods for preventing and detecting bias in their models. AI models that are biased can lead to unfair outcomes and potential legal issues.

Transparency and Explainability

Question: How transparent is the AI model’s decision-making process? Can the provider offer insights into how the model makes decisions or predictions?

What to look for: Transparency and explainability are essential for trust and accountability. Providers should be able to explain in understandable terms how their models work.


Question: Who is responsible if the AI service makes a decision that leads to harm or violates laws or regulations?

What to look for: The provider should be clear about accountability. If they avoid taking responsibility for their model’s decisions, that’s a red flag.

Review and Auditing

Question: Can the provider’s data handling and AI practices be audited? Does the provider have mechanisms in place for regular review and improvement of its AI practices?

What to look for: You’ll want a provider who is open to external audits and has a commitment to continual improvement.

Exit Strategy

Question: If the contract with the AI service provider ends or if the provider goes out of business, how will our data be handled? Can we easily retrieve or delete our data?

What to look for: Ensure there is a clear exit strategy that includes retrieving or securely deleting your data.

Training Data

Question: Is the data used to train the AI model ethically sourced and free of copyright restrictions?

What to look for: The provider should be able to confirm that they have the necessary rights to use the training data and that it was obtained ethically.

Quality Assurance

Question: How does the provider ensure the accuracy and reliability of the AI model?

What to look for: Look for providers with robust quality assurance processes that include regular testing and validation of their models.


By asking these questions and understanding what to look for in the answers, you’ll be well equipped to navigate the complex landscape of generative AI integration with data security and privacy in mind. Remember, a good AI provider should be able to answer these questions to your satisfaction, demonstrating their commitment to data security, privacy, and overall ethical AI practices.

Let me know if I am missing any essential questions!

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