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AI readiness · 12 min read

10 things you must know before working with AI

Successful AI work begins before the model call. These ten decisions determine whether a project becomes useful infrastructure or an expensive demonstration.

A team conducting a practical AI readiness review

Short answer

10 things you must know before working with AI

Successful AI work begins before the model call. These ten decisions determine whether a project becomes useful infrastructure or an expensive demonstration.

1. Define the decision or outcome

“Add AI” is not a requirement. Name the person, the decision or task, the current cost, and the acceptable outcome. A narrow workflow with a measurable result is easier to evaluate than a general assistant expected to know everything.

2. Choose the tool after the problem

Different tasks need different interfaces, models, retrieval systems, or deterministic software. Classification may need a small model; a high-stakes workflow may need structured rules and human approval. Do not pay for maximum capability when consistency is the real requirement.

3. Classify your data

Know whether prompts may contain personal, confidential, regulated, copyrighted, or customer-owned information. Review provider retention and training terms, minimize what you send, and keep secrets out of prompts. Data governance applies even when the interface feels conversational.

4. Expect plausible errors

Models can produce fluent statements that are unsupported or wrong. Design for that reality with retrieval from trusted sources, citations, validation rules, confidence thresholds, and escalation. Never confuse polished language with verified truth.

A team reviewing privacy, security, and quality risks
Risk review works best before sensitive data or customer workflows enter the system.

5. Put human review where consequences live

Human review is not a decorative approval button. The reviewer needs the source context, authority to reject, and enough time to notice a problem. Increase oversight when output affects health, employment, benefits, safety, legal rights, or significant money.

6. Treat prompts and tools as a security boundary

An AI system that reads external content or calls tools can be manipulated through prompt injection. Limit permissions, isolate untrusted content, validate tool arguments, require confirmation for consequential actions, and log what happened. Follow the principle of least privilege.

7. Build an evaluation before scaling

Create representative test cases, expected characteristics, unacceptable failures, and a scoring process. Include ordinary cases, edge cases, adversarial inputs, and examples from real users. Re-run evaluations when prompts, models, data, or tools change.

8. Model the full cost

Token cost is only one line item. Include retrieval, storage, observability, retries, human review, support, evaluation, and engineering maintenance. Set usage limits and track cost per successful outcome rather than cost per request alone.

A structured AI evaluation with test cases and scorecards
A small, representative evaluation set is more useful than judging a demo by intuition.

9. Decide what you need to own

Document who controls prompts, evaluations, source code, customer data, embeddings, domain, model accounts, and workflow history. Use portable formats and clear export paths where continuity matters. A provider can be replaceable only if your essential knowledge is not trapped inside it.

10. Plan for continuous maintenance

AI behavior can shift when models, policies, source data, or user behavior change. Assign an owner, monitor failures, gather feedback, review access, update evaluations, and maintain a fallback. Launch begins the operating phase; it does not end the project.

The pre-project checkpoint

Before funding a build, require a one-page brief covering the outcome, users, data classification, risk level, evaluation, human review, permissions, cost ceiling, ownership, and operating owner. If the team cannot answer those questions, the next step is discovery—not development.

Quick answers

Frequently asked questions

What should we know about define the decision or outcome?

“Add AI” is not a requirement. Name the person, the decision or task, the current cost, and the acceptable outcome. A narrow workflow with a measurable result is easier to evaluate than a general assistant expected to know everything.

What should we know about choose the tool after the problem?

Different tasks need different interfaces, models, retrieval systems, or deterministic software. Classification may need a small model; a high-stakes workflow may need structured rules and human approval. Do not pay for maximum capability when consistency is the real requirement.

What should we know about classify your data?

Know whether prompts may contain personal, confidential, regulated, copyrighted, or customer-owned information. Review provider retention and training terms, minimize what you send, and keep secrets out of prompts. Data governance applies even when the interface feels conversational.

What should we know about expect plausible errors?

Models can produce fluent statements that are unsupported or wrong. Design for that reality with retrieval from trusted sources, citations, validation rules, confidence thresholds, and escalation. Never confuse polished language with verified truth.

Sources and further reading