Evaluating AI tools in Albany requires a plan for the work, information and responsibilities behind the demonstration. Before signing a contract, a business needs to understand what it proposes to buy and what it will have to manage.

This planning guide turns that investigation into a sequence of questions. It does not endorse a vendor, interpret a particular contract or establish that an AI service is appropriate for sensitive or specialised work.

Define the proposed task and its boundaries

Start with one task and the person responsible for it. Describe the input, intended output and decision that follows.

Ask which parts require human judgement and which activities are outside the proposal. Drafting a routine document is different from deciding what the business should promise a customer.

Prepare a short task description before speaking with vendors. That record gives you something stable against which to assess changing descriptions of the product.

Identify the information the task would involve

List the categories of information the service would receive or access. Ask whether the proposed task can be tested without real personal, confidential or commercially sensitive material.

The ASD’s AI guidance for small businesses discusses considerations including use policies, providers and human oversight. Use that perspective to investigate the actual arrangement.

Ask what information is retained, how it is used and which settings or agreement terms affect that use. Do not assume every AI provider treats inputs in the same way.

Investigate privacy obligations and appropriate advice

Consider whether the proposed information use requires advice about the business’s obligations. Avoid treating a general vendor statement as a personal compliance assessment.

The OAIC’s guidance on commercially available AI products is relevant to organisations considering privacy in these arrangements. Its discussion should be read within its actual scope.

Prepare the questions an appropriate adviser would need to assess. A label such as anonymised should not end the investigation without understanding what information and process it describes.

Set a test that answers the business question

Define a limited evaluation using suitable material and a task the business understands. Decide what would count as an acceptable draft and what errors would matter.

Ask the vendor which features and service conditions the demonstration uses. A trial involving different capabilities may not represent the package being quoted.

Keep the results and the review effort together. Producing an output quickly does not establish a saving if checking and correcting it requires work the proposal has not considered.

Include a situation that is awkward for the current process, not only a polished example selected for presentation. Explain what the test material is intended to reveal and keep its limitations visible. A small evaluation can help identify questions, but it should not be described as proof that the service will perform reliably in every circumstance the business might encounter.

Assign human review and approval

Identify who would check the output before it is relied on or shared. The reviewer needs the relevant knowledge and authority for the actual content.

Ask how the service supports corrections and how staff would identify which version was approved. Keep generated suggestions distinguishable from verified business information.

Write down the situations in which the tool should not be used or the work should be escalated. An impressive demonstration should not silently expand the tool into decisions beyond the agreed task.

Examine the contract and the full commitment

Ask about the exact service, users, usage limits, support, initial work and recurring charges. Identify what happens if the business needs additional features or exceeds the quoted allowance.

Business.gov.au’s contract preparation guidance provides issues to consider when describing responsibilities and arrangements. Obtain appropriate advice about terms that need legal interpretation.

Record questions about information use, deliverables and continuing responsibilities alongside the commercial terms. Do not assume a familiar subscription format makes the whole agreement straightforward.

Plan for changes and an eventual exit

Ask how the business would learn about significant service changes and review whether the tool still meets its needs. A decision based on one demonstrated capability should remain traceable.

Investigate how authorised access would end, what usable information could be obtained and what assistance or charges might apply. Keep contractual answers separate from an untested technical migration assumption.

Consider how the task would continue without the service. An exit plan should describe the practical work involved rather than simply naming another product.

Prepare a decision record before signing

Bring the investigation together:

  • The task and the limits of proposed use.
  • The information and obligations requiring attention.
  • The test results and human review effort.
  • The actual package, charges and responsibilities.
  • The change and exit arrangements.
  • The unresolved questions and required advice.

Make the decision when essential questions have an adequate answer. For an Albany business, a useful AI evaluation connects the contract with the work people will actually do, rather than relying on the promise of automation alone.

By