AI Proof of Concept Development

An AI proof of concept for a decision, not a demo.

Bring one claim about quality, data, latency, cost, integration, or human review. We agree what passing means before tuning begins, test the smallest credible approaches on representative examples, and hand over the evidence for a go, narrow, change, or stop decision.

See our work

Bring one expensive assumption. Leave knowing what an honest proof would need to test.

The brief

Start with what is not working.

Good software decisions begin with the constraint, not a list of features or a preferred technology.

01

A convincing demonstration works on prepared examples, but nobody has tested the awkward cases from the real queue.

02

Leadership wants evidence before approving production, but the team has not agreed what success or acceptable failure means.

03

A prototype exists, yet its data, evaluation, reviewer effort, integration limits, and cost at real volume remain unknown.

Plain answer

An AI proof of concept tests whether one selected AI approach can meet an agreed threshold on representative data before a production investment is approved. It measures task quality, important failure cases, latency, unit cost, human-review effort, and integration constraints. Every RaftLabs project starts at $9,500.

What to remember

  • A PoC should test one consequential uncertainty, not build a small version of the entire product.
  • The success threshold, trade-offs, and holdout examples should be agreed before the final evaluation.
  • A no-go result is useful when it prevents a larger investment or exposes a narrower path that can work.

A demo can impress everyone and prove almost nothing.

Five clean examples can return five clean answers. That shows the interaction is possible. It does not show whether the approach will survive older documents, incomplete fields, conflicting sources, unusual wording, weak images, new customer behaviour, or the mistakes that cost the business most.

Consider a team testing whether AI can extract information from incoming documents. An overall score of 92% sounds promising. The number becomes less useful if totals are almost always right but customer identifiers fail often enough to send records to the wrong account. The business may tolerate a missing optional note and reject a single incorrect payment value. Both errors count equally inside a simple accuracy average, but they do not carry the same cost.

A useful PoC fixes those distinctions before tuning begins. It groups representative cases, defines the errors that require review or rejection, preserves an unseen holdout, and measures the smallest credible approaches. The result can be a go, a narrower human-assisted workflow, a different approach, or a stop. That decision is the product of the PoC.

Test design

A decision-grade PoC changes what gets measured.

A polished prototype optimises for belief. An honest proof optimises for a decision another team can inspect.

Convincing demonstration
  • Prepared examplesThe clean cases used during development make the result look more dependable than the real queue.
  • Success defined afterwardsThe most flattering metric becomes the headline after the team has seen the result.
  • One average scoreImportant false accepts, refusals, edge cases, and affected groups disappear inside an overall percentage.
  • Prototype-only economicsA few model calls look cheap while retries, review, integration, monitoring, and support remain uncounted.
Decision-grade proof
  • Representative case groupsNormal, difficult, costly, incomplete, and prohibited cases are identified before the final test.
  • Threshold fixed firstThe measure, minimum result, trade-offs, and decision rule are agreed before evaluation.
  • Failures remain visibleResults show where the approach works, where it needs review, and where it must refuse or stop.
  • Production estimateObserved usage, latency, reviewer effort, and integration findings are translated into plausible operating cost.

Fit

A PoC needs one testable uncertainty and someone prepared to act on it.

The starting point is a selected use case, access to representative evidence, and a decision rule agreed before the result is visible.

A fit
01

The use case is selected, but quality, data readiness, latency, cost, reviewer effort, or integration feasibility is still uncertain.

02

Representative examples and the people authorised to judge disputed results can be made available.

03

A sponsor can approve, narrow, change, or stop the production investment based on the recorded evidence.

Not a fit
01

The team still needs to choose among several AI opportunities; start with AI consulting.

02

The main uncertainty is whether customers want the product; use an MVP or controlled pilot.

03

The expected result is a fully integrated, hardened, supported production system on a PoC scope.

If there is no decision the evidence can change, the team does not need a PoC yet. It needs a clearer question.

Demo, prototype, PoC, or pilot?

ArtefactPrimary questionEvidenceUseful next decision
DemoCan we communicate the possible experience?Selected or prepared examplesIs the idea worth exploring?
PrototypeHow might the experience or technical approach work?Interactive flow or experimental implementationWhat should we test or design next?
AI proof of conceptCan one approach clear a defined threshold?Representative set, holdout, measurements, and failure recordGo, narrow, change, repeat, or stop
PilotWill a controlled real-world group use and operate it successfully?Live workflow, adoption, reliability, support, and outcome evidenceExpand, revise, pause, or retire

Proof questions

Different AI ideas need different evidence.

The PoC is shaped around the claim that could break the business case, not around a fashionable model category.

  • 01

    Can it answer from approved sources?

    Test whether a retrieval or generative system finds the right material, cites it, refuses unsupported questions, respects permissions, and still responds within the required time and cost.
  • 02

    Can it read the documents people actually send?

    Measure classification and field extraction across real layouts, scans, handwriting, missing pages, ambiguous values, languages, and the errors that require human review.
  • 03

    Can it predict or rank better than the current method?

    Compare the model with the existing baseline using an honest time split or holdout, useful business thresholds, relevant groups, and the false-positive or false-negative trade-off.
  • 04

    Can it handle a real conversation?

    Test understanding, response quality, interruption, latency, accents, silence, escalation, prohibited requests, and whether a person can recover the interaction when the system loses context.
  • 05

    Can an agent complete a controlled task?

    Measure the full sequence of tool choices and actions, not only the final message. Include permissions, duplicate actions, confirmation, refusal, rollback, and what happens when a connected system fails.
  • 06

    Can the economics survive real usage?

    Observe model calls, retrieval, retries, storage, latency, reviewer time, and integration effort, then estimate cost per completed useful result at expected and peak volume.

How much data is enough for an AI proof of concept?

There is no honest universal number. A receipt-extraction test with four stable layouts asks a different sampling question from a support assistant that must search thousands of changing documents. A prediction model for a rare event needs a different evaluation from a voice agent handling common appointment calls.

Start by listing the input families that could change the result. For documents, that may include layout, image quality, language, missing pages, handwritten fields, and older formats. For retrieval, it may include source type, permission level, conflicting guidance, date, and questions the system should refuse. For prediction, it may include time periods, relevant user or customer groups, rare outcomes, and shifts between training and future use.

The evaluation set should contain enough examples from each important group to expose material failure patterns. It should also preserve a final holdout that is not used to adjust prompts, rules, or models. If the sample is too small to estimate a claim, the handover should say so plainly and limit the decision to what the evidence can support.

How it works

Fix the test before building the proof.

Each phase removes one way a PoC can mislead the production decision. The final readout keeps the result, its limits, and the remaining work visible together.

  1. 01
    Define

    Fix the proof question

    Which uncertain claim could change the investment decision?

    Follow the current workflow and separate what is already known from what is assumed. Translate the broad request into one question that a bounded experiment can answer.

    Decision produced

    One user, task, current baseline, expensive uncertainty, primary measure, trade-offs, prohibited outcomes, and a go or no-go rule.

    Risk closed

    Building a small product that demonstrates many features while proving none of the assumptions holding the business case together.
  2. 02
    Prepare

    Build an honest evaluation set

    Does the test represent the work the system will actually receive?

    Review representative examples with the people who understand the work. Include the incomplete, ambiguous, rare, costly, and prohibited cases before choosing the final approach.

    Decision produced

    A data record covering rights, sources, case groups, labels or rubrics, known gaps, tuning examples, and a protected final holdout.

    Risk closed

    Optimising for the clean or familiar cases until the PoC passes a test that production will never resemble.
  3. 03
    Test

    Prototype and measure

    Which smallest credible approach clears the agreed threshold, and where does it fail?

    Compare only the approaches needed to resolve the decision. Record model, prompt, rule, data, and configuration changes so the result can be repeated and challenged.

    Decision produced

    Reproducible results for quality, case groups, failures, latency, unit cost, reviewer effort, and any integration condition material to the choice.

    Risk closed

    Reporting one flattering average while important failure types, manual recovery, and operating cost remain invisible.
  4. 04
    Decide

    Make the production call

    What does the evidence justify funding next?

    Review the evidence with the sponsor, subject-matter reviewer, and technical owner. Keep what remains unproved next to the recommendation instead of hiding it in an appendix.

    Decision produced

    A go, narrow, change, repeat, or stop recommendation with limitations, transferable assets, production gaps, architecture direction, budget range, and the next decision gate.

    Risk closed

    Calling the prototype production-ready or treating a technical pass as proof that users, security, operations, and economics are already solved.

Test integrity

Four mistakes can turn a PoC into a sales demonstration

A moving threshold
Agree the measure, target, tolerance, and allowed trade-offs before the final evaluation. Do not redefine success after seeing which metric looks strongest.
Clean-sample bias
Include incomplete, ambiguous, older, rare, prohibited, and operationally expensive cases instead of testing only examples that already worked during development.
Data leakage
Keep tuning examples separate from the final holdout and record changes. Repeatedly adjusting the approach against the holdout makes it part of development data.
Prototype economics
Estimate production traffic, retries, infrastructure, human review, monitoring, support, and integration. A low-cost experiment does not guarantee a viable service.

What the handover should make inspectable

A production team should be able to understand the result without depending on a confident presentation or repeating the experiment from memory.

  • 01

    The test can be reproduced

    The handover records data versions, models, prompts, settings, rules, code, environment, and the exact evaluation procedure used for the final result.
  • 02

    The failures have names

    Results are grouped into useful failure classes with examples, frequency, business consequence, and the proposed response: accept, review, refuse, retry, or stop.
  • 03

    The result stays inside its evidence

    A score from one sample, language, location, time period, or workflow is not presented as proof for populations and conditions that were never tested.
  • 04

    Production gaps remain visible

    Permissions, security, monitoring, integration, migration, user experience, support, compliance review, scale, and operating ownership are listed even when they sit outside the PoC.

Every project starts at $9,500.

The first paid phase is bounded around one proof question. It includes the evidence needed to answer that question, not a disguised production build or an open-ended experiment.

The 30-minute call comes first and costs nothing. If the use case is not selected, consulting may come first. If the evidence is already sufficient, the next move may be a controlled production phase rather than another prototype.

What the first phase can be

  1. 01

    Quality and failure proof

    Test whether extraction, classification, retrieval, generation, prediction, voice, or agent behaviour clears the threshold on representative cases.

  2. 02

    Data feasibility proof

    Measure whether available sources, rights, labels, coverage, history, and quality can support the selected task and an honest evaluation.

  3. 03

    Integration and workflow proof

    Test the uncertain data path, permission boundary, tool action, latency, write-back, or failure condition without building the whole product.

  4. 04

    Existing prototype audit

    Re-evaluate a vendor, internal, or AI-built prototype against a fixed holdout, failure taxonomy, reviewer effort, and production economics.

The evidence decides the scope. Before work begins, you will know what is being tested, which result changes the decision, what remains outside the proof, and what would justify production investment.

Starting investment

$9,500

Minimum project scope. The proof question, data access, evaluation, deliverables, acceptance criteria, ownership, exclusions, price, and timing are written down before the phase starts.

The threshold comes first

The primary measure, minimum result, important trade-offs, and decision rule are recorded before the final evaluation.

No-go is an acceptable result

The handover preserves what was learned and explains why stopping, narrowing, or changing the approach is justified.

Client-controlled assets

Project-specific code, data, evaluation material, and provider access remain under client control where rights and security allow.

Common questions

An AI proof of concept is a bounded technical experiment that tests whether one selected AI approach can solve a specific task under representative conditions. It begins with a current baseline, success threshold, trade-offs, and decision owner. It ends with measured results, failure cases, limitations, operating implications, and a go, narrow, change, or stop recommendation.

It should validate the uncertainty that could change the investment decision. That may be output quality, data readiness, retrieval coverage, prediction performance, action reliability, latency, unit cost, human-review effort, or integration feasibility. The PoC should also expose where the approach fails and what production would still require. It should not attempt to prove every feature at once.

A demo communicates a possible interaction, often with selected examples. A prototype explores how the experience or technical approach might work. A proof of concept measures one uncertain claim. A pilot runs a more complete solution with a controlled real-world group or workload. An MVP is a usable product released to test customer or operating value. Teams can combine artefacts, but the decision each one supports should remain explicit.

Run a PoC when one uncertain assumption could make the larger build unwise. Common examples include unknown quality on your documents, unreliable answers from your knowledge base, uncertain prediction lift, unacceptable reviewer effort, or model cost that may not work at expected volume. Start development when the core evidence is already credible and the remaining work is integration, product behaviour, controls, and operation.

Start with AI consulting when the organisation still needs to choose among several use cases, compare build and buy paths, assess broad readiness, or agree where AI belongs. Start with a PoC when one use case is selected and a testable technical or economic question remains. Consulting chooses the investment; a PoC measures the riskiest assumption inside it.

You need examples that represent the task, difficult cases that could change the decision, permission to use the data, context for the correct outcome, and people who can judge disputed results. The amount varies by task and variation. The first step checks missingness, coverage, leakage, privacy, time drift, relevant groups, and whether a separate holdout can support an honest final evaluation.

There is no universal sample size. A narrow extraction task with a few stable layouts may need fewer examples than a prediction problem with many outcomes or a retrieval system covering thousands of documents. The useful question is whether the set represents the important input families and can estimate the errors that matter. We document the sample, its limits, and which claims it cannot support.

Begin with the current method and the cost of different mistakes. Then define the primary task measure, acceptable false positives and false negatives, review threshold, prohibited outcomes, latency, cost per useful result, and any minimum coverage. Agree which trade-offs are allowed before the final test. A single accuracy percentage can hide the failure that makes the workflow unusable.

Separate examples used for exploration and tuning from a final holdout that remains unseen until the approach is fixed. Record data versions, prompts, models, settings, rules, and changes. Group results by meaningful input types instead of reporting only an overall average. If the holdout is used repeatedly for tuning, it is no longer an honest independent check.

A no-go can be a successful outcome when it prevents a larger investment. The decision record explains whether the gap came from data, task definition, model capability, workflow design, reviewer burden, integration, or economics. It can recommend a narrower task, a human-assisted path, another approach, more evidence, ordinary automation, or stopping. The threshold is not rewritten after the result arrives.

Measure model or inference usage, retries, retrieval, storage, infrastructure, latency, and reviewer time during the experiment. Then model them against plausible volume, peak demand, provider pricing, monitoring, support, and failure recovery. The estimate should be expressed per completed useful result as well as a monthly range. A cheap demonstration can still imply an expensive production service.

Yes. The PoC can use a representative export, approved test environment, sandbox API, or a thin integration when that is enough to test the uncertain claim. If the decision depends on live permissions, latency, write-back, concurrency, or failure behaviour, those boundaries need a more realistic connection. Production migration, complete security hardening, broad user roles, and operational support remain separate unless explicitly included.

A focused AI PoC often takes four to eight weeks after usable data and reviewers are available. Timing moves with data access, labelling, the number of approaches compared, domain-expert availability, evaluation complexity, hardware or live-system dependencies, and formal security or risk review. The schedule, activities, evidence, dependencies, and decision date are agreed before the phase starts.

Every RaftLabs project starts at $9,500. A bounded first phase can cover one proof question, representative data review, an evaluation set, the smallest credible prototype, measurement, failure analysis, and a decision record. Price increases when the test needs extensive labelling, several model families, specialist hardware, complex data access, live integration, or regulated evidence. Scope and price are written down first.

You should receive the proof question, baseline, data and sampling record, evaluation method, thresholds, tested approaches, results by meaningful case group, failure taxonomy, latency and cost evidence, limitations, experiment assets where rights allow, and a production recommendation. The handover should also name what remains unproved, what production would require, and the condition for approving another phase.

The client owns project-specific code, prompts, configurations, evaluation artefacts, and agreed project IP, and controls its data and provider accounts where practical. Third-party models, services, datasets, and open-source components retain their own licence and service terms. Any data or asset that cannot be transferred because of rights or security constraints is identified before the phase starts.

Work with us

Bring one AI claim that needs an honest test.

In a 30-minute call, we will help you turn the claim into a proof question, identify the evidence it needs, and tell you whether a PoC is the right next step.

  • The selected user, task, and current way the result is produced.
  • Representative examples, including the incomplete or unusual cases demos avoid.
  • The quality, cost, speed, review, or integration claim that remains uncertain.
  • One owner prepared to proceed, narrow, change, or stop when the evidence arrives.