You are on a discovery call with a potential AI agency. They have a slick presentation and are using all the right buzzwords—”agentic,” “proprietary models,” “transformation.” But as a business leader, you have a pit in your stomach. How do you, a marketing or operations expert, vet a team of highly technical engineers? How do you know if they are a real partner or a “fake” agency just re-selling a cheap tool?
I have been in these calls, and I have seen leaders get duped by a good sales pitch. As I explained in my main guide, How to Hire an AI Agency in 2026, your most important job is to filter out the frauds.
This is your practical checklist. These are the 15 questions to ask an AI agency before you sign a contract. Their answers will tell you everything you need to know.
Category 1: Questions About Their Business Model (To Expose Frauds)
- “Are you an ‘AI-Assisted’ agency or an ‘AI-First’ agency?”
- This is the litmus test. An “assisted” agency secretly uses tools to do their old, hourly work faster. An “AI-First” agency will proudly explain that their product is building automated systems. This one question reveals their entire business philosophy.
- “What is your pricing model?”
- Bad Answer: “We charge by the hour” or “a simple monthly retainer.” This is a red flag they are still selling time.
- Good Answer: “We use a hybrid, value-based model. We charge a one-time project fee to build the automation, and then an ongoing retainer for maintenance, monitoring, and support.”
- “Can you show me a case study of a system you built, not just content you wrote?”
- You are not hiring a writer; you are hiring an engineer. Do not let them show you a blog post. Ask to see a workflow, an automation, a custom chatbot, or a data analysis system they built and the measurable business outcome it achieved.
Category 2: Questions About Their Tech & Process (To Verify Their Skills)
- “Do you build custom models, or do you primarily use pre-trained APIs?”
- There is no wrong answer, but it exposes their capabilities. “We use APIs” (like from OpenAI, Anthropic, etc.) is fine for most business tasks. If they say “we build custom models,” your next question must be, “Why is that necessary for this project?”
- “What is your approach to RAG vs. Fine-Tuning for this project?”
- This is the ultimate how to vet an AI consultant question. It proves you have done your homework. They should be able to instantly explain why your specific problem is better solved with RAG (giving the AI knowledge) or fine-tuning (giving the AI a skill). If they do not know the difference, they are not experts.
- “What does your development process look like from discovery to deployment?”
- They should describe a clear, multi-step process: 1) Discovery & ROI Planning, 2) Data Preparation, 3) Prototyping/MVP, 4) Iterative Testing & Feedback, 5) Deployment, and 6) Post-Launch Support. A fake agency will just say, “We start writing prompts.”
- “What is your ‘Human-in-the-Loop’ (HITL) workflow?”
- You are looking for an agency that brags about its human oversight. Ask them, “At what specific points in this process does an expert human review and validate the AI’s output?” This shows they value accuracy over 100% automation.
Category 3: Questions About Data & Security (The Deal-Breakers)
- “What is your exact data privacy and data retention policy?”
- This is the most important question. A vague answer is a 100% deal-breaker. They should be able to instantly tell you their policy.
- “Will my proprietary data be used to train any third-party models?”
- The only acceptable answer is “No.” A professional agency will confirm they use a “Zero Data Retention” (ZDR) policy with their API vendors, meaning your data is deleted immediately after the task and is never used for training.
- “How do you ensure you are compliant with GDPR, HIPAA, or other regulations?”
- This is not a “yes/no” question. They should be able to describe their specific protocols, like data anonymization, on-premise hosting options, or using HIPAA-compliant cloud vendors.
- “Who on your team is our ‘Data Protection Officer’ or security lead?”
- This question tests their accountability. A real firm will have a specific person responsible for security and compliance, not just a vague “the team handles it” answer.
Category 4: Questions About ROI & Partnership (The Business Alignment)
- “How will you measure the ROI of this project?”
- This question separates the “tool users” from the “business partners.” A good agency will respond by asking you questions: “What is your current cost per-task?” “How many hours a month does your team spend on this?” They will define success in terms of your metrics (e.g., “cost-per-lead,” “time saved,” “reduction in errors”).
- “What does your post-launch support and maintenance plan look like?”
- AI models are not “set-it-and-forget-it.” They drift. A real partner will have a clear, retainer-based plan for monitoring performance, re-training the model, and optimizing prompts over time.
- “What are the hidden or ongoing costs?”
- A transparent partner will be upfront about this. Ask about API/token costs, data hosting fees, and monthly support retainers. An agency that only quotes a one-time fee is hiding the real TCO (Total Cost of Ownership).
- “Why did your last AI project fail?”
- This is my favorite “curveball” question. If they say, “We have never had a project fail,” they are lying. A real expert will be honest: “Our last project failed to meet expectations because the client’s data quality was poor, which is why we now have a mandatory data-cleaning phase in every project.” This shows honesty, experience, and a process built from failure.
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About the Author
I’m Sanwal Zia, an SEO strategist with more than six years of experience helping businesses grow through smart and practical search strategies. I created Optimize With Sanwal to share honest insights, tool breakdowns, and real guidance for anyone looking to improve their digital presence. You can connect with me on YouTube, LinkedIn , Facebook, Instagram , or visit my website to explore more of my work.
