In this post, I’ll show you a simple and straightforward process for how you choose an AI software.

I probably don’t need to tell you that AI is like gasoline on a digital fire. It’s rapidly evolving and businesses are turning to it to drive innovation ,boost efficiency, and gain a competitive edge.

But how do you get on this booming train, what AI tools should you use.

Tricky question since there are tons of AI tools out there, from writing to accounting. Therefore choosing the right one can be a daunting task.

However, by following a structured approach and considering key factors, you too can choose the AI software that aligns perfectly with your business (or personal) goals.

So today, we’ll go through every step you need to take when you’re choosing an AI software for the first time. From what to look for and research to evaluation and final decision, everything will be covered and more.

Let’s dive in…

How to choose the best AI software for your needs

Like I said in the intro there are tons of AI tools on the market today. And more are popping up every day.

For some this will lead to an unpleasant sensation of not knowing where to start at all. Leading to you not even trying to find something good.

But with the right approach, it can be a manageable and dare I say fun process. And by using a step-by-step process for selecting the best AI software for your business, if becomes easy.

Plus, you get to make a list of tools, and who doesn’t love a good list.

So, AI or not, here’s the strategy I use when I choose software for my business.

1. Assess your goals and your business needs

Before diving into the world of AI software, it’s essential that you clearly define your goals and your business needs.

Are you looking to automate manual processes, improve customer service, or gain insights from data?

Whatever it might be, you need to start somewhere…

So, begin by identifying the specific areas in your business where AI can provide the most value.

Be specific and consider the specific challenges or tasks you want to solve.

To put it simply, look for pain-point and places where you feel stuck. These are the places where AI can help the most.

By knowing your goals, you can narrow down your search to AI tools that are tailored to your industry and needs.

Oh, and before I forget, write down these goals on a list, this way you get to cross things off as you complete them. Practical and it helps you to stay on track even in the toughest of times.

2. Research available AI tools

Once you have a clear idea of your business needs, it’s time to explore the market and research the available AI tools.

Now it’s time to create a new list of all the AI software providers that suit your needs.

If you want a little help finding all these AI tools, head over to this guide and scroll down a bit. There’s a list of tons of the best AI tools for unique needs.

But, if you skip that, here’s what you need to do.

Google your needs and then add “AI software” at the end.

Then, conduct thorough research on each option, comparing things like:

• Features
• Pricing
• Support
• Up-time
• Etc…

This will help you sort through the vast majority of the tools out there.

And when you find a tool you like, add it to your list.

3. Evaluate the tool’s capabilities

With your shortlist in hand, it’s time to sort out the best ones from the good ones. This way, you’ll know that you’ll choose the best AI software possible (for your needs).

When evaluating each AI software, examine the tool’s capabilities in detail.

Look for factors such as:

• Accuracy
• Performance
• Flexibility
• Customization options

Also, consider how well each solution aligns with your business needs and priorities. Look for specific features that set them apart and can address your unique requirements.

Because sometimes it can be worth it to spend a bit more to get a few features that will make your life easier.

And a tool that has unique features and can be customized to your liking will allow you to tailor it to your specific needs effectively.

Additionally, consider the tool’s user-friendliness, as ease of use is crucial for successful implementation.

4. Determining your budget for AI software

You know, just as well as I do, that a bank account isn’t infinite…not yet.

And budgeting is typically one of those things that have a big impact when it comes to choosing a software for your business.

Even if a tool has all the cool bells and whistles, it doesn’t matter if you can’t afford it.

If you only can afford to set aside $50/month for a new tool, don’t go looking in the $100 price range.

It’s like browsing Ferraris when you only can afford a Toyota.

And it’s not worth going bankrupt for the sake of a tool, since without a business you can’t use it anyway.

So, while AI software offers significant benefits, it’s essential to consider your bank account as well. Decide how much you are willing to invest in AI software and look for options that provide the best value for your money.

This way you can sleep well knowing that you’ll only choose AI software that you can afford.

5. Consider models used

AI tools rely heavily on data for training and operation. This training results in something we call models that the AI can use as a knowledge bank.

You’ve probably heard of GPT-3, GPT-4, Claude 2, Gemini, etc. These are all large multimodal models that can solve problems with great accuracy.

Assess whether the tool you like utilizes one or more of the latest models. Personally, I’d rule out anything less than GPT-3.5.

The reason why this is so important is that with the newer models you get better understanding, reasoning, speed and accuracy. All of which are important factors for using AI software efficiently.

6. Assess security and privacy

When you choose AI software, you need to know that you’ll be sharing data with the vendor.

And chances are that the vendor will use your results from the AI to train it further, making it even better. This is almost always the case, and why not help the vendor to make the platform better.

It’s a win for you too.

This all sounds good, but it also forces you to consider data security and privacy when selecting an AI tool.

Meaning that you need to evaluate the tool’s data handling practices and encryption methods to protect sensitive data.

So, verify that the tool complies with local data protection laws, industry standards, and ethical guidelines. Ensuring the security and privacy of your data is crucial for maintaining customer trust and avoiding potential legal and reputational risks.

Honestly, I don’t think you’ll find any problem with this if you use reputable AI tools within your business. But have data security and privacy in mind when choosing.

7. Consider scalability and integration

When selecting AI software, consider how well it will integrate into your existing systems and whether it can scale with your business.

Because, first of all, it’s nice to have a tool that is easy to integrate with all your existing systems. You don’t want to end up having to buy even more tools just to get the first ones to talk to each other.

Evaluate the compatibility of the AI tool with your existing infrastructure and systems to ensure seamless integration and maximum efficiency.

Secondly, you want a tool you can grow with. For me this is very important since I tend to buy tools that I can use for years and that I can grow with.

Not only does this help you become an expert in the tools you use, it also saves you time having to learn new systems.

So, assess whether the tool can adapt to increasing or decreasing usage and changing business needs.

Choosing AI tools that’s flexible and scalable will future-proof your investment and support long-term success.

8. Read reviews and collect references

Okay, so you have your list of potential AI tools that might be a good fit for you. Maybe you’ve even crossed some off thanks to the earlier steps.

But before you choose any of the remaining AI tools as the best for your business, it’s one bit of research left to do.

You guessed it, it’s time to read some reviews.

So, to gain insights into the real-world performance of AI tools, read reviews, case studies, and references from other businesses that have used the tools you are considering.

Spend some quality time reading the reviews and testimonials from other users.

Assess their experiences, success stories, and any challenges they faced during implementation. This feedback can provide valuable insights into the tool’s usability, effectiveness, and overall satisfaction.

Also, consider seeking advice and guidance from experts or professionals in the field of AI. They can provide valuable insights and help you make an informed decision based on your business needs and industry-specific requirements.

9.Testing and comparing different AI software options

Now you’re only one step away from picking the AI tools that fits you the best.

The best thing is that this is the most fun part. Up until now, everything has been about reading and researching, but now it’s all about hands-on tests.

So, once you have narrowed down your options, it’s time to start playing and testing all the AI tools on your list.

Make good use of free trials and demo versions of the AI software on your shortlist. And even if there is no trial or demo available, get in contact with the vendor and see if they can help you out.

This hands-on experience will give you a better understanding of the software’s usability, performance, and compatibility with your business operations.

Because reading reviews can only get you so far. Actual real-life experience is the key to finding the gems that are of value to you.

This is also the time where you have to critically judge which tools are best, since some might be close calls.

10. Conduct a pilot test

The good thing about trials and demos is that they typically have a 14-day duration.

Just enough time to do a little pilot testing.

So, before making your final decision, conduct a pilot test or proof-of-concept project to assess the AI tool’s performance in a real-world environment.

You could call this the “bang-for-your-buck” pilot testing time.

Implement the tool on a small scale or in a specific department and evaluate its effectiveness, efficiency, and impact on your business processes.

During the pilot test, closely monitor the tool’s performance and gather as much data as possible.

This data will ultimately be the deciding factor when you choose your AI software. If the tool provides an equal or better result than you expected, it’s a winner.

11. Consider a customized solution

Okay, up until this point I’ve almost exclusively talked about choosing off-the-shelf solutions.

However, I just want to briefly mention that there is one another solution as well, a custom solution.

While off-the-shelf AI tools can be valuable, there may be cases where a customized solution is necessary to address your unique business challenges.

If your business requires a unique solution, work with a trusted AI partner who can design, build, and implement a customized tool optimized for your specific needs. They will work closely with you to understand your requirements and develop a solution tailored to your business.

Is this cheap…no…but it could be worth it under the right circumstances.

But there is another side to this coin.

If you have the experience and love a technical challenge, then you could develop your own custom application. It does take a lot of time and devotion, but it could be worth it if your needs are beyond off-the-shelf AI solutions.

12. Implementation and training

Once you have chosen the right AI software, it’s time to implement it into your business operations. If you executed step 10 then you should be well on your way to implementing your AI tool into your business

However, this doesn’t mean that you can skip ahead.

Even though you’re well on your way, you still need to develop a detailed implementation plan that outlines the necessary steps, timelines, and resources required for a smooth integration.

Also, don’t forget to educate yourself on your new tool. Training and learning centers provided by both YouTube, blogs, and the vendor itself is a goldmine for learning.

And if you have a team, make sure to provide them with comprehensive training and time to familiarize them with the tool’s functionalities.

Lastly, don’t be afraid to use the support buttons. I have to admit, I didn’t like using the support for a long time…you know, do everything yourself syndrome. However, when I swallowed my pride and started using it my growth shot through the roof.

13. Monitor and evaluate performance

After implementing the AI software, monitor its performance regularly to ensure it meets your expectations.

Establish key performance indicators (KPIs) to track its effectiveness and measure its impact on your business.

Continuously evaluate metrics such as productivity improvements, cost savings, accuracy rates, and customer satisfaction to gauge the tool’s effectiveness.

I actually have a guide on implementing AI into your business that covers this and more in detail. It’s something I suggest if you want to learn more about how to get the most out of your AI efforts.

14. Adapt and evolve

AI technology is constantly evolving, and it’s important to stay updated with the latest advancements in the field.

As your familiarity with the tool grows, explore additional features or integrations that can further enhance your business.

So, every once in a while, can the market for new AI tools or functionalities that can further increase your business potential.

What should you look for in an AI software?

Now that you know how to choose AI software, it’s time to answer the no.1 question…

What should you look for in an AI software, exactly?

Before you make up your mind, it’s crucial to understand and identify the key features and capabilities you should be looking for.

Here are the factors I believe you should consider:

Scalability and customization

As your business grows, your AI software should be able to scale alongside it.

Look for software that can handle increasing amounts of data and adapt to changing business needs. Additionally, consider the level of customization available.

The software should be flexible enough to integrate with your existing systems and workflows, while also allowing you to experiment with new things.

Ease of use

When you choose an AI software, the last thing you want is a complex mess that requires a PhD to use.

The AI tool you pick should not be overly complex or require extensive training to use. Sure, there is a learning curve for everything, but the entire experience shouldn’t be a learning curve.

Look for user-friendly interfaces and intuitive workflows that allow you to quickly adopt and utilize the software effectively.

Also, even though looking at videos or asking people how easy the software is to use, nothing beats hands-on experience.

Because what I find easy and simple, you might find incredibly difficult.

This is why you should use trials as a means of finding out how easy the tool is to use…for you.

Data security and privacy

When dealing with sensitive business data, it’s crucial to prioritize security and privacy. Ensure that the AI software you choose adheres to industry-standard security protocols and provides robust data protection measures.

This variable is very fluent since it depends on what you use the AI for.

For example, if you use it to write, the vendor will most likely use your good results to further enhance their AI.

Is this something to be concerned about, I don’t think so.

The most important thing you need to check is that whatever data you share on the platform is safe and not sold.

Integration capabilities

I’ll assume that if you’re running a business, you have a few tools that you love and even use on a daily basis.

They’re all integrated and work amazing together and now it’s time to add another tool to the mix.

Consider the software’s ability to integrate with your existing tools and systems. Seamless integration allows for a smoother workflow and maximizes the value of your AI software investment.

The last thing I want for you is to end up with something I call “integration hell”.

This special section in hell where you end up with bunch of tools that can’t speak to each other. Resulting in you having to buy even more tools to make the integration happen.

Support and training

You can’t know everything, especially if you haven’t tried it before.

I used to be pretty bad at writing blog posts, but now after a few hundreds published, I think I’m pretty good at it. What do you think?

The same thing goes for you mastering a new AI system. You will need some training and the occasional support chat.

So, evaluate the support and training options provided by the AI software you like.

Look for comprehensive documentation, online resources, and responsive customer support to ensure a smooth implementation and ongoing usage.

This is something that is very important to me, and almost all tools I use in my business today stayed because they had good support.

Choosing between free vs. paid AI software

One important consideration when you choose an AI software is whether to opt for free or paid solutions.

Because even though free solutions sound like the best thing since sliced bread, you might need to hold your horses for a bit.

You see, free AI software can be a viable option for businesses with limited budgets or those looking to experiment with AI technology.

However, keep in mind that free software may have limitations in terms of:

• Features
• Number of usage per day/words
• Support
• Scalability
• Integrations
• Access to updates
• etc…

Paid AI software, on the other hand, often offers more advanced features, dedicated support, and regular updates.

Personally, I prefer to use paid tools whenever I can. I know this sounds crazy when I’m also an advocate for starting businesses on the cheap. But when it comes to the tools I use to do it, I carefully plan which ones will give me the best bang-for-the-buck.

If I can pay for one tool to do the same thing as five free ones, I’m in.

But I want you to know that even though I pay for tools, I always try to find the ones that aren’t ridiculously expensive. Strategically planning my investments, means that I get tools I can grow with, while at the same time not draining my bank account.

Ultimately, it’s important to carefully evaluate the cost-benefit ratio and consider the long-term value that paid software can provide to your business.

Off-the-shelf vs. custom AI software

Okay, with all of the above in mind, how do you choose the right AI software for your business?

Notice that I said “right” AI solution, because there are tons of tools out there that can do an array of things.

At a quick glance, this might sound overwhelming, because how do you know what’s right?

Easy, if you’ve been following this guide you should have a pretty good understanding of what you need. So finding the tools shouldn’t be hard since you have a solid list of candidates.

However, what you need to do is to pick a technical side…

Because there are two main options to consider: off-the-shelf AI tools or custom-built solutions.

Let’s figure out which one is best for you.

Off-the-shelf AI tools

Off-the-shelf AI tools offer pre-built functionality and can be deployed quickly.

These tools are developed by AI vendors and typically provide a range of capabilities such as natural language processing, image recognition, or predictive analytics.

When selecting off-the-shelf AI tools, consider factors such as:

• The vendor’s reputation and track record in delivering AI solutions
• How many features do you get for your investment
• Level of customization and integration options available
• Can you scale your business with the tool
• Does the tool have good performance and a solid up-time record
• The availability of support and training resources
• And of course pricing

Off-the-shelf tools can be a cost-effective option for you who are looking to implement AI quickly and without extensive development resources.

However, they may have limitations in terms of customization and may not fully align with your specific business requirements.

Custom-built solutions

Custom-built AI solutions are tailored to your organization’s unique needs and objectives.

These solutions are developed in collaboration with AI engineers or data scientists who have expertise in building AI models and algorithms.

Or you could develop them yourself if you have that skill set.

The advantage of custom-built solutions is that they can be designed to address specific business challenges and integrate seamlessly with your existing systems. They offer greater flexibility and can be optimized for your unique data and needs.

When opting for a custom-built solution, consider the following:

• The expertise and experience of the AI engineer or data scientist
• Do you have the skills to develop it yourself (saves a few bucks)
• The development timeline and cost
• Is the solution scalable and can it be done within a reasonable time.
• Will there be early development performance issues, and can you deal with them
• Does it integrate with your business existing infrastructure
• Will maintenance cause unwanted down-time
• How does support look like, do you have time to do it yourself, or how much time does it take to get an engineer to help you

Custom-built solutions require more time and resources compared to off-the-shelf tools.

However, they offer the advantage of tailor-made functionality and can deliver significant value if implemented correctly.

Personally I prefer to choose off-the-shelf AI tools for my business, since they’re easy to integrate.

But having multiple tools can lead to integration madness. This is when you need to buy extra tools just so the first tools can talk to each other. This is not a fun place to be in and should be avoided at all costs.

In those unique situations I do believe that a custom solution could be worth the investment.

Conclusion

There you have it, the strategic step-by-step approach I use when I choose software for my business, whether it’s AI powered or not.

Thanks to this guide you have all the knowledge you need to make an informed decision in one place.

By following these steps and considering the unique needs of your business, you can confidently choose the right AI software that will:

• Drive innovation
• Boost efficiency
• Save money
• And help you reach your business goals faster.

Remember, the right AI tool is not always a one-size-fits-all solution, but with careful evaluation and implementation, it can be a powerful asset for your business’s success.

Now I’d like to hear from you:

Do you now feel confident that you can find the best AI software for your needs?

Let me know by leaving a comment below right now.