How to Choose an AI Consultant (And Red Flags to Avoid)

The AI consulting market is flooded with providers making big promises. Some deliver incredible value. Others waste your time and money. Here's how to tell the difference.

The Problem with the AI Consulting Market

Every consultant claims to be an "AI expert" now. The barrier to entry is low—anyone who's used ChatGPT a few times can hang a shingle.

This creates a real problem for business owners. You're trying to make a significant investment, but you don't have the technical expertise to evaluate whether someone actually knows what they're doing.

I've been on both sides of this equation. I've seen clients burned by consultants who overpromised and underdelivered. And I've helped businesses recover from failed implementations that cost them months and tens of thousands of dollars.

This guide gives you the framework to avoid those mistakes.

What to Look For in an AI Consultant

1. Specific, Relevant Experience

Ask for case studies in your industry or with similar problems. Vague claims about "helping businesses with AI" mean nothing.

Good sign: They can walk you through exactly how they solved a problem similar to yours.

Red flag: They only speak in generalities or can't provide references.

2. Technical Depth AND Business Acumen

The best AI consultants understand both technology and business. They can discuss implementation details and ROI projections.

Good sign: They ask about your business goals before discussing technology.

Red flag: They lead with tools and technology without understanding your problems.

3. Clear Process and Timeline

A professional consultant has a defined methodology. They can tell you exactly what happens at each stage and provide realistic timelines.

Good sign: They provide a written proposal with phases, deliverables, and milestones.

Red flag: "It depends" is their only answer, or timelines seem unrealistically fast.

4. Honest About Limitations

No consultant can solve every problem. The good ones will tell you when something is outside their expertise or when AI isn't the right solution.

Good sign: They push back on requests that don't make sense.

Red flag: They say "yes" to everything without qualification.

Questions to Ask Before Hiring

Use these questions in your evaluation conversations:

About Their Experience

• "Can you walk me through a similar project you completed?"
• "What was the biggest challenge and how did you solve it?"
• "Why did that implementation succeed?"
• "What would you do differently if you did it again?"

About Their Approach

• "How do you typically structure an engagement?"
• "What do you need from us to be successful?"
• "How do you handle scope changes?"
• "What happens after implementation—who maintains the systems?"

About This Specific Project

• "What's your initial assessment of our situation?"
• "What are the potential risks or challenges you see?"
• "What's a realistic timeline and budget?"
• "What would make you walk away from this project?"

References

• "Can I speak with 2-3 recent clients?"
• "Do you have any clients I could contact who had challenges during the project?"

Red Flags That Should Make You Walk Away

1. Guaranteed Results

AI implementation has variables. Anyone guaranteeing specific outcomes without understanding your situation is either lying or naive.

2. Unusually Low Pricing

Quality AI work isn't cheap. If someone is significantly undercutting the market, ask why. Often it's because they're learning on your dime.

3. Overly Technical Jargon

Good consultants explain things clearly. If they can't translate technical concepts into business language, they probably can't translate your business needs into technical solutions.

4. Pressure Tactics

"This price is only good today" or "We have limited availability" are sales tactics, not signs of a quality consultant.

5. No Discovery Process

If they're ready to start implementing without deeply understanding your business, they're not building the right solution.

6. Ownership Issues

Ask who owns the code, the data, and the systems after the engagement. If it's not you, think carefully about the long-term implications.

How to Structure the Engagement

Start with Discovery

A reputable consultant will want to understand your business before proposing solutions. Expect to pay for this—free discovery often means they're selling, not consulting.

Define Clear Deliverables

Every phase should have specific, measurable outputs. "Improve efficiency" isn't a deliverable. "Reduce onboarding time from 4 hours to 30 minutes" is.

Build in Checkpoints

Structure payments around milestones. This protects both parties and ensures the project stays on track.

Plan for Knowledge Transfer

You should be able to maintain and extend the systems after the engagement ends. Build training and documentation into the scope.

Pricing Models: What to Expect

Fixed Price

Best for: Well-defined projects with clear scope.

Typical range: $5,000 - $50,000+ depending on complexity.

Watch out for: Scope creep clauses, rush to finish, cutting corners.

Hourly/Daily Rate

Best for: Advisory, strategy, or evolving projects.

Typical range: $150 - $500/hour for quality consultants.

Watch out for: Scope bloat, lack of accountability for outcomes.

Retainer

Best for: Ongoing optimization and support.

Typical range: $2,000 - $10,000/month.

Watch out for: Paying for unused hours, lack of clear deliverables.

Value-Based

Best for: High-impact projects with measurable ROI.

Pricing: Tied to outcomes or a percentage of value created.

Watch out for: Misaligned incentives, difficulty measuring value.

The Right Consultant for Your Stage

Just Starting Out (Budget: $2K-10K)

Look for consultants who specialize in quick implementations. You need someone who can help you get wins on the board fast.

Scaling Up (Budget: $10K-50K)

Look for partners with experience building systems that grow. Integration and architecture matter more at this stage.

Enterprise (Budget: $50K+)

Look for teams with enterprise experience. Security, compliance, and change management become critical considerations.

My Recommendation

Before hiring anyone:

• Do your own research - Understand the basics so you can evaluate claims
• Start small - Pilot with a limited engagement before committing to a large project
• Check references - Actually call past clients and ask hard questions
• Trust your gut - If something feels off, it probably is

The right AI consultant is a partner, not a vendor. They'll challenge your assumptions, protect your interests, and build solutions that last.

The wrong one will cost you more than money. They'll cost you time, opportunity, and potentially damage your business.

Choose carefully.

---

Want to discuss whether AI consulting is right for your business? Book a free strategy call — no pressure, just clarity on your next steps.