A proof of concept answers one question: can AI actually solve this problem? Here's how to run one properly.

PoC vs Pilot vs Production

StageQuestionTimelineCost
PoCCan AI do this?1-2 weeks¥100k-300k
PilotWill it work for us?4-8 weeks¥500k-1M
ProductionHow do we scale?4-12 weeks¥1M-5M

PoC Steps

  1. Define the problem: What specific task should AI handle?
  2. Set success criteria: How will you measure success?
  3. Prepare test data: Representative examples
  4. Run tests: AI processes test cases
  5. Evaluate: Did it meet criteria?
  6. Decide: Proceed, pivot, or stop

Defining Success Criteria

Be specific before you start:

Use CasePoC Criteria
FAQ Chatbot>80% accuracy on 100 test questions
Email drafting70% of drafts accepted with minimal edit
Document extraction>90% fields extracted correctly
Classification>85% correct categorization

Preparation: Sample Data

You need representative test cases:

  • Sample size: 50-100 examples minimum
  • Variety: Easy, medium, hard cases
  • Edge cases: Unusual inputs that might break AI
  • Ground truth: Correct answers for each test case
  • Real data: Actual examples, not made up

Running the PoC

Evaluation process:

  1. Process test cases: Feed inputs to AI
  2. Capture outputs: Save all AI responses
  3. Human evaluation: Compare to expected outputs
  4. Categorize: Correct, partially correct, wrong
  5. Error analysis: Why did failures happen?

Interpreting Results

What different outcomes mean:

  • >90% success: Ready for pilot
  • 70-90% success: Proceed with optimization
  • 50-70% success: Needs improvement, may not be viable
  • <50% success: Wrong approach or not AI-suitable

Common PoC Issues

IssueDiagnosisFix
Low accuracyAI can't handle taskDifferent model or approach
Inconsistent resultsPrompt instabilityBetter prompt engineering
Missing contextKnowledge base gapsAdd more documentation
Too slowModel/architecture issueSwitch to faster model

Go/No-Go Decision

After PoC evaluation:

  • Go: PoC met success criteria → proceed to pilot
  • Iterate: Close to criteria → optimize and re-test
  • Pivot: Different approach might work → new PoC
  • No-Go: Fundamentally doesn't work → abandon path

Documenting the PoC

Capture for stakeholders:

  • Test cases and results
  • Success metrics achieved
  • Error patterns identified
  • Recommendations for next steps
  • Estimated timeline and cost for pilot

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