Evaluating Vendors for Forward Deployed AI
Every working FDE function has failed engagements, so a vendor who cannot describe one is either inexperienced or dishonest.
The Spotless Track Record
When an organization looks for an outside provider of forward deployed AI work, the vendor's own presentation is usually one of the first things it sees. Case studies, client logos, and confident claims about capability fill the pitch. These materials are useful, but they share one feature: they show the successes. A case study rarely describes the project that went badly, and a logo wall says nothing about the engagements that ended in disappointment.
This article asks a different question. How can you learn about a vendor's experience from the way they talk about something that went wrong? The source treats this as one of the more practical tests available during vendor evaluation. To see why, we first need to look at a common assumption that gets in the way.
Why a Missing Failure Story Is a Warning
A common assumption goes like this: a vendor who presents a spotless history, with no failed projects mentioned and every story ending well, must be the safest choice. The logic seems reasonable on the surface. If the vendor is experienced and honest, why would they hide anything? The problem is that this reasoning treats a missing failure story as evidence of good performance. The source points in the opposite direction.
The source makes a specific claim about forward deployed (FDE) work: every working FDE function has failed engagements. Failure is a normal part of this kind of work. A vendor who claims to have none is therefore not describing a flawless operation. By the source's own standard, they are describing something that does not match experience. The summary of the source puts it directly: a vendor who cannot describe a failed engagement is either inexperienced or dishonest.
What do you think happens?
A vendor presents a spotless history with no failed projects and every story ending well. According to the source, what should an evaluator conclude?
Reveal answer
The vendor is either inexperienced or dishonest, and the evaluator should ask more questions.
Every working FDE function has failed engagements, so a claim of none does not match experience. The source treats a vague or missing failure story as a reason to ask more questions, not as evidence of safety.
The Four Elements of a Failure Account
The source describes a different kind of answer. A vendor who can describe a failed engagement in specific detail has been doing the work long enough to develop real judgment. The strength of the answer lies in its specificity. A vague statement such as we learned a lot from a difficult project does not show judgment. A specific account does, because it names concrete things that a person could only know by having been there.
The source gives a structure for what a specific account contains. It has four elements: the customer's industry, the problem that was being addressed, what went wrong, and what the vendor would do differently. Each element tests something different, so an evaluator can check each one separately.
- Customer industry: shows that the vendor has worked in a real context
- The problem: shows that the vendor understood what the customer needed
- What went wrong: shows that the vendor can diagnose their own errors
- What they would do differently: shows that the lesson changed how they work now
The four elements are not interchangeable. An account that names a real industry but cannot say what went wrong has shown some context without showing judgment. An account that names a mistake but never says what the vendor would change has shown that something went wrong without showing that anything was learned. A useful answer covers all four, because together they show that the vendor did real work, understood it, and changed as a result.
Tracing a Vendor Answer Step by Step
Consider two answers to the same interview question: tell us about a project that did not go as planned. The example below is an illustration written for this article, not a case from the source. Read each answer and check it against the four elements before reading the evaluator's notes.
Checking two answers against the four elements
Two vendors are asked about a project that did not go as planned. Vendor A says: We learned a lot from a difficult project and we are better for it. Vendor B says: We worked with a regional logistics company whose goal was to forecast delivery delays. Our model trained on clean historical data but failed once their dispatch system began sending partial records, and we did not check for that. We now validate incoming data before any model review and we ask the customer about upstream systems in the first week.
- 1Check for an industry
Vendor A names no industry or customer context. Vendor B names a regional logistics company, which shows a real working context.
- 2Check for the problem
Vendor A never states what the customer needed. Vendor B states the goal: forecasting delivery delays.
- 3Check for what went wrong
Vendor A gives only a general feeling of difficulty. Vendor B names a specific failure, partial records from the dispatch system, and admits the team did not check for it. That is the kind of diagnosis of their own error the source describes.
- 4Check for what they would do differently
Vendor A states no change. Vendor B describes two changes in how it works now, which shows the lesson changed later practice.
Vendor A's answer is vague regret, which the source says does not show judgment. Vendor B's answer covers all four elements and names concrete things that could only be known by having been there. Vendor B is the stronger signal, though an evaluator should still verify the details.
Judgment Versus a Polished Record
The source calls honesty about failure the differentiator between vendors. Many vendors can look similar on paper: similar logos, similar capability claims, similar case study formats. What separates them is how they talk about what went wrong. A vendor with real judgment and a vendor presenting only a polished record may sound equally confident about their successes, but they diverge when asked about failure.
| Question to ask | Vendor with real judgment | Vendor with only a polished record |
|---|---|---|
| Can you describe a project that went wrong? | Yes, with specific detail | Not really, or only in general terms |
| What was the customer's industry and problem? | Names both concretely | Omitted or kept general |
| What went wrong, and why? | Names a specific error and their part in it | Blames circumstances or says nothing |
| What would you do differently? | Describes a concrete change in practice | No change named, or a slogan |
Signals an evaluator can check when a vendor describes a failed engagement
Mistakes Evaluators Make
Common mistake Treating a spotless history as the safest choice
Why it failsThe source states that every working FDE function has failed engagements, so a claim of none does not match experience.
Do this insteadTreat a missing failure story as a reason to ask more questions.
Common mistake Accepting a general statement about learning from difficulty as a failure account
What it looks likeWe learned a lot from a difficult project.
Why it failsThe source says vague regret does not show judgment, because it names nothing concrete.
Do this insteadAsk for the industry, the problem, what went wrong, and what the vendor would do differently.
Common mistake Checking only whether a failure was mentioned
Why it failsMentioning a failure is not the same as explaining it. The four elements are what show experience and judgment.
Do this insteadCheck each of the four elements separately before forming a view.
Common mistake Judging honesty by how confident the vendor sounds
Practice Reviewing a Failure Account
A vendor answers your question about a failed project with this statement: It was a hard engagement with a lot of moving parts, but the team pulled through and the client was satisfied. Using the four elements, identify which elements are missing, state what follow-up questions you would ask, and explain what you would conclude about the vendor's experience and honesty at this point.
Hints
- Go through industry, problem, what went wrong, and what they would do differently, one at a time.
- The source says vague regret does not show judgment, and a missing failure story is a reason to ask more questions.
- Your conclusion should be cautious: the answer is incomplete, not proven dishonest.
Summary of Evaluating a Vendor's Failures
- 1Every working FDE function has failed engagements, so a vendor who cannot describe one is either inexperienced or dishonest.
- 2A useful failure account covers four elements: the customer's industry, the problem, what went wrong, and what the vendor would do differently.
- 3Each element tests something different: real context, understanding of the customer's need, diagnosis of their own errors, and a lesson that changed how they work.
- 4Honesty about failure is the differentiator between vendors, so a vague or missing failure story is a reason to ask more questions.
At a glance
- Every working FDE function has failed engagements, so a vendor who cannot describe one is either inexperienced or dishonest.
- A useful failure account covers four elements: the customer's industry, the problem, what went wrong, and what the vendor would do differently.
- Specificity is the signal: vague regret does not show judgment, while concrete details that could only come from experience do.
- Honesty about failure is the differentiator between vendors, so a vague or missing failure story is a reason to ask more questions.