Red flags to look out for when choosing an AI app development company

10 min read
October 10, 2023

AI app development is taking the world by storm.

And finding a company to partner with is the best way to build an AI app.

But, you need to make the right choice.

That’s why we’re going to discuss red flags you should look out for when choosing an AI app development company.

Let’s dive in!

No AI app development experience

The first thing you should check when choosing an AI app development company is their experience.

And having no AI app development experience is a major red flag.

So, what are some clues that a company doesn’t have any experience?

The first clue is if they’re vague about their AI app development process.

Watch out for vague language and an overreliance on unclear technical jargon.

A good AI app development company won’t try to impress you with flowery language.

They’ll do it by clearly saying why developing an AI app is right for you.

Another clue that a company doesn’t have experience with developing AI apps is if they don’t have a diverse tech stack.

Their tech stack should list:

  • AI frameworks
  • Database management systems (DBMS)
  • Cloud platforms
  • Types of AI apps they build

Some of the top frameworks you should expect to see listed are:

As for cloud platforms, the most common are:

They should also be able to build various types of AI apps, from apps with direct AI integration to edge AI.

If a company lists these elements, that’s a good sign.

It shows that they have knowledge of the basic tools and their teams have the right skills for AI app development.


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Of course, they might not list every framework and platform we’ve mentioned – and that’s okay, too.

For example, they might specialize in building a particular type of AI app and don’t need a broad tech stack.

But, a good AI app development company will be transparent about the tools they’ll use to create your app.

The tools and frameworks they use show their proficiency with AI app development.

And that’s exactly what you should be looking for.

Unrealistic promises

Estimating how long it takes to develop an app is hard at the best of times.

And with AI apps, it’s become even harder.

That’s why you need to watch out for unrealistic promises.

While AI is revolutionizing app development and increasing productivity, it can’t help a company create an app out of nothing in weeks – not a usable one, at least.

So, if a company promises that an app will be built and deployed in a month or 2, that’s a big red flag.

Keep in mind that there’s no one-size-fits-all approach to estimating app development time.

The best answer to the question “How long will it take to develop my AI app?” is: “It depends.”

Appinventiv estimates that the average app development time is around 4-6 months, as you can see below:

Average app development time

source: Appinventiv

And your app’s development time will primarily depend on your app’s complexity.

But, it’s not just your app’s complexity that impacts its development time.

A good company will have a thorough approach to AI app development.

This means they do it in these stages:

  • Product discovery
  • Wireframing and prototyping
  • Product design
  • Development and quality assurance (QA)
  • Launch and post-launch support

And this can take time.

If you have a complex app idea, just product discovery can take over a month.

But, the end result is an app that meets your users’ needs and has a much better chance of success.

Like leadership expert Simon Sinek said: ““It’s better to go slowly in the right direction than go speeding off in the wrong direction.”

Neglecting data security

Data is the lifeblood of every AI model.

Without it, AI models can’t be trained and can’t function properly.

That’s why it’s such a red flag if an AI app development company neglects data security.

Data security is becoming even more important as cybercrime is expected to surge in the coming years.

Cybercrime costs by year

source: Statista

It’s estimated that the worldwide cost of cybercrime will reach $23.82 trillion by 2027 – a 107% increase from 2023.

But, these figures are the bigger picture.

You’re likely wondering how much it can cost you individually.

In 2022, the average cost of a data breach was $4.35 million – that’s a compelling reason to take data security seriously.

And it’s not just financial damage you should worry about.

If your app isn’t secure, you could suffer serious reputational damage, too.

Your users won’t trust or use an app if their data is vulnerable.

So, how can you make sure an AI app development company isn’t neglecting data security?

The first step is checking if they have relevant security certifications, like ISO/IEC 27001.

ISO 27001 domains

source: Kolide

This means that they follow globally accepted data security standards and best practices.

Next, make sure you ask them how they handle data.

This means asking them how they:

  • Store data
  • Transfer data
  • Access data

Make sure that they follow industry best practices and encryption standards.

Also, it’s a good idea to invest in AI-powered cyber security systems.

Darktrace’s Enterprise Immune System and Crowdstrike’s Falcon platform are good choices.

They’ll make your app even more secure and fill in any security gaps that might be left.

And there’s no such thing as too much security.

Inadequate infrastructure

It’s no secret that AI consumes a lot of resources.

In fact, that’s one of the major drawbacks of AI app development.

That’s why the AI app development company you partner with needs to have infrastructure that’s up to par.

If they don’t, they won’t be able to build and maintain your AI app.

So, what kind of infrastructure do they need to have?

If they’re training and deploying custom AI models, they need to have state-of-the-art servers and hardware.

This includes expensive GPUs and TPUs, especially if they’re training deep learning models.

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But, that can be very expensive.

For example, just training OpenAI’s GPT-3 model cost $4 million.

Of course, the vast majority of AI models won’t reach the scope and size of GPT-3 but it’s still a good example of high potential costs.

That’s one of the reasons why most AI app development companies use the cloud-based AI platforms we’ve mentioned earlier.

But, they still need to have good infrastructure to handle the amount of data AI models use.

Also, they need to have ample data storage capacity.

If they don’t, they won’t be able to train or deploy AI models in your app.

In short, the AI app development company you pick has to have good infrastructure.

Otherwise, they won’t be able to bring your app idea to life.

No case studies or client testimonials

An AI app development company’s case studies are one of the best ways to find out about their experience.

If they don’t have any, that’s a major red flag.

But, why are case studies so important?

For starters, they give you an in-depth look into the company’s previous work.

You can find out how they’ve solved problems for their clients and their approach to AI app development.

DECODE case study

They’ll also give you an idea about the variety of AI apps they’ve developed and the challenges they’ve faced while doing it.

Both of these are key factors when deciding whether or not to partner with a particular company.

And in-depth and diverse case studies show that a company is credible and trustworthy.

Not having any shows that the company lacks experience and probably isn’t a good fit for you.

But, case studies are just one piece of the puzzle.

Client testimonials and reviews are just as important.

DECODE Clutch review

source: Clutch

They tell you more about the company and what it’s like working with them from a client’s perspective.

The best place to find them is on third-party websites, such as:

And the reviews on all 3 sites are verified so you can be sure of their authenticity.

If a company doesn’t have any reviews on third-party sites or client testimonials on their own site, that’s a bad sign.

In that case, you should move on and try to find another company to partner with.

Lack of post-launch support

Building a minimum viable product (MVP) and launching your AI app is just the first step.

Your app’s development and evolution shouldn’t stop at launch.

That’s why it’s a red flag if an AI app development company doesn’t offer post-launch support.

It is critical to your app’s success.

And that’s especially true for AI apps.

One key reason is that AI models need to be periodically retrained with fresh data.

If they aren’t, they can start drifting and lose accuracy.

AI model drift

source: AIMultiple

Also, post-launch support is important because AI is a constantly evolving field.

Once your app is launched, you’ll need to iterate on your MVP to keep up with new developments.

If you don’t, you’ll risk falling behind your competitors.

And post-launch support isn’t just important because of the AI model in your app.

Every app faces unforeseen bugs and issues after launch which need to be solved.

Having a long-term partnership with an AI app development company will help you keep on top of those bugs.

And you can’t have that if they don’t offer post-launch support.

The point is, don’t just look for a company that’ll build you an MVP and move on.

You should prioritize finding a long-term partner who will consistently build upon your MVP.

That’s the best way to get the most out of your partnership.


Finding the right AI app development company is key to your AI app’s success.

But, picking the wrong one can cost you.

That’s why you need to look out for some common red flags and avoid making that mistake.

The red flags are:

  • No AI development experience
  • Unrealistic promises
  • Neglecting data security
  • Inadequate infrastructure
  • No case studies or client testimonials
  • Lack of post-launch support

If you want to learn more, check out how we build AI apps, and reach out to us if you need an AI app.

Written by

Marko Strizic

Co-founder and CEO

Marko started DECODE with co-founders Peter and Mario, and a decade later, leads the company as CEO. His role is now almost entirely centred around business strategy, though his extensive background in software engineering makes sure he sees the future of the company from every angle. A graduate of the University of Zagreb’s Faculty of Electrical Engineering and Computing, he’s fascinated by the architecture of mobile apps and reactive programming, and a strong believer in life-long learning. Always ready for action. Or an impromptu skiing trip.

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