There are now many "AI agencies" in India, from experienced software firms to people who started last year after watching automation videos. Some are excellent. Some will set up a demo with your logo, take a setup fee and leave you with something that breaks in a month. Their websites often look similar.
The questions below help you tell the difference. A good agency will answer them clearly and won't mind being asked. Take this list into every call.
The problem
- What problem in my business will this solve? A good answer starts with your business, not their technology.
- How will we measure whether it worked? Look for a specific number, such as reply time, hours saved or no-show rate, and a baseline taken before launch.
- What would you not use AI for in my case? An agency that says "everything" is selling, not advising.
- Have you built something similar? Can I see it working? Ask for a live demo on real-looking data, not slides. Be cautious about client claims you can't verify.
Data and safety
- What data will the system see, and where is it stored? Which country, which provider, and for how long?
- Is my data used to train any AI models? Get the answer for each provider involved.
- What happens when the AI doesn't know the answer? It should hand over to a person, not guess. See why AI makes things up.
- Which actions can it take without approval? For agents, ask for the list. See human in the loop.
- How do you handle the DPDP Act? The Digital Personal Data Protection Act, 2023 is law, and its Rules were notified in November 2025. Most duties for businesses (notice, consent, security, breach reporting) apply from May 2027. You should get written data-protection terms.
Cost
- What is the one-time setup cost, and exactly what does it include?
- What will it cost per month at my volume? AI usage, WhatsApp messages, hosting, monitoring. Ask them to show the calculation.
- What happens to the cost if my volume doubles?
- Is GST included?
- What do changes cost after launch? New prices, new services, a new question type.
Our guide to what AI costs a small business explains each cost line.
Ownership
- Whose name are the accounts in? WhatsApp Business, AI provider, hosting and domain should belong to your business.
- Who owns what you build for me? The configuration, prompts, workflows and code.
- If I leave, what do I take with me? Conversation history, contacts, configuration, in a usable format.
See who owns your website and accounts for the same issue with marketing agencies.
Support
- Who do I call when it breaks, and how fast do you respond?
- Who reviews the AI's conversations, and how often? In the first months, someone should look weekly.
- What's the contract length and notice period? Prefer a short first term.
Warning signs in the answers
- Guarantees of sales, leads or "replacing your staff"
- Vague answers on monthly costs ("it's very cheap")
- Accounts in the agency's name
- No plan for what happens when the AI is wrong
- Pressure to sign this week for a discount
More in marketing agency red flags. Most of them apply to AI agencies too.
Checklist: before you sign
- Problem and success measure agreed in writing
- Baseline number recorded before work starts
- Data storage, training and DPDP terms in writing
- Setup and monthly costs at your volume, GST stated
- Accounts in your business's name
- Exit terms: what you get back and in what format
- Named support contact and response time
- Short first term
Our own prices for AI agents and chatbots are published, monthly fees included. Ask us these questions too.
