AI Vendor Evaluation Checklist¶
Selecting the right AI vendor is a critical step in managing risk and ensuring safe, ethical, and productive use of AI in your business. This checklist helps Australian organisations assess potential AI vendors against industry standards, legal requirements, and best practices.
Using this evaluation process supports stronger AI governance by:
- Reducing risks from unverified or non-compliant AI products.
- Ensuring transparency, accountability, and security in AI procurement.
- Building trust with customers, regulators, and partners.
This checklist can be used as part of your organisation’s AI governance framework when:
- Onboarding a new AI vendor.
- Renewing or extending existing vendor contracts.
- Reviewing AI products that have undergone significant updates.
Work through each section, seek evidence from the vendor, and record your findings. Where needed, consult legal, risk, or IT experts before approving an AI vendor.
AI Vendor Evaluation Checklist (Template)¶
Vendor Name: ____
Product/Service: ___
Date of Evaluation: _____
Vendor Evaluation Summary (Quick Scoring Table)¶
| Category | Score (1–5) | Notes / Evidence |
|---|---|---|
| Vendor Information | ||
| Product/Service Description | ||
| Compliance & Certifications | ||
| Data Governance | ||
| Security Practices | ||
| Model Development & Testing | ||
| Human Oversight & Support | ||
| Incident Management | ||
| Contractual Safeguards | ||
| References & Track Record | ||
| Overall Risk Rating |
Scoring guidance:
- 1 = Very weak / not demonstrated
- 3 = Adequate but with gaps
- 5 = Strong evidence, fully compliant
1. Vendor Information¶
Provide vendor details including name, ABN/ACN, headquarters, key contacts, and years in operation.
Sources: ASIC requirements; Supplier Due Diligence Standards
2. Product/Service Description¶
Outline the AI products or services provided, including version numbers and intended use.
Sources: Guardrail 1; Australian AI Ethics Principle: Transparency
3. Compliance & Certifications¶
List certifications (ISO/IEC 23894, ISO/IEC 42001, SOC 2) and confirm regulatory compliance.
Sources: Guardrail 7; ISO/IEC 42001
4. Data Governance¶
Check vendor policies on data handling, privacy protection, IP safeguards, and data provenance.
Sources: Privacy Act 1988 (APPs); Guardrails 4 & 7
5. Security Practices¶
Assess cybersecurity measures, vulnerability management, and penetration testing frequency.
Sources: Guardrail 5; ACSC Essential Eight
6. Model Development & Testing¶
Request information on training data, bias mitigation, validation, and explainability features.
Sources: Guardrails 6 & 9; NIST AI RMF
7. Human Oversight & Support¶
Review the level of human oversight in operations, escalation paths, and customer support availability.
Sources: Guardrail 8; Australian AI Ethics Principle: Accountability
8. Incident Management¶
Confirm the vendor’s process for incident reporting, investigation, and resolution timelines.
Sources: Guardrail 10; ISO/IEC 27035
9. Contractual Safeguards¶
Review liability clauses, service-level agreements, IP ownership terms, and termination rights.
Sources: Australian Consumer Law; Contract Law
10. References & Track Record¶
Check customer references, case studies, and the vendor’s history of regulatory compliance.
Sources: Supplier Risk Management Best Practice
Documenting & Storing Results¶
To ensure accountability and provide an audit trail:
- Record all responses and supporting evidence provided by the vendor.
- Capture notes on any identified risks or gaps and how they will be managed.
- Store completed checklists in a secure repository (e.g. risk register, governance system, or procurement file).
- Review and update the checklist regularly, especially when vendors release new versions or change their business practices.
- Cross-reference this checklist with your organisation’s AI Risk Assessment and Incident Reporting processes for a complete governance record.
Template Disclaimer & Licence¶
Disclaimer¶
The purpose of this template is to provide best practice guidance on implementing safe and responsible AI governance in Australian organisations.
SafeAI-Aus has exercised care and skill in the preparation of this material. However, SafeAI-Aus does not guarantee the accuracy, reliability, or completeness of the information contained.
The content reflects best practice principles but is intended as a starting point only. Organisations should adapt this template to their specific context and may wish to seek advice from legal counsel, governance, risk, or compliance officers before formal adoption.
This publication does not indicate any commitment by SafeAI-Aus to a particular course of action. SafeAI-Aus accepts no responsibility or liability for any loss, damage, or costs incurred as a result of the information contained in this template.
Licence¶
This template is made available under the Creative Commons Attribution 4.0 International (CC BY 4.0) licence.
You are free to:
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Attribution statement for reuse:
“This template was developed by SafeAI-Aus and is licensed under CC BY 4.0. Source: SafeAI-Aus.”
Full licence text: https://creativecommons.org/licenses/by/4.0/