Proof of concept: definition, purpose and distinction
Why the Term Matters
Without a proof of concept, build decisions rest on assumptions that later turn out wrong. The test makes the risk visible before much budget flows. We keep the proof of concept tight, with a clear question and real data, so the answer is solid. Instead of a shiny demo it honestly shows where the approach holds and where the limits are.
When It Is Relevant
- An approach is plausible but not proven.
- Before a larger investment the risk should be checked.
- The data situation is uncertain and should be assessed against a real test.
- Two possible paths should be compared on a small case.
When Not
When the approach obviously works and comparable cases have already been built, a proof of concept is unnecessary effort and you start development directly. And when the question is too broad, the test delivers no clear answer, then the use case must first be sharpened.
Industries That Use It
- Chemicals and process industry: check whether an assistant reliably evaluates technical documentation before building broadly.
- Real estate: test whether listing and contract data is cleanly extracted, on a small dataset.
- Wholesale: check on real requests whether an automatic pre-structuring is viable.
- Healthcare: clarify on anonymised cases whether an approach works within data protection limits.
Typical Use Cases
- A test of a single question on real data.
- A comparison of two approaches on a small case.
- A risk check before a larger investment.
- An assessment of the data situation on a real slice.
- A basis for the decision between build and buy.
Decision Guide
| Signal | Proof of concept fits | Alternative |
|---|---|---|
| Approach plausible, unproven | proof of concept with a clear question | build directly on a known pattern |
| Investment is large | test to check risk | business case calculation |
| Question too broad | sharpen the use case first | workshop for scoping |
| Pattern already built | rather not | start development |
Example
A process industry company wants an assistant for technical documentation and is unsure whether the AI handles the terminology. A proof of concept checks exactly this question on real documents. The result shows where the approach holds and where not. This describes the approach, not an asserted metric.
Service Connection
The proof of concept usually emerges in the AI workshop and supports the decision for AI development or against a build.
Sources
This framing describes common practice for a proof of concept in AI initiatives. Technical and legal details depend on the concrete case and the chosen systems and should be checked there.