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Software projects and pricing

Proof of concept vs pilot (PoC, POV)

A proof of concept shows something can work on sample data; a pilot runs it for real users on real data; a proof of value measures whether it pays.

With AI the gap between them is large. A PoC with a dozen hand-picked documents almost always impresses; the pilot meets messy data, permissions, edge cases and people who did not ask for it. Vendors use POV (proof of value) to move the conversation from “it works” to a business number. A commercial pilot is usually paid, time-boxed and scoped, so both sides take the result seriously.

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Related terms

  • Pilot success criteria (exit criteria): Measurable conditions agreed before a pilot starts that decide whether it passed and the buyer moves to a full contract.
  • Pilot purgatory (PoC purgatory): When AI proofs of concept and pilots keep running or get dropped without reaching production, or go live but cost more in human oversight than they save.
  • MVP (minimum viable product): The smallest version of a product that tests whether people want it enough to use or pay.
  • Paid discovery (phase 0, inception): A short, separately priced project before the build: workshops, a technical feasibility check and a scoped plan with a quote you can take to any vendor.
  • Evals: A repeatable test set that scores an AI feature, so changes can be measured instead of guessed.

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