Prepare to Negotiate Your Generative AI Vendor Contract

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Your organization has built its AI strategy, developed some high-value use cases, and begun the process of acquiring and licensing a Gen AI platform. A crucial part of that process will be identifying and mitigating risk, and the Gen AI vendor contract is a good place to start.

Our Advice

Critical Insight

As you prepare for contract negotiation, take the opportunity to build risk awareness about the nature of these offerings and how you may be impacted.

Impact and Result

Understand how the major areas of risk in Gen AI products may manifest in the contracts for these products.
Come to a consensus on your level of risk tolerance before entering into negotiations.
Determine which risks can be addressed in negotiations, which are to be mitigated operationally, and which cannot be mitigated.

Prepare to Negotiate Your Generative AI Vendor Contract Research & Tools

1. Prepare to Negotiate Your Generative AI Vendor Contract Deck – Work through a series of the major risks that may affect your generative AI contract negotiation.

Use this research to ensure your organization enters contract negotiations reasonably informed of the risks inherent in Gen AI and aligned on the position it will take on these risks in the negotiation process.

2. Prepare to Negotiate Your Generative AI Contract Risk Assessment Tool – Identify areas of risk and roadblocks in the negotiation process for a Gen AI tool.

Use this tool to understand your risk across the following areas: data privacy, AI bias, organizational readiness, reliability of outputs, vendor commitment to AI governance, liability, vendor transparency, ownership and use of customer data, market volatility and vendor lock-in, and safety and security.

Prepare to Negotiate Your Generative AI Vendor Contract visualization

Build risk awareness: You can’t begin to negotiate until you understand where your real risk points are.

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