4 Key AI Risks To Address When Contracting Services Or Products
CIO, Thursday, December 12th, 2024
Vendors and clients alike are frustrated as they work through how to address AI within their contracts. Both sides need to develop standardized, flexible language alongside their legal teams.
With the rapid rise of AI, especially GenAI, clients are evaluating risks from partner or vendor use of AI. CIOs and organizations are advised to consider how these risks may impact their operations and security and create contractual terms to address them. Specific areas of concern for CIOs and IT organizations are how a vendor uses its data, whether its data will be used in training public models, how data is protected, data access, results bias, and risks of hallucination and plagiarism. Clients wish to understand and mitigate the additional risk that AI may bring from their vendor and partner relationships.