Navigating Generative AI Contract Negotiations: Essential Strategies for IT Teams
With the increasing adoption of artificial intelligence solutions across industries, skillfully negotiating generative AI (Gen AI) vendor contracts has become crucial for strategic business operations. Info-Tech Research Group’s latest research aims to equip IT teams with essential strategies for these negotiations while also raising awareness about the inherent risks associated with Gen AI agreements and their potential organizational impact.
Info-Tech highlights some of the challenges organizations encounter when implementing AI tools, including the lack of clear guardrails and guidelines established by IT, leading to potential legal and data safety concerns. Additionally, many organizations remain uncertain about the safety of their data within generative AI tools.
The research stresses the critical role of IT leaders in addressing these concerns, defining responsible AI principles, and carefully understanding AI capabilities, opportunities, and risks before negotiating with providers. Info-Tech also advises that it is important to determine which risks can be addressed in negotiations, which are to be mitigated operationally, and which ones cannot.
To guide IT leaders in evaluating and implementing AI technology, the firm outlines six AI guiding principles:
1. Establish Foundational AI Guiding Principles
2. Understand AI Capabilities, Opportunities, and Risks
3. Determine Acceptable Organizational Risks
4. Negotiate Effectively with AI Providers
5. Implement AI Responsibly
6. Monitor and Evaluate AI Usage
By following these principles, organizations can leverage AI’s innovative potential while safeguarding against various risks associated with AI implementation. This balanced approach enables responsible integration of AI into business operations, enhancing competitive advantage while maintaining rigorous risk management.
For further insights and access to the complete research, contact Info-Tech Research Group.
