With an increasing number of companies adopting AI, the associated risks are no longer limited to internal systems. As vendors integrate AI into their services, businesses face crucial questions about visibility and accountability in case of issues arising from AI use. Companies are advised to establish clauses in contracts that require vendors to disclose AI usage openly, limit external data use, mandate human oversight during critical decisions, and clarify liability for AI errors or biases. Failure to address these aspects contractually could result in firms inheriting risks without adequate preparedness.
Specifically, organizations should ensure that vendors clearly outline how and where AI is employed in their services, as obscured AI utilization can lead to compliance risks in various jurisdictions. The EU’s AI Act exemplifies the move towards transparency in AI deployment. Additionally, contracts should include restrictions against sharing company data for vendor model training. Implementing strong human oversight mechanisms is necessary to mitigate biases, with historical precedents highlighting the potential for discrimination when oversight is absent.
Lastly, businesses must navigate liability concerns by stipulating clear responsibility clauses within contracts to avoid being held responsible for vendor-caused issues. This multi-faceted approach will help in protecting entities as AI continues to evolve and integrate into broader operations, marking the necessity of essential contractual frameworks.
👉 Pročitaj original: CIO Magazine
