Navigating Generative AI Contract Terms: New Insights Published by Info-Tech Research Group

Navigating Generative AI Contract Terms: New Insights Published by Info-Tech Research Group

The research and advisory firm’s new industry resource explains how organizations can confidently and clearly navigate the complex landscape of generative AI contracts. Info-Tech highlights expert strategies for IT leaders negotiating contracts and ensuring security, privacy, and transparency while maximizing the innovative potential of AI technologies in today’s competitive business market.

TORONTO, ON, April 22, 2024 /PRNewswire/ – As demand for artificial intelligence solutions surges across various industries, the need to skillfully negotiate generative AI (Gen AI) vendor contracts has become crucial for strategic business operations. Info-Tech Research Group’s newly published research, Prepare to Negotiate Your Generative AI Vendor Contract, is designed to equip IT teams and their organizations with essential strategies for these contract negotiations while also raising awareness about the inherent risks associated with Gen AI agreements and their potential organizational impact.

“When Gen AI entered the business sphere, organizations were very keen on leveraging the technology,” says Emily Sugerman, senior research analyst at Info-Tech Research Group. “Many organizations hope to find value in exploiting Gen AI products for a variety of use cases such as data analysis and summary, copywriting, image generation, or code writing. However, the excitement around the potential of these tools is tempered by an awareness of their potential risks. IT leaders need to cultivate risk awareness and thoroughly understand what to consider when entering AI vendor contract negotiations.”

Info-Tech highlights some of the challenges organizations encounter when implementing AI tools, including situations where users apply AI tools without clear guardrails or 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 firm emphasizes that IT leaders must address these concerns to ensure their organizations maintain a competitive edge in today’s business market.

The firm’s research further stresses the critical role of IT leaders in 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. In its new research, the firm outlines six AI guiding principles for IT leaders to consider while evaluating and implementing the technology:

  1. Safety & Security: The system needs to be secure, safe, and robust.
  2. Privacy: Individual data privacy must be respected.
  3. Explainability & Transparency: Decisions or predictions should be explainable.
  4. Fairness & Bias Detection: Data used must be unbiased to produce predictions that are fair.
  5. Accountability: A person or organization must take responsibility for any decisions made based on the AI model.
  6. Validity & Reliability: Monitoring of the data and the model needs to be planned.

Info-Tech lays out a strategic approach where IT leaders can establish foundational AI guiding principles. These principles provide a framework to safeguard technical and nontechnical staff when working with AI technologies. By doing so, organizations not only leverage AI’s innovative potential but also protect 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 exclusive and timely commentary from Emily Sugerman, an expert in infrastructure & operations, and access to the complete Prepare to Negotiate Your Generative AI Vendor Contract research, please contact [email protected].

About Info-Tech Research Group

Info-Tech Research Group is one of the world’s leading research and advisory firms, proudly serving over 30,000 IT and HR professionals. The company produces unbiased, highly relevant research and provides advisory services to help leaders make strategic, timely, and well-informed decisions. For nearly 30 years, Info-Tech has partnered closely with teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations. 

To learn more about Info-Tech’s divisions, visit McLean & Company for HR research and advisory services and SoftwareReviews for software buying insights.

Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm’s Media Insiders program. To gain access, contact [email protected].

For information about Info-Tech Research Group or to access the latest research, visit and connect via LinkedIn and X.

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