Published: 12 December 2022
The risk and impact of ethical and compliance exposure from uncontrolled bias and explainability in AI software are growing. Sourcing, procurement and vendor management leaders must demand vendors make contractual commitments to provide responsible, explainable and interpretable AI.
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Sourcing, procurement and vendor management (SPVM) leaders who fail to extend their internal AI governance to vendors in their software and cloud contracts are exposing their organization to significant risk.
Software and cloud vendors that provide AI (directly or embedded within their software) may utilize and/or provide training datasets that can be subject to uncontrolled biased decisions and outputs.
Most software and cloud vendor contracts lack explicit commitments that make them accountable for providing responsible AI.
SPVM leaders responsible for negotiating AI vendor contracts must:
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