What are some best practices for managing vendor relationships and negotiating contracts in the AI/ML space?

In my experience, negotiating contracts involves ensuring that we don't end up with shelfware—products that are sold but not used effectively. Vendors will always aim to make a profit, so it's crucial to negotiate deals that are beneficial for both parties. I look for partnerships where the vendor is willing to grow with us, rather than just being a transactional relationship. A true partnership creates a win-win situation, providing value beyond the initial sale.

Managing vendor relationships in the AI/ML space requires transparency and clear communication. It's important to have frank conversations to discern what the product truly offers versus what is just marketing hype. Many vendors claim to incorporate AI, but it's crucial to understand the genuine AI components and whether they justify the cost. In the government sector, collaboration through initiatives like the Gov. AI Coalition helps us negotiate better contracts by sharing insights and experiences with various vendors. Internally, it's vital for all departments to be aligned. If one group negotiates independently, it can lead to fragmented relationships and missed opportunities for better pricing and long-term contracts.