Navigating the Chaos of AI Vendor Licensing
The landscape of AI vendor licenses is in disarray, with Gartner VP analyst Jo Liversidge shedding light on critical issues for buyers. During a recent symposium in Australia, she highlighted several key challenges businesses face when dealing with AI contracts:
- Lack of Transparency: Major vendors, like AWS, often include AI clauses in obscure parts of legal documents, necessitating careful scrutiny by buyers.
- Liability Concerns: Many contracts don’t clarify who bears responsibility for AI-generated mistakes, leaving users vulnerable.
Liversidge urged buyers to pressure vendors to:
- Include Responsible AI Principles: Currently, only 1% of vendors do this.
- Adhere to ISO 42001 Standards: Essential for AI management compliance.
With inconsistent pricing strategies and confusing credit systems, companies must remain vigilant. Vendors often deploy products without essential monitoring tools, leading to hidden costs.
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