AI Procurement and Vendor Risk: Contract Terms Employers Should Watch

#ArtificialIntelligence #AIProcurement #VendorRisk #AIContracts #DataPrivacy

Companies expose themselves to significant legal, compliance and operational risks when contracting for or procuring AI technologies. In this episode of We Get Privacy, co-hosts Damon Silver and Joe Lazzarotti break down the AI-specific provisions — from disclosure obligations and data use to liability, audit rights and human oversight employers — that companies should address during vendor contracting.

Chapters

0:00 Welcome and Episode Overview
1:15 The AI Procurement Question
2:19 Understanding How Vendors Use AI
6:09 Reviewing MSAs and DPAs
7:40 AI Recordkeeping Requirements
8:55 Vendor Data Use and Model Training
10:45 De-Identification and Re-Identification
11:39 AI Disclosure and Contract Definitions
13:52 Human Review and High-Risk Decisions
16:54 Liability and Indemnification
19:25 Colorado Law and Intended Use
21:47 Prompt Data and DPA Scope
23:45 Negotiating AI Audit Rights
24:55 Exercising Vendor Oversight
28:20 Closing Thoughts