Contract management for AI technology

While an effective procurement process and clear, simple contract can help set your internal and vendor teams up for success, the work continues in contract management.

Good contract management is critical to get the most from your AI contracts, secure good value for money, and to keep the project within scope. A lot of value can be gained or lost during the contract management phase, which is why close alignment between the procurement, project, and technology teams matters.

Contract management tips

• Focus on communication with your internal technology and project teams. AI technology requires ongoing maintenance. This has cost, audit, and security implications. For example, with flexible services, it can be easy for an internal team member to spin up a report or monitoring service and unknowingly go over cost. Sometimes technology teams can also accidentally set off vendor security alerts by not going through proper channels with the vendor when conducting vulnerability assessments, leading to service interruptions. Open and clear internal communication and a shared understanding of boundaries with internal teams can help you keep your project within scope, maintain good vendor relationships, and maintain smoothly operating services.
• Fit your vendor management approach to the size and scope of the contract. How often you check in with a vendor will vary. Buying development services is different from buying access to a service, and a large, high-profile project is different from a simpler and lower-risk project. No matter the scope, your check-in meetings should help gauge if you are continuing to get good value from the contract.