Contractual Controls for AI

AI Procurement, Contracts & Supply Chain Series, #1

By: Daniel Mercery

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eBook | 6 January 2026

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As organizations increasingly procure AI-enabled products and services, contractual gaps have become a primary source of legal, operational, and financial risk. Standard technology agreements often fail to address the unique characteristics of AI systems, leaving buyers exposed.

Contractual Controls for AI is a practical guide for procurement professionals, legal teams, and risk leaders responsible for negotiating and managing AI-related contracts. The book focuses on how to translate AI risk considerations into enforceable contractual protections that align with real-world delivery models.

This volume provides structured guidance and ready-to-use clause concepts covering the full AI vendor lifecycle, from sourcing and onboarding through operation and exit. It emphasizes clarity, accountability, and auditability rather than abstract legal theory.

Key areas covered include:

Intellectual property ownership and licensing for AI models
Data usage, training rights, and confidentiality boundaries
Model updates, version control, and change notification
Audit rights, transparency obligations, and access to evidence
Performance metrics, service levels, and failure remedies
Warranties, indemnities, and liability allocation for AI risk

Written in a precise and practical tone, this book enables organizations to strengthen their contractual posture, reduce ambiguity with AI vendors, and better align legal agreements with governance, compliance, and risk management objectives.