Require advance notice of material model: What contract | AIGP
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Require advance notice of material model: What contract requirement is decisive?

AIGP Understanding the Foundations of AI Governance Medium

Material-change notification is decisive because it triggers reassessment of supplier evidence, responsibilities, and risks before continued use.

The question

A media company licenses a supplier’s generative editing service for production. The supplier may change models or data-processing practices, and the company must reassess risks when those changes affect the approved use. What contract requirement is decisive?

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  1. Require the supplier to provide annual performance benchmarks for the service.
    Annual benchmarks provide scoped performance evidence, but may not reveal material changes when they occur.
  2. Require a warranty that future service changes will not affect production outputs.
    A warranty cannot substitute for visibility into changes and may overstate what supplier evidence can establish.
  3. Require advance notice of material model or data-processing changes. ✓
    Advance notice enables the company to reassess evidence, responsibilities, and risks before continued production use.
  4. Require the supplier to maintain a current service description.
    A current description helps documentation, but does not ensure timely notice of changes requiring reassessment.
The trap
Choose the requirement that creates timely visibility of changes, not merely a standing assurance or periodic report.

How to remember it

Material-change notification is decisive because it triggers reassessment of supplier evidence, responsibilities, and risks before continued use.

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