Require material-change notice: What contract term closes | AIGP
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Require material-change notice: What contract term closes the governance gap?

AIGP Understanding the Foundations of AI Governance Medium

Material-change notice exposes supplier modifications so governance owners can reassess evidence, risk, and continued approval.

The question

A software supplier hosts an AI coding assistant used in internal production systems. The proposed contract addresses uptime and confidentiality but does not require notice when the supplier changes the model, training sources, or safety controls. What contract term closes the governance gap?

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  1. Require quarterly uptime reports and service credits.
    Availability reporting manages service performance but does not reveal changes to model, data, or safety controls affecting AI risk.
  2. Require annual recertification of the assistant’s original benchmark results.
    Repeating original benchmarks may miss changed training sources, controls, and deployment behavior outside the benchmark scope.
  3. Require a supplier warranty covering all future model behavior.
    A broad warranty cannot substitute for timely information about changes or guarantee safe performance across evolving production uses.
  4. Require material-change notice. ✓
    Notice enables the organization to assess changed dependencies, evidence, risks, and approval needs before continued use.
The trap
When the gap is supplier opacity about changes, choose a notification obligation rather than a generic assurance.

How to remember it

Material-change notice exposes supplier modifications so governance owners can reassess evidence, risk, and continued approval.

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