Require material-change notice: Before the supplier replaces | AIGP
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Require material-change notice: Before the supplier replaces the underlying model and adds an external data

AIGP Understanding the Foundations of AI Governance Easy

Material-change notice enables reassessment when a supplier changes its model or data.

The question

An insurer uses a supplier’s claims-triage model for automobile claims. Before the supplier replaces the underlying model and adds an external data source, which contract provision most directly supports the insurer’s internal governance reassessment?

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  1. A benchmark report from the original model release
    The report concerns the earlier model and cannot establish suitability after the supplier changes the model or data source.
  2. A warranty of continuing supplier performance
    A warranty may allocate contractual responsibility, but it does not ensure timely information about changed model or data conditions.
  3. A multi-year renewal discount
    A discount changes commercial cost but does not give the insurer timely visibility into altered model or data risks.
  4. Require material-change notice ✓
    Advance notice lets the insurer reassess suitability, limitations, monitoring, responsibilities, and incident arrangements before continued use.
The trap
For supplier model or data changes, prioritize timely notice that enables use-specific reassessment.

How to remember it

Material-change notice enables reassessment when a supplier changes its model or data.

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