Retain internal accountability while documenting vendor | AIGP
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Retain internal accountability while documenting vendor: Which distinction is decisive?

AIGP Understanding How to Govern AI Deployment and Use Medium

Contract terms allocate responsibilities or losses; they do not remove the deploying organization’s accountability for its use.

The question

A hospital uses an AI tool only to route administrative records and provide no clinical advice. The vendor contract includes indemnity provisions, but the hospital has not assigned internal oversight for deployment risks. Which distinction is decisive?

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  1. Create a review board covering every hospital technology system.
    A broad board may help governance, but its scope does not specifically establish accountable oversight for this deployment.
  2. Expand the vendor’s indemnity for routing errors.
    Indemnity may allocate financial exposure, but it does not create the hospital’s internal oversight or accountability structure.
  3. Retain internal accountability while documenting vendor responsibilities. ✓
    The hospital must govern its own deployment while clearly recording what the vendor is responsible for performing and reporting.
  4. Require the vendor to accept all compliance obligations.
    A vendor cannot be assigned every organizational governance responsibility merely through contract language or risk allocation.
The trap
Ask who makes and owns the deployment decision; contract language cannot answer that by itself.

How to remember it

Contract terms allocate responsibilities or losses; they do not remove the deploying organization’s accountability for its use.

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