It should be a routine contract renewal. But as part of the process, your customer has sent a standard letter asking for details on two key questions:
Such letters are increasingly common and when one arrives is not the best time to be just starting to think about these questions. Your customer is looking for a plan and also evidence that it has been operating for some time. A document that was downloaded from the Internet yesterday probably won’t cut it.
Many companies, particularly larger ones, are required by their regulators,
shareholders or boards to formally review their AI risk. Their internal processes they can control, but attention is increasingly moving towards the supply chain. Large companies don’t want to import AI risk from their suppliers. So, they need evidence that reasonable steps are being taken, there is a clear process should something go wrong and, if there are gaps, at the very least there is a credible plan to address them.
Enhanced vendor management that takes into account AI is increasingly being deployed as a mandatory requirement. You may have a long-standing supply arrangement with a major customer but that can be put on hold, or worse, cancelled if your company is deemed to be a risk. Typically companies will provide perhaps two weeks to respond to a request. That is plenty of time to respond if you have done the groundwork but very unlikely to be sufficient if you are starting from scratch (particularly if the company is looking for evidence of ongoing management).
The processes are broadly the same for all AI management projects and will resonate with organisations that have formal data protection processes in place.
Typically you will be required to demonstrate:
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