An organization is updating its vendor arrangements to facilitate the safe adoption of AI technologies. Which of the following would be the PRIMARY challenge in delivering this initiative?

The correct answer is C. Unwillingness of large AI companies to accept updated terms. Large AI companies (e.g., OpenAI, Google, Microsoft) hold significant market power and operate under standardized, non-negotiable terms of service. Organizations seeking to update vendor contracts to include AI-specific risk clauses-such as data privacy protections, liability lim

AI Security Strategy and Governance

Question

Options

AFailure to adequately assess AI risk
BInability to sufficiently identify shadow AI within the organization
CUnwillingness of large AI companies to accept updated terms
DInsufficient legal team experience with AI

How the community answered

(29 responses)

A
14% (4)
B
3% (1)
C
79% (23)
D
3% (1)

Explanation

Large AI companies (e.g., OpenAI, Google, Microsoft) hold significant market power and operate under standardized, non-negotiable terms of service. Organizations seeking to update vendor contracts to include AI-specific risk clauses-such as data privacy protections, liability limitations, or audit rights-will typically find that these hyperscale providers refuse custom terms. The other options represent internal organizational challenges (risk assessment, shadow AI discovery, legal expertise) that are within the organization's control to address, making the unwillingness of large AI vendors the primary external blocker.

Topics

#Vendor Management#AI Governance#Contract Negotiation#Vendor Risk

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