AI Vendor Evaluation Questions for Government: A Comprehensive Guide

Navigating AI Vendor Contracts: Key Questions for Local Governments

With the increasing integration of AI solutions in government operations, cities must be diligent when evaluating potential vendors. This guide outlines the essential questions to ensure compliance, efficiency, and protection of public interests, especially for cities without a dedicated IT department.

Understanding Data Retention Policies

Before engaging with an AI vendor, it's crucial to understand their data retention policies. Ask for documentation detailing how long data will be stored, the security measures in place, and how data will be disposed of at the end of the contract.

Training-on-Your-Data Opt-Out Options

AI vendors often use client data to train their models. Inquire whether the vendor provides an option to opt-out of this practice. Ensure there’s a clear understanding of how your data will be used in model training and the implications for data privacy.

Public-Records Implications

• Does the AI solution interact with public records?
• How does the vendor ensure compliance with local public-records laws?
• What are the provisions in case of a public-records request?

Understanding these implications helps in maintaining transparency and legal compliance.

Liability for Hallucinated Output

AI systems can occasionally produce incorrect or misleading information, known as 'hallucinations.' Clarify the vendor's policy on liability for such output. Determine who is accountable in the event of misinformation and what remedial actions will be taken.

Evaluating Vendor Support and SLAs

• What support is offered during and post-implementation?
• Are Service Level Agreements (SLAs) part of the contract?
• How are service failures or disruptions handled?

Concluding Your AI Vendor Assessment

Equipped with these questions, municipal leaders can make informed decisions about AI vendor partnerships. These criteria help ensure that the chosen AI solution aligns with city objectives, adheres to legal standards, and operates efficiently without native IT support.