Final exam: AI Procurement Training: Buying AI With Contracts and Evidence That Protect You

What key difference exists between buying traditional software and buying an AI system?

AI systems have fixed outputs regardless of input data, while software varies

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AI system performance depends on the data it receives in production, while traditional software has defined functionality

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AI systems are always cheaper than software

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AI systems never require contracts

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Under the EU AI Act, what is the primary difference between a deployer and a provider of AI?

A deployer creates new AI systems, a provider buys them

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A provider develops or supplies AI systems, a deployer uses AI systems

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There is no difference between deployer and provider

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A provider only works with large language models

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Why is the requirement ‘the system must be accurate’ insufficient for AI procurement?

Accuracy is not important for AI systems

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It does not specify a measurable target, so you cannot test whether the supplier met the requirement

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All AI systems are always accurate

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Accuracy only matters for traditional software

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Why is asking a vendor ‘Is your system compliant?’ a poor due diligence question?

Compliance is not important

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It is too specific

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Vendors will answer yes regardless of whether compliance is certain, so it does not reveal meaningful information

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Compliance questions are not part of due diligence

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What is the main purpose of a model card?

To replace all other documentation

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To summarise the model's purpose, training data, performance and known limitations

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To provide legal liability information only

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Model cards are not important for procurement

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Why are vendor demonstrations unreliable for assessing AI system performance?

Demonstrations are always accurate

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Vendors prepare demo data they know the system handles well, creating a biased impression

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Demonstrations do not matter for procurement

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All demonstrations show system failures

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Why is it important to specify whether a vendor can use your data to train models for other customers?

This specification is not important

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Vendors should always be allowed to use your data for other customers

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Your proprietary data could indirectly benefit competitors if the vendor trains other companies' models on it

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Data sharing is never a concern

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If an AI system generates product descriptions for your e-commerce site, who should own the output?

The vendor always owns output

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You should own the output exclusively and have the right to use it without vendor restrictions

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Output should have no owner

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Ownership depends only on vendor preference

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What does a performance commitment specify?

Only the vendor's name and location

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The metric, the target level and the measurement method for system performance

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Performance commitments are not necessary

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Only the price of the system

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What risk does a contract with unlimited update authority create?

Updates are always beneficial

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No risk exists with unlimited updates

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Vendors can change your system without notice or approval, potentially degrading performance or breaking integrations

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Updates are irrelevant to procurement

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Final exam: AI Procurement Training: Buying AI With Contracts and Evidence That Protect You

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