Large Language Model (LLM) Implementation Plans

This question asks whether the vendor currently uses AI chatbots or text-generation technology (like ChatGPT) in their product, or if they're planning to add these features within the next year. It's about understanding if artificial intelligence that can understand and generate human-like text is part of their technology stack. The question helps you assess potential AI-related risks and opportunities before they become part of your business operations.

Understanding a vendor's LLM usage is critical for risk management and compliance. If your vendor uses or plans to use LLMs, you need to know about potential data privacy concerns, accuracy issues, and regulatory implications. This affects your procurement decisions, data governance policies, and customer trust. Companies using LLMs without proper disclosure could expose you to unexpected liabilities, while those with transparent AI strategies can offer competitive advantages through enhanced automation and customer experiences.

Many vendors make the mistake of being vague about their AI plans or overstating their capabilities. Some claim they'll implement LLMs 'soon' without concrete timelines or understanding of the technical requirements. Another common error is failing to distinguish between using third-party LLMs (like OpenAI's services) versus developing proprietary models, which have vastly different security and compliance implications.