Plain English Explanation
This question asks whether your software currently uses artificial intelligence, machine learning, or similar technologies - or if you're planning to add them within the next year. This includes everything from simple chatbots and recommendation engines to complex predictive analytics and generative AI features. They want to know if AI is processing their data, making decisions, or generating content. Even using third-party AI services like OpenAI's APIs counts. The 12-month forward look helps them assess future risks and prepare for upcoming changes.
Business Impact
AI features can be a powerful differentiator but introduce new risks that security-conscious buyers carefully evaluate. Concerns include data privacy (is customer data training your models?), decision transparency (can you explain why the AI made a choice?), bias and fairness, and potential for AI-generated errors or hallucinations. Regulatory scrutiny is intensifying globally, with the EU AI Act and similar regulations creating new compliance requirements. Being transparent about AI use builds trust and helps you navigate procurement. Hidden or poorly governed AI features can become deal-breakers, especially in regulated industries where explainability and accountability are mandatory.
Common Pitfalls
The biggest mistake is not recognizing what counts as 'AI features' - even basic automation or rule-based systems might be considered AI by non-technical evaluators. Another pitfall is adding AI features without considering data governance implications, especially when using customer data for model training or improvement. Companies also fail to plan for AI-specific security reviews, which are becoming standard in enterprise procurement. Being vague about future AI plans backfires when customers discover new features that process their data without prior notice.
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Question Information
- Category
- Requirements
- Question ID
- REQU-04
- Version
- 4.1.0
- Importance
- Standard
- Weight
- 5/10
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