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Fortune 500s Negotiate Vendor AI Hallucination Liability

Enterprise Tech with Fexingo · 2026-07-15 · 11 min

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Topics in this episode

Fortune 500 procurementsoftware contract negotiationai hallucination liabilityvendor ai contractsai indemnification

Episode notes

Episode 113 of Enterprise Tech with Fexingo: Lucas and Luna dive into how Fortune 500 procurement teams are now writing AI hallucination liability clauses into enterprise software contracts. Using the specific case of a major bank that demanded a 40 percent discount after a vendor's AI assistant generated a false regulatory summary, the hosts break down the new contract language: warranty exclusions for model outputs, capped liability per hallucination event, and audit rights for training data provenance. They explore why vendors like Microsoft and Salesforce are pushing back on strict liability, while buyers are pushing for indemnification tied to model versioning. A concrete look at the newest front in enterprise procurement negotiations, anchored to Q3 2026 deal cycles. #AIHallucinationLiability #EnterpriseProcurement #Fortune500 #SoftwareContracts #Microsoft #Salesforce #AIIndemnification #ModelOutputWarranty #LiabilityClauses #VendorNegotiations #Business #Technology #FexingoBusiness #BusinessPodcast #EnterpriseTech #AIContracts #ProcurementStrategy #TechLaw Keep every episode free: buymeacoffee.com/fexingo

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