How Fortune 500s Negotiate AI Model Regulatory Change Clauses

Enterprise Tech with Fexingo · 2026-08-24 · 7 min

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Topics in this episode

Enterprise software contracts EU AI Act compliance ai contract negotiation fortune 500 ai procurement regulatory change clause

Episode notes

Episode 165 of Enterprise Tech with Fexingo: Lucas and Luna dig into the quiet but powerful contract clause that Fortune 500s are adding to their enterprise AI agreements - the regulatory change clause. When new laws like the EU AI Act or state-level data privacy rules shift mid-contract, who pays for compliance? Lucas walks through a recent negotiation where a large financial services firm secured the right to suspend a vendor's AI model if new regulations made its use unlawful, without paying early termination fees. They explore how these clauses differ across sectors, why vendors push back on audit rights tied to regulatory overreach, and how procurement teams are using them to stay ahead of the legal curve. The conversation also touches on the rise of 'regulatory escrow' and what it means for the future of AI procurement. If you're buying or selling AI software, this is a must-hear for staying ahead of the compliance wave.

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