TL;DR
- Before signing with any ai vendor, demand three clauses in writing or walk away from the deal.
- A named deliverable, a pre-deployment baseline, and an exit clause are non-negotiable contract requirements.
- If you skip these, you're the buyer who later reports no usable output and no recourse.
Picking an ai vendor without these three things in writing is how you end up paying for months of activity that never becomes output. Not bad luck. A predictable outcome.
Why Do So Many AI Vendor Deals Produce No Usable Output?
Because the contract never defined what output meant.
This is the pattern. A business owner gets a demo. It looks sharp. The pitch is confident. They sign. Weeks pass and nothing ships that they can point at. When they push back, the vendor gestures at work done rather than results delivered. The contract didn't say which was required.
It's not unique to AI. But AI makes it worse because the category is new enough that buyers don't know what to demand yet. Vendors know this. Some exploit it. Most don't mean to. But the outcome's the same either way.
Don't go into a vendor conversation hoping for good faith. Go in with a checklist.
What Is a Named Deliverable and Why Does It Matter With Any AI Vendor?
A named deliverable is a specific, measurable thing the ai vendor agrees to produce. Not a process. A thing.
"Implementation support" is not a deliverable. "A working voice agent that handles inbound qualification calls for your mortgage broker workflow" is a deliverable. The difference is whether you can look at the end date and say yes or no.
If your contract says the vendor will "build and configure AI systems to support your operations", that's a blank cheque for them and a dead end for you. Push for specificity. What does it do. For which workflow. By when. And what does done actually look like.
Vendors who push back on naming deliverables are telling you something important.
What Is a Pre-Deployment Baseline and Why Do You Need One Before Signing?
A pre-deployment baseline is a snapshot of your current performance, captured before the ai vendor touches anything. Without it, you can't prove the work moved the needle.
This matters more than buyers realise at the time of signing. If you don't know how many leads you were calling back manually, how long that was taking, or how many were falling through the cracks, you have nothing to compare the new system against. The vendor can tell you anything after deployment and you can't argue with it.
Capture the baseline yourself if the vendor won't ask for it. It takes a short conversation and a spreadsheet. Track the numbers that matter to your specific workflow before anything gets switched on.
For context on why production systems need proper state management to even surface these metrics, our post on why production agents store state in Postgres rather than the model covers the architecture decision behind accurate reporting.
Baseline data protects you. It also tells a serious vendor what good looks like. Both parties benefit.
Does Every AI Vendor Contract Need an Exit Clause?
Yes. Every single one.
An exit clause defines the conditions under which you can leave without penalty. It's not pessimism. It's basic commercial hygiene. Every mature vendor will have one. The ones who resist it are the ones you most need it with.
Here's what a reasonable exit clause covers:
- Ownership of any data, workflows, or configurations built during the engagement
- Notice period for termination
- What happens to your integrations if you leave
- Any lock-in tied to proprietary tooling or formats
This matters especially when an ai vendor builds inside a platform they also own. You want your CRM data, your call recordings, your prompt logic. In writing. Before you start. The ACMA doesn't care who built your outbound calling system. If it breaches compliance, it's your problem. Make sure you can access and audit it.
We ran into a version of this dependency problem from a different angle. It's worth reading about what model dependency actually costs when a tool goes dark mid-build.
Is This Checklist Actually Enough Before Engaging an AI Vendor?
It's the floor, not the ceiling. But most buyers don't even have the floor.
Three clauses won't catch every bad vendor. But they filter out most of the situations that end in frustration. If an ai vendor won't name a deliverable, won't support a baseline, and won't give you an exit, you've learned what you needed to know before any money changed hands.
Buyers who report no usable output almost always skipped one or more of these steps. It's not a coincidence. It's the predictable result of signing a contract that was never designed to produce anything specific.
Key Takeaways
- Every ai vendor contract needs a named deliverable. Vague scope is the vendor's friend and your problem.
- Capture a pre-deployment baseline before anything gets built. You can't prove ROI without a before.
- An exit clause is non-negotiable. Own your data, your logic, and your ability to leave.
If you're in finance broking, insurance, accounting, or real estate and you're about to sign with an ai vendor, or you already have and something feels off, DM AUDIT and I'll send you the five questions worth asking before it gets complicated.
Originally published at theautomate.io.
