Categorizing AI Tools to Calibrate Contract Terms and Third-Party Risk Management Controls

Day Pitney Technology Counsel Laura Land Himelstein recently authored an article for the New York Law Journal titled, “Categorizing AI Tools to Calibrate Contract Terms and Third-Party Risk Management Controls.”

In the article, Himelstein outlines a framework for classifying AI tools into three categories—deterministic, probabilistic, and agentic—to help organizations manage the legal, operational, and regulatory risks of each type. She details how proper categorization enables organizations to tailor contract terms and risk controls, avoid overemphasis on low-risk tools, and focus resources on higher-risk technologies to effectively harness the power of AI.

Read the full article here.