AI Is Already in Your Tech Stack – But Does Your Vendor Contract Know?

By Nicole M. Thorn

Artificial Intelligence is no longer a future consideration—it’s already embedded in the platforms your organization uses every day. For healthcare executives, this quiet integration presents both opportunity and risk. The question is not if AI is in your tech stack, but where—and whether your vendor agreements reflect that reality.

Many healthcare technology vendors have incorporated AI into existing platforms without launching new products or making major announcements. These updates often come in the form of subtle changes—like pop-up windows prompting users to accept revised terms and conditions. This low-profile rollout makes it easy to overlook the legal and operational implications.

From a leadership perspective, the most pressing concerns are:

• Data Governance: Where does your data go during AI processing?

• Output Reliability: How accurate is the AI-generated content, and who is accountable for errors?

• Compliance: Are your vendor agreements aligned with HIPAA, state licensing laws, and evolving AI regulations?

In my work with healthcare clients, I’ve seen firsthand how AI can introduce ambiguity into contracts—especially around data use and liability. These are not new risks, but they are evolving rapidly. Executives must ensure that their organizations are not only aware of AI’s presence but are actively managing its impact.

If your organization is using AI—even as a feature within an existing platform—it’s essential to revisit your vendor contracts. Partnering with a healthcare attorney who understands both the legal landscape and the technology can help you stay compliant and protect your organization’s reputation.

Finally, a word of caution: while AI tools like ChatGPT can be useful, they are not a substitute for legal expertise. I’ve reviewed several AI-generated legal agreements recently, and most lacked critical provisions, failed to address applicable laws, and resembled incomplete term sheets. Revising these documents often takes more time than drafting them from scratch which can actually cost a client more money.

Key Takeaway:

AI is a powerful tool—but only when used with strategic oversight, legal diligence, and a human-in-the-loop approach. Don't be afraid to take it slow.

Note: AI assisted in drafting this post, but it was reviewed and finalized by a human.