<?xml version="1.0" encoding="utf-8" standalone="yes"?><rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:content="http://purl.org/rss/1.0/modules/content/"><channel><title>Vendors | Law Zava</title><link>https://lawzava.com/topics/vendors/</link><description>Field notes on board-level AI execution: operating models, technical leadership, reliability, governance, cost, and infrastructure discipline.</description><generator>Hugo</generator><language>en-us</language><lastBuildDate>Wed, 10 Jun 2026 15:02:13 +0000</lastBuildDate><atom:link href="https://lawzava.com/topics/vendors/index.xml" rel="self" type="application/rss+xml"/><item><title>The AI Vendor Negotiation Playbook for CTOs</title><link>https://lawzava.com/blog/2026-06-09-ai-vendor-negotiation-playbook/</link><pubDate>Tue, 09 Jun 2026 00:00:00 +0000</pubDate><guid>https://lawzava.com/blog/2026-06-09-ai-vendor-negotiation-playbook/</guid><description>Vendor leverage in AI comes from architecture readiness, eval data, and exit credibility — not procurement theater.</description><content:encoded><![CDATA[<p>Use this before any AI vendor contract renewal, initial procurement, or pricing negotiation. Most CTOs walk in under-prepared — the vendor knows your dependency footprint better than you do. This worksheet closes that gap. Work through it the day before the meeting.</p>
<hr>
<h2 id="1-workload-facts-you-must-have">1. Workload Facts You Must Have</h2>
<p>The vendor’s first move is to define your usage for you. Don’t let them.</p>
<ul>
<li><input disabled="" type="checkbox"> Total request volume per month, broken out by use case
<em>A single aggregate number is not enough. Know which workflows drive cost.</em></li>
<li><input disabled="" type="checkbox"> Cost per task class (e.g., generation vs. classification vs. retrieval)
<em>If you cannot name your top three cost drivers, you cannot challenge the invoice.</em></li>
<li><input disabled="" type="checkbox"> Latency p50/p95 by workflow, measured from  <a href="/blog/2025-03-31-ai-observability-deep/"
   
   >your own instrumentation</a>

<em>Vendor SLAs are measured at their edge, not yours.</em></li>
<li><input disabled="" type="checkbox"> Percentage of spend attributable to this vendor vs.  <a href="/blog/2026-04-16-ai-capital-allocation-what-to-stop-funding/"
   
   >total AI budget</a>

<em>Concentration creates leverage — for them. Know the number.</em></li>
<li><input disabled="" type="checkbox"> Named owner of the vendor relationship on your side
<em>If no one owns it, no one negotiates it.</em></li>
</ul>
<h2 id="2-architecture-leverage-check">2. Architecture Leverage Check</h2>
<p>Leverage is an architecture property. Answer these before you sit down.</p>
<ul>
<li><input disabled="" type="checkbox"> Is the vendor’s API called directly from product code, or through an  <a href="/blog/2024-03-18-multi-model-strategies/"
   
   >abstraction layer</a>
?
<em>Direct calls = switching costs measured in months. Abstraction = measured in days.</em></li>
<li><input disabled="" type="checkbox"> How many distinct integration points does this vendor touch?
<em>Write the number. Fewer than five is manageable. More than ten is a dependency.</em></li>
<li><input disabled="" type="checkbox"> What is the estimated engineering cost to swap this vendor?
<em>Get a real estimate, even a rough one. &ldquo;Unknown&rdquo; is not an answer.</em></li>
<li><input disabled="" type="checkbox"> Do you have a secondary provider you have already integrated, even partially?
<em>Yes/No. If no, you have no credible threat.</em></li>
<li><input disabled="" type="checkbox"> Does your data pipeline depend on vendor-specific formats or  <a href="/blog/2023-07-10-embedding-models-deep-dive/"
   
   >embeddings</a>
?
<em> <a href="/blog/2026-05-14-build-the-system-the-model-cannot-break/"
   
   >Format lock-in</a>
 is often more expensive than API lock-in.</em></li>
</ul>
<h2 id="3-evaluation-evidence">3. Evaluation Evidence</h2>
<p>Vendors sell on benchmark claims. Counter with your data.</p>
<ul>
<li><input disabled="" type="checkbox"> Do you have  <a href="/blog/2026-04-23-ai-evaluation-maturity/"
   
   >evals that measure model performance on your actual workload</a>
?
<em>Yes/No. If no, you are buying on their terms by default.</em></li>
<li><input disabled="" type="checkbox"> Which models have you tested against your task suite in the last 90 days?
<em>List them. If the answer is only theirs, you have no comparison point.</em></li>
<li><input disabled="" type="checkbox"> What is your acceptable quality threshold, defined numerically?
<em>&ldquo;Good enough&rdquo; is not a threshold. A number is.</em></li>
<li><input disabled="" type="checkbox"> Have you run a  <a href="/blog/2024-10-14-ai-cost-benchmarking/"
   
   >cost-per-correct-output comparison</a>
 across providers?
<em>Price per token is a distraction. Price per correct result is the metric.</em></li>
<li><input disabled="" type="checkbox"> Who owns your eval framework and can demo it in the meeting if needed?
<em>Named person, not a team.</em></li>
</ul>
<h2 id="4-exit-credibility">4. Exit Credibility</h2>
<p>A vendor that believes you cannot leave does not negotiate. Make them uncertain.</p>
<ul>
<li><input disabled="" type="checkbox"> Do you have a documented migration plan, even a sketch?
<em>It does not need to be final. It needs to exist.</em></li>
<li><input disabled="" type="checkbox"> What is your contractual notice period to exit?
<em>Know this before they remind you of it.</em></li>
<li><input disabled="" type="checkbox"> Have you identified which vendor you would move to first if pricing increased 40%?
<em>Name them. Vague alternatives are not alternatives.</em></li>
<li><input disabled="" type="checkbox"> Is there a sunset timeline for any features that are vendor-exclusive today?
<em>If yes, the vendor knows your dependency has an expiration date.</em></li>
<li><input disabled="" type="checkbox"> Can your team absorb a two-week migration sprint without derailing the roadmap?
<em>Yes/No. Honest answer only.</em></li>
</ul>
<hr>
<p>If you cannot fill in the workload numbers, you are not done preparing — you are about to negotiate against someone who has already modeled your spend. If you have no eval data, you will accept their performance claims by default. If there is no exit plan, any number they name is essentially a take-it-or-leave-it offer. The meeting itself is the wrong place to discover these gaps. Thirty minutes with this worksheet before you walk in is worth more than any negotiation tactic once you are in the room.</p>
]]></content:encoded></item></channel></rss>