AI Spend Is Not a Feature. It's a New Spend Category.
Most organizations are treating AI as an enhancement buried inside existing agreements. That assumption is already costing them visibility, leverage, and control.
How AI Hides in Vendor Contracts
AI spend rarely appears as a clean budget request labeled "AI." Instead, it shows up in subtle ways: add-on SKUs introduced mid-term, bundled capabilities tied to base price increases, and usage-based pricing with unclear thresholds.
Embedded Pricing
Bundled "included" capabilities that quietly become paid features at renewal or add-on SKUs introduced mid-term.
Usage Thresholds
Consumption-based pricing with unclear limits, leading to automatic entitlement expansions and financial exposure.
Data Rights Leakage
New terms embedded in standard updates that grant vendors training rights on your proprietary data without explicit review.
Why Traditional Functions Miss the Picture
Because AI cuts across every category, no single function typically owns the holistic commercial view.
AI Governance Is a Procurement Problem
The opportunity is not just negotiating discounts. It is creating visibility and decision signals before costs compound.
Identify where AI is embedded across HR, IT, Legal, and Finance platforms to create a centralized view.
Distinguish between explicit charges, implicit bundles, and usage-based triggers.
Map where data training rights have been granted versus where they must be restricted.
Identify which AI features are licensed but unused to prevent waste before renewal.
The Questions Leadership Needs Answered
A focused procurement-led approach moves the conversation from reactive approval to proactive strategy by answering these core questions.
Identify redundancy between standalone AI tools and embedded features in existing platforms.
Flag agreements where vendors can change AI pricing or feature sets without a signature.
Audit standard terms to see where training rights have been conceded by default.
