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Much has been written about the importance of vetting technologies, offerings, and processes before entering into technology pilot or production agreements. However, organizations sourcing technology offerings often selectively neglect to fully investigate a potential provider’s risk in relation to conflicts of interest, financial integrity, and adherence to the law. The reason for this selective neglect may range from trying to avoid uncomfortable conversations to just not knowing what to ask. Nevertheless, the result of not investigating these areas of risk may result in negative impacts that are even greater than actual technology or offering failures.

While there are many due diligence checklists that can be used to help develop a complete list of reasonable questions for conflicts, finances, and the law, provided below are six uncomfortable questions that all sourcing organizations should consider asking their technology providers today.

1.  Is any member of your organization involved in any activity that may result in competing loyalties that could cause your organization to benefit at our expense?

2.  Is your organization prevented from engaging with any specific organization(s) by a contractual agreement, temporary restraining order, or a legal judgment?

3.  Has your organization withdrawn any publicly released announcements or materials because of the inability to substantiate claims?

4.  Does your organization have any unpaid federal, state, local or foreign income and employment taxes (as required) for the most recent three years of your organization’s existence?

5.  Is your organization involved in any current litigation or under the threat of potential litigation?

6.  Does your organization have any unsatisfied judgments?

These questions are by no means all-inclusive, however, they may be profitable for helping to proactively understand issues that might have great negative impact on your organization no matter how promising the technology or offering being sourced.

Google’s new umbrella company, Alphabet, does a strong job of seeking to address the inherent challenges of these often selectively neglected risk areas in its recently published Alphabet Code of Conduct. Providers in the information governance and legal technology space would do well to consider and learn from the areas addressed in Alphabet’s Code of Conduct and work to ensure the spirit of the code is addressed in their own business culture and policies. Additionally, organizations sourcing from technology providers would also do well to recognize the potential for risk in these areas and proactively initiate an uncomfortable but necessary conversation that might prevent unwanted future outcomes.

 

Generative Artificial Intelligence and Large Language Model Use

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ComplexDiscovery also provides a ChatGPT-powered AI article assistant for its users. This feature leverages LLM capabilities to generate relevant and valuable insights related to specific page and post content published on ComplexDiscovery.com. By offering this AI-driven service, ComplexDiscovery OÜ aims to create a more interactive and engaging experience for its users, while highlighting the importance of responsible and ethical use of GAI and LLM technologies.

 

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ComplexDiscovery OÜ is a highly recognized digital publication focused on providing detailed insights into the fields of cybersecurity, information governance, and eDiscovery. Based in Estonia, a hub for digital innovation, ComplexDiscovery OÜ upholds rigorous standards in journalistic integrity, delivering nuanced analyses of global trends, technology advancements, and the eDiscovery sector. The publication expertly connects intricate legal technology issues with the broader narrative of international business and current events, offering its readership invaluable insights for informed decision-making.

For the latest in law, technology, and business, visit ComplexDiscovery.com.