1. Introduction
At Vendorfi, we use Artificial Intelligence (AI) and Machine Learning (ML) to help organizations automate manual procurement tasks, identify risks, and uncover savings opportunities. This AI Policy explains our approach to AI development, how we protect your data, and the controls available to you.
2. AI-Assisted Workflows
We integrate AI into specific areas of the Vendorfi platform to enhance decision-making and efficiency:
- Intake Summarization: AI analyzes complex vendor requests to extract key requirements and stakeholders.
- Contract Intelligence: Automated extraction of notice periods, renewal dates, and commercial terms from uploaded PDFs.
- Spend Analysis: Identifying duplicate vendors, license overlap, and categorization of GL spend.
- Risk Detection: AI-driven cross-referencing of vendor data against security benchmarks and compliance requirements.
3. Data Handling and Privacy
Your data security and privacy are our highest priorities. Our AI implementation follows these core principles:
- No Training on Customer Data: We do not use your proprietary data, contracts, or private workflows to train global AI models that are shared with other customers.
- Data Isolation: AI processing occurs within secure, isolated environments. Data processed by AI models remains under the same strict access controls as the rest of the Vendorfi platform.
- De-identification: Where possible, we strip PII (Personally Identifiable Information) before sending data for secondary AI processing.
4. Security and Auditability
All AI-driven features are subject to our enterprise-grade security standards:
- Encryption: Data is encrypted at rest (AES-256) and in transit (TLS 1.2+).
- Audit Logs: Every AI-generated insight or automated action is logged, allowing you to trace the "why" behind any recommendation.
- Human-in-the-Loop: AI is designed to augment, not replace, human judgment. Significant procurement decisions always require manual review and approval by an authorized owner.
5. Customer Control and Transparency
We believe in giving you full control over how AI interacts with your procurement lifecycle:
- Opt-out Capability: Customers can choose to disable specific AI-powered features within their organization settings.
- Clear Labeling: AI-generated content or recommendations are clearly labeled within the UI to distinguish them from human-inputted data.
- Accuracy Verification: We provide tools for users to easily verify and correct any AI-extracted contract data or spend categorization.
6. Third-Party AI Sub-processors
Vendorfi may use established third-party AI service providers (such as OpenAI or Anthropic via secure VPC integrations) to power platform features. These providers are vetted for SOC2 compliance and are bound by strict Data Processing Agreements (DPAs) that prohibit the use of our customer data for their own model training.
7. Changes to This Policy
As AI technology and regulations evolve, we may update this policy. We will notify customers of significant changes via email or platform notifications, and the "Last updated" date at the top of this page will be updated accordingly.
8. Contact Us
If you have questions about our use of AI or would like to request a detailed security whitepaper, please contact us at security@vendorfi.com.