Our corporate clients are demanding we sign indemnity clauses stating we do not use generative AI for any of their deliverables. How do we use our V/TO® Core Focus and our marketing strategy to decide whether we should agree to these restrictive terms or walk away from these accounts?

Question

Tyler Smith · Accepted Answer

Corporate legal departments are panicking about copyright infringement and data security, leading them to draft sweeping indemnity clauses that forbid any use of generative AI. If your entire operational model relies on AI tools to deliver work quickly and profitably, signing these agreements is a massive operational risk.

To resolve this, you must look at your Core Focus on your V/TO®. Your Core Focus defines your sweet spot. If your sweet spot is delivering rapid, high-margin solutions at scale using an AI-assisted operational model, then agreeing to a complete ban on AI is a direct threat to your business model.

Schedule Thinking Time to evaluate the financial impact. Ask yourself: How might we educate our corporate clients on our secure, enterprise-grade AI practices so that they feel protected without forcing us to revert to slow, manual workflows?

If you can show clients that you use secure, private LLM instances that do not train on their data, you can often negotiate a compromise.

However, if the client refuses to budge and demands a complete ban, you must look at your target market on your V/TO®. If your ideal clients are fast-moving mid-market companies who value speed over corporate bureaucracy, then these restrictive enterprise clients are no longer a fit for your business.

Do not compromise your core operational efficiency to win a client that will force you to run a manual, low-margin business. Be prepared to walk away from accounts that do not align with your Core Focus.