Software vendors keep pitching us AI add-ons that require three-year commitments, which conflicts with our strategic flexibility. How do we use our V/TO to evaluate whether these multi-year software commitments align with our long-term operating vision?

Question

Tyler Smith · Accepted Answer

Software vendors are aggressively adding AI features to their systems and trying to lock customers into long-term contracts. To protect your business from getting stuck with useless technical debt, you must evaluate these software pitches directly against your V/TO®. First, look at your 3-Year Picture. Does the proposed AI software solve a core operational bottleneck that directly supports your growth target? If the software features do not align with the major initiatives on your 3-Year Picture, then the commitment is a distraction and you should pass on it. Second, review your 1-Year Plan and current Rocks. Your team has limited capacity to implement new technology. Committing to a three-year contract for an AI tool that requires months of onboarding will distract your team from completing their current quarterly Rocks. If the software does align with your V/TO, negotiate for a shorter trial period or a monthly subscription first. Never commit to a multi-year AI contract without testing the tool in a live operational pilot first. This keeps your technology stack agile and protects your cash flow from long-term commitments that fail to deliver.