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Corporate Governance

The AI Question in the Room: What UK Clients Should Establish Before Work Begins

NHD Partners
The AI Question in the Room: What UK Clients Should Establish Before Work Begins

Photo: Daniel Edler (MillwallDan85), CC BY-SA 4.0, via Wikimedia Commons

By 2026, artificial intelligence has become an ordinary part of professional service delivery. It sits inside drafting tools, research workflows, document review, data analysis and the administrative machinery that keeps client work moving. For UK buyers, the practical question is no longer whether a supplier uses AI. It is whether the buyer understands where that use matters, how it is controlled and who remains answerable when something goes wrong.

That is not a technology audit. It is a governance conversation, and it belongs in the same part of the procurement process as any other question about method, controls and accountability. The aim is not to catch a supplier out or to demand a tour of every tool in its stack. It is to establish enough clarity to make an informed decision.

Five questions provide a workable structure. They are deliberately broad enough to suit different professional services, and specific enough to produce answers that can be recorded, compared and revisited.

1. Where is AI used, and who decides?

A useful answer separates categories of work. A supplier might use AI for initial research, summarisation, drafting support, data classification or quality sampling. It might use it internally, in client-facing outputs, or both. The buyer does not need a product list. The buyer needs to know where AI touches the work and who is responsible for approving its use.

A reassuring answer is specific but proportionate. It names the areas of work, the roles that authorise use, and the route by which a new tool or use case is reviewed. It may also distinguish between tools embedded in established software and tools adopted for a particular engagement. A weak answer is either a blanket denial that is difficult to believe or a vague assurance that AI is used to improve efficiency without saying where or under whose authority.

Disclosure should not become a disclosure burden. The test is whether the buyer can see the shape of the supplier’s approach and whether the supplier can explain its own decisions.

2. What data enters the tool, and what happens to it?

This is where UK buyers should be most attentive. AI tools may process client information, personal data or commercially sensitive material. The supplier should be able to explain what categories of data are permitted, what is excluded, where processing occurs and what contractual terms govern subprocessors.

A reassuring answer reflects familiar UK GDPR disciplines: data minimisation, lawful basis where relevant, retention limits, access controls and a clear position on whether client data is used to train models. It should also cover deletion and the supplier’s ability to demonstrate that deletion has happened. A weak answer relies on reassurance alone, such as saying that client data is never used in a public model, without explaining the safeguards that make that true in practice.

The buyer is not asking for a data protection audit. The buyer is asking whether the supplier has a documented route for handling sensitive information and whether that route is followed when AI is in the workflow.

3. What quality checks apply to AI-assisted output?

AI can accelerate work, but acceleration is not the same as assurance. The buyer should ask how AI-assisted output is checked before it reaches the client. Who reviews it? What is verified against source material? What happens when a draft contains an error, an unsupported statement or a plausible but incorrect reference?

A reassuring answer describes a method. It may include named review responsibilities, sampling, source verification, escalation routes and a process for correcting errors. It should distinguish between work that is merely assisted and work that is materially generated, because the level of scrutiny should reflect the risk.

A weak answer is that the model is accurate or that everything is reviewed. Neither statement tells the buyer what review means. The better answer is modest and concrete: here is what we check, here is who checks it, and here is what we do when a check fails.

4. Who is accountable when AI contributes to an error?

Responsibility should not drift towards the tool. The supplier remains accountable for the service it provides, including the quality of its outputs and the conduct of its people. AI may change how work is done, but it does not transfer professional responsibility to a software vendor.

A reassuring answer confirms that accountability sits with the supplier, that incidents are handled through a defined process, and that the buyer will be informed when an AI-related issue has a material effect on the work. It should also align with the supplier’s professional indemnity arrangements and its internal escalation route.

A weak answer shifts blame to the model, the platform or the pace of technological change. That is not a governance position. It is an avoidance of one.</n

5. How is AI reflected in pricing and scope?

The buyer should not assume that AI-driven efficiency must be passed on pound for pound. Pricing is a commercial matter, and suppliers are entitled to charge for outcomes, expertise and risk. But the buyer is entitled to clarity about what is being purchased and what assumptions sit behind the price.

A reassuring answer explains whether AI changes the scope, the level of human involvement, the speed of delivery or the risk profile. It is transparent about any AI-related costs, such as specialist tooling or additional review. It also makes clear how changes in AI use during an engagement will be handled.

A weak answer is silence followed by a later claim that AI has transformed the service without any corresponding discussion of value, risk or scope. The point is not to demand a discount. The point is to understand the commercial logic.

What good looks like

The strongest responses to these questions will not be lengthy. They will be specific, documented and consistent with the contract and the supplier’s ordinary ways of working. They will show that the supplier has thought about AI as a governed part of service delivery rather than a background convenience.

For UK buyers, the goal is a proportionate conversation held early enough to influence the proposal. Ask the five questions, record the answers, and check whether they match what the contract says about data, quality and accountability. A supplier that can answer clearly is easier to trust not because it has perfect technology, but because it has a defensible approach.

NHD Partners advises organisations to treat AI disclosure as part of ordinary governance, not as a specialist obstacle course. The question in the room is simple: who is responsible for the work when the tool is involved? A good supplier will know the answer.

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