Agentic AI Contracts: Runaway Costs & Limited Recourse

Agentic AI contracts expose organizations to runaway costs with limited recourse. That's according to Info-Tech Research Group. Here's the thing: Agentic AI shifts software costs from per-seat licensing to consumption-based billing. This means costs can quickly spiral due to machine-driven tasks that are hard to forecast. Vendors often define the billable events, control usage meters, and determine pricing logic. What's interesting is that a single user prompt can trigger many billable events, like tool calls and recursive reasoning loops. Billing definitions are often in vendor-controlled documentation, not the signed contract. Pricing logic can also change with notice, and audit rights or hard caps are frequently missing. Info-Tech Research Group's blueprint, "Negotiate Safe AI Contracts to Prevent Bill Shock," offers a framework for leaders to evaluate contract exposure and define financial guardrails before signing. Clear definitions, consumption caps, audit rights, and pricing-change protections must be negotiated upfront. The bottom line: Without proper safeguards, organizations face high switching costs and lost renegotiation leverage once AI workflows are embedded.