Appendix C-AI - April 25.pdf
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- Solicitation number
- 2137738
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- New York
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This document is the Standard Terms for AI Purchases (Appendix C-AI) issued by the New York State Office of Information Technology Services (ITS) for incorporation into state contracts involving artificial intelligence technologies, effective April 2025. The appendix establishes mandatory requirements for any vendor or contractor utilizing AI in software, hardware, or communications with the State, its employees, contractors, or the public. Vendors must provide written notice to ITS at least 90 days prior to implementing any AI technology, including detailed descriptions of the AI's purpose, connections to State systems, deployment timeline, and implementation methodology. For AI tools not integral to contracted systems, AI functionality must be disabled by default and requires explicit written approval from ITS before activation. ITS retains the right to terminate contracts at no cost if AI tools are deemed unacceptable and cannot be disabled.
The terms impose strict compliance requirements aligned with New York State policies, local, state, and federal laws governing AI use, security, and privacy. Vendors are prohibited from using State confidential information or data acquired through State contracts to train AI systems without prior written authorization from the information owner, with limited exceptions for training that directly supports the State's own AI usage. AI transcription capabilities must similarly be disabled by default unless specifically requested by ITS. The State retains exclusive ownership of all data, prompts, uploaded content, and outputs generated through AI tools, and vendors are expressly forbidden from using such materials to train, retrain, or improve any AI models or from sharing State data with third parties. ITS may require vendors to provide independent audit reports, AI impact assessments per National Institute of Standards and Technology standards, and documentation demonstrating the explainability of AI solutions to ensure compliance with applicable regulations and policies.
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APPENDIX C-AI
Standard Terms for AI Purchases for NYS Office of Information Technology Services
PLEASE RETAIN THIS DOCUMENT
FOR FUTURE REFERENCE
STANDARD CLAUSES FOR NYS CONTRACTS APPENDIX C-AI
Page 2 of 3 April 2025
1) New York State AI Policy
For further information on New York State’s AI policy, please refer to New York State Information Technology Policy No: NYS-P24-001 “Acceptable Use of Artificial Intelligence Technologies,” or any predecessor policies.
2) Notice Vendor shall provide ITS with notice of the use of artificial intelligence. Such notice shall be clear and unambiguous. AI-specific terms should be explicitly defined and presented separately from the general terms and conditions to ensure clarity and transparency. If new AI terms are included, AI will be clearly described by vendor to the ITS. Contractor or Vendor agrees to provide ITS with written notice at least 90 days prior to the implementation or use of any artificial intelligence (AI) technology in Contractor or Vendor's software, hardware, or in any dealings or communication with the State, the State’s employees, contractors or consultants, public users, members of the public, or data-subjects. Such notice shall include a detailed description of the AI technology to be used, its intended purpose, its connections with the State, when the AI will be deployed within a tool, whether that AI is open-source, and how the AI will be implemented. ITS reserves the right to request additional documentation related to AI prior to or while the AI is in use.
3) Approval for AI Usage For AI tools not integral to the system, AI tools should be disabled by default. Any AI usage must be approved, in writing, by ITS. After analysis, should ITS deem the AI unacceptable and AI functionality cannot be disabled, ITS reserves the right to terminate contract at no cost.
4) Compliance The use of AI must comply with all applicable policies and standards set forth by New York State, as well as local, state, and federal laws. This includes compliance with regulations related to AI use, security, privacy, and any other laws, regulations, and standards concerning technology that employs AI. ITS may require vendor to provide reports that are necessary for auditing purposes by third parties. Reports should include how the AI system uses personally identifiable, confidential, or sensitive information to ensure such use complies with applicable laws, rules, regulations, notices, and policies. The Vendor may be asked to provide a recent independent audit report or, artificial intelligence (AI) impact assessment as defined by the National Institute of Standards and Technology (NIST) if solution incorporates AI. Vendor may be asked to provide information detailing the explainability of the artificial intelligence solution.
5) AI Training Data Usage Prohibition Vendor shall not employ State Confidential Information or Data acquired through working with the State or providing services to the State to train AI systems without obtaining prior written approval from the information owner, which may include Authorized User. If data is identified and non-aggregate, ITS should have prior notice that their information will be used for this purpose. The intended usage of such data for AI training must align with existing data usage rights, and the vendor shall ensure that data privacy and security are maintained throughout the process. If vendor intends to use any data for training purposes, they must have explicit authorization from ITS. A vendor may obtain an exception to allow for training with the State’s data if that training is being used solely in support of the State’s use of AI.
6) Transcription Tools AI transcription capabilities should be disabled by default, unless specifically requested by ITS. Users should be made aware of any loss of capabilities and usability if those transcription tools are disabled. Transcription capabilities include the ability to transcribe, summarize, or analyze any meetings, discussions, or proceedings.
STANDARD CLAUSES FOR NYS CONTRACTS APPENDIX C-AI
Page 3 of 3 April 2025
7) Data Ownership Data derived from AI outputs is owned by the State. All Prompts, Uploaded Content, and Outputs created using the AI tool shall remain the exclusive property of the State. The Vendor shall not use Prompts, Uploaded Content, or Outputs to train, retrain, tune, or improve any AI model. The Vendor shall not store, retain, or repurpose the State's data for any purpose other than providing the contracted services. The vendor shall not share or distribute the State's data with any third parties.
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