Evaluating AI Outputs Checklist for SLA & Service Credits

Quick Answer

Evaluating AI outputs effectively is crucial when negotiating Service Level Agreements (SLAs) and service credits. Use this checklist to ensure AI-generated data informs decisions without falling prey to inaccuracies or LLM hallucinations.

The Importance of Evaluating AI Outputs

In the realm of SLAs and service credits, accurate data is paramount. AI can assist in preparing for negotiations by providing insights and projections. However, AI outputs can sometimes be flawed or misrepresentative (commonly known as LLM hallucinations). Therefore, it’s essential to critically evaluate these outputs to ensure that they add value to your negotiation strategy.

Checklist for Evaluating AI Outputs in SLA & Service Credits Negotiation

Use the following checklist when assessing AI-generated data during your SLA and service credits negotiations:

1. Verify Data Sources

• Are the data sources used for generating AI outputs reliable and trustworthy?
• Have you reviewed the latest updates or versions of the data sources?

2. Cross-Check Outputs

• Have you compared AI outputs with historical data or industry benchmarks?
• Are there discrepancies that need further investigation?

3. Assess Contextual Relevance

• Does the AI output consider your specific business context and needs?
• Are the metrics relevant to the SLA terms you are negotiating?

4. Analyze Potential Hallucinations

• Are there any outputs that seem overly optimistic or unrealistic?
• Have you identified areas where the AI might have generated incorrect or fanciful information?

5. Solicit Expert Opinions

• Have you consulted with domain experts to validate AI insights?
• What do experienced negotiators think about the AI-generated data?

6. Test Scenarios

• Use negotiation simulations to see how AI outputs perform in real-world scenarios.
• Are the predictions consistent with expected outcomes?

7. Document Everything

• Keep records of AI outputs and your evaluations.
• How will you use this documentation in your negotiations?

Example Scenario: SLA Negotiation

Imagine you are negotiating a service agreement with a cloud service provider. Your current SLA guarantees 99.5% uptime, and you wish to negotiate this to 99.9%. Using an AI tool, you find a report predicting that your current provider can exceed this guarantee if certain conditions are met.

• Current Uptime Guarantee: 99.5%
• Target Uptime Guarantee: 99.9%
• Potential Service Credit: 10% of monthly fees for every hour of downtime beyond the agreed SLA.

Using the checklist, you cross-check the AI’s prediction against historical uptime data. You find that while the AI suggests a 99.9% guarantee is achievable, your provider's past performance only supports 99.6% reliably. This discrepancy informs your negotiation strategy, allowing you to focus on more realistic expectations and service credits.

AI Prompts to Practice

• “Analyze historical SLA performance data for similar services.”
• “What are common pitfalls in SLA negotiations?”
• “Generate a list of service credit structures used in the industry.”

Leveraging AI in SLA Negotiations

An AI negotiation co-pilot can enhance your preparation by providing tailored insights and simulations, making it a powerful tool for negotiating SLAs and service credits. Explore our features here to learn more.

Frequently Asked Questions

1. What should I do if AI outputs seem inaccurate?

Validate the outputs with historical data, consult experts, and adjust your negotiation strategy accordingly.

2. How can I ensure my SLA reflects realistic service levels?

Use the checklist to evaluate AI outputs, cross-reference with industry benchmarks, and consult with experienced negotiators.

3. What are service credits, and how do they work?

Service credits are financial compensations provided by a service provider when they fail to meet agreed-upon service levels. They are typically calculated based on the duration and severity of the service failure.

4. How often should I evaluate my AI tools for negotiation prep?

Regular evaluations are essential, especially whenever you change providers, product offerings, or negotiate new contracts.

5. Can AI completely replace the human element in negotiations?

No, while AI can enhance data analysis and preparation, the human element of negotiation—empathy, understanding, and relationship-building—remains irreplaceable.

Disclaimer

This article is for informational purposes only and does not constitute legal or financial advice.

Further Reading

• Use this Harvard Law checklist to prepare for any negotiation - qz.com
• Understanding BATNA: Your Best Alternative to a Negotiated Deal
• What is BATNA? How to Find Your Best Alternative to a Negotiated ...