AI Predictive Maintenance in the Manufacturing and Supply Chains: Contract Strategies to Reduce Downtime and Liability
· Source: foley.com
In short
This article examines the rapid adoption of AI-powered predictive maintenance across the automotive supply chain, highlighting the operational benefits of reducing unplanned downtime and optimizing maintenance schedules. It provides a detailed legal and contractual analysis, focusing on performance metrics, data quality allocation, liability caps, and consequential damages carve-outs that suppliers should negotiate to mitigate risks when AI systems fail. The piece underscores the growing legal exposure for suppliers as AI vendor agreements, often drafted to protect software providers, clash with traditional supply chain contract structures.
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In the issue of week 19, 2026: AI-Driven Platforms Boost Resiliency and Efficiency Across Global Supply Chains
Tags: predictive maintenance, supply chain, contracts, liability, manufacturing, automotive