A case study on AI warranty

AI drug discovery platform promises that 80% of the identified drug targets will successfully clear the pre-clinical development phase

Disclaimer: This is an illustrative, simplified version of an AI Performance warranty contract for a fictitious company named Acme AI.

About the Company

Acme AI is a biopharmaceutical company that specializes in AI-enabled drug discovery. Its AI solutions analyze extensive biomedical information to discover new treatments for complex diseases.

AI Use Case

Acme’s drug discovery platform identifies a set of drug targets that will successfully clear the subsequent step in drug development. Consequently, Acme reduces the time to market and the costs involved in drug discovery by finding novel therapeutic treatments against specific diseases or conditions.

AI Warranty Contract

Scope of warranty

Acme promises that 80% of the drug targets suggested by its AI drug discovery platform will successfully clear the pre-clinical development phase.

Payout Structure

If Acme fails to meet the defined Scope of Warranty, Acme’s customer will be compensated as follows:

Payout per wrong prediction = 5 * Service fee charged by Acme to its customer


The guarantee does not apply if:

  • Underperformance is attributable to limitations or errors in the underlying biomedical data provided to the AI platform. For example, if the databases contain outdated information or lack data on relevant biological processes.
  • Underperformance is attributable to errors introduced during manual data entry processes before the data is fed into the AI system.

Claims Process

In the event of underperformance, Acme’s customer shall notify either Adri AI or the AI provider, no later than 30 days after the interview was conducted. This notification should be accompanied by sufficient supporting evidence.

A good faith judgment will be made to decide if the warranty applies to the submitted claim. If the claim is validated, the customer will be compensated as defined in the Payout structure.

Obligations of AI vendor's customer

Acme’s customer must use the AI drug discovery software in standard settings and only for the use cases stipulated in the service contract.


  • "Customer" refers to the organization that has purchased Acme’s Enterprise service plan.
  • “Underperformance” is said to have occurred if the Scope of Warranty is not fulfilled.
Share article