A case study on AI warranty

AI Proctoring company guarantees that it will detect at least 98% of suspicious activities in an interview

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 offers a comprehensive suite of AI-powered products to help enterprises and staffing firms find qualified candidates faster. Their platform encompasses AI screening, proctoring, and skill assessments, allowing businesses to delve beyond resumes to evaluate candidate skills, fit, interest, and integrity accurately.

AI Use Case

Acme’s AI Proctoring software detects and prevents cheating during remote interviews. By tracking candidate behavior via keystrokes, audio, and webcam, Acme detects  fraudulent behavior and ensures integrity and quality in the hiring process.

AI Warranty Contract

Scope of warranty

Acme promises that its AI proctoring software will detect at least 98% of suspicious activities in an interview.

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 factors outside Acme’s reasonable control. For example, the candidate’s poor internet connections or hardware malfunctions that impede AI's ability to monitor interviews effectively.
  • Customer’s hiring team ignores Acme’s proctoring results and moves ahead with their hiring process
  • Underperformance occurs during the trial period of the Enterprise service plan

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 proctoring 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.
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