A case study on AI warranty

Autonomous patrolling robot guarantees that it will detect at least one intruder in 100% of theft incidents

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 ("Company") builds fully autonomous robots that perform tedious outdoor tasks in farmlands and construction sites. These robots improve efficiency of farmland activities like harvesting, load carrying and address labor shortages. Using AI, high-precision GPS, and sensory technologies, these robots navigate complex environments, optimize operational paths, and intelligently manage loads.

AI Use Case

Farm equipment, such as tractors, combines, and specialized machinery, represents a significant investment for agricultural businesses. As a result, farm equipment theft can result in substantial financial losses besides disrupting agricultural operations.

Acme’s autonomous patrolling robot conducts 24/7 patrols in designated zones of the agricultural site to address farm equipment theft. Using computer vision, these robots detect  intruders and promptly notify the farm operators.

AI Warranty Contract

Scope of warranty

Acme promises that its autonomous patrolling robot will:

  • detect at least one intruder in 100% of theft incidents
  • false alerts will not constitute more than 1% of total alerts every quarter

Payout Structure

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

Payout per missed intruder detection = 5 * Service fee charged by Acme to its customer
Payout per false alert = 3 * 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, incidents where safety protocols in the site were deliberately disabled by a human.
  • Autonomous robot is used outside its scope. For example, in a non-agricultural site.

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 autonomous patrolling robot 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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