The Captive Client Problem

LinkedIn Post 01: The Captive Client Problem

Your building's AI vendor just announced a 20% fee increase.

You're angry, but trapped. The vendor's model learned your building over 3 years. Switching means 6-12 months of performance regression while a new vendor's generic model relearns your patterns.

Switching cost > fee increase. You pay.

This is vendor lock-in at scale.

Traditional FM contracts created competitive pressure. If your HVAC contractor overcharged, you replaced them. AI changes this. Once a vendor's model learns your building, you're a captive client.

The solution: governance.

Establish explicit contract language requiring:

• Pre-update testing and approval

• Model export at contract end

• Clear liability for algorithmic failures

• Audit rights for model transparency

When vendors know clients can switch without performance penalty, competition returns.

Your building's brain shouldn't be owned by your vendor.

#FacilitiesManagement #BuildingAI #VendorManagement #Governance