AI is not just software. It includes trained models, datasets, deployment pipelines, and the operational processes that keep everything running. If your organization depends on third-party AI, you are also taking on third-party risk.
PRAXIS AI Escrow helps reduce that risk by securing the AI assets your business relies on. If a vendor fails, discontinues support, or experiences a disruption that triggers your escrow release conditions, escrow can provide a path forward for continuity and control.
If you want to talk through an AI escrow strategy, contact our team at 800-213-9802 or visit our contact page.
Why AI Needs Escrow Protection
Enterprise teams are embedding AI into everyday operations. That can include decision support, workflow automation, customer engagement, fraud detection, and forecasting. The upside is real, but so is the exposure.
AI vendor risk is different from traditional software risk. Many AI solutions are delivered as managed services. You may not have access to the underlying components needed to rebuild or transition if the vendor becomes unavailable.
AI escrow supports:
Business continuity when access to a critical AI system is disrupted
Governance and oversight by preserving key technical and operational artifacts
Vendor accountability by adding enforceable continuity requirements to contracts
Risk reduction for legal, procurement, and compliance teams
If you are new to escrow, start with this overview:
What Is AI Escrow?
AI Escrow is a type of technology escrow designed specifically for artificial intelligence systems. Traditional escrow often focuses on source code. AI escrow expands the deposit scope to include the components that make AI usable, repeatable, and supportable.
Depending on the system, an AI escrow deposit may include:
AI model files and architecture
Trained weights and parameters
Training and validation datasets (or approved equivalents)
Data pipelines and workflow scripts
Deployment and infrastructure assets
Configuration files and environment documentation
Runbooks, technical documentation, and governance artifacts
Escrow helps ensure these materials are stored securely with a neutral third party and can be released under defined conditions.
How PRAXIS AI Escrow Works
1) Escrow Agreements Built Around the Actual AI System
AI systems vary widely. Some are packaged and deployed internally. Others run entirely in a vendor-managed environment. PRAXIS works with your team to define what must be deposited, how it is updated, and what triggers release.
Your escrow agreement typically covers:
Deposit requirements
Update frequency
Verification options
Release conditions
Use rights after release
2) Automated Escrow Updates That Keep Deposits Current
Manual deposits often fall behind modern development cycles. AI systems can change weekly, sometimes daily. PRAXIS Automated Escrow helps keep deposits aligned with real-world changes by supporting regular deposit updates.
Automated Escrow is especially valuable for AI and machine learning systems where:
models are retrained frequently
pipelines evolve over time
new dependencies are introduced
governance requirements increase
Learn more about Automated Escrow here
3) Infinite Retention for Long-Term Continuity
Current deposits solve one part of the problem. Long-term continuity requires historical preservation. Many AI systems rely on prior versions for traceability, reproducibility, audit response, and forensic analysis.
Infinite Retention is PRAXIS’ never-delete retention approach. It ensures escrow materials remain preserved for the life of the agreement unless the parties instruct otherwise.
Infinite Retention supports:
retaining prior model versions for audit trails
validating model lineage and changes over time
recovering older dependencies and build paths
supporting investigations and regulatory review
4) Secure Storage and SOC 2 Controls
PRAXIS operates within a security framework designed to protect escrow materials and confidential technology assets. Deposits are handled with strict access controls and secure storage practices.
If your organization requires formal documentation during vendor reviews, PRAXIS can support those requests through standard security and operational processes.
5) Release Conditions Defined by the Parties
Escrow only works if release conditions are clear and enforceable. PRAXIS escrow agreements allow parties to define release triggers that match the business relationship.
Common release conditions may include:
vendor insolvency or bankruptcy
failure to support the system as required
extended outage or service unavailability
contractual breach tied to continuity obligations
Who Should Consider AI Escrow?
AI escrow is a strong fit for:
Enterprise buyers relying on third-party AI tools in core operations
CTOs and CIOs responsible for technology continuity and vendor risk
Legal and compliance teams managing governance and audit readiness
AI vendors and software providers who need to reduce friction in enterprise sales
Benefits of AI Escrow with PRAXIS
Business Continuity
Maintain a path to recovery if a vendor disruption triggers release conditions.
Risk Management
Reduce dependency on a single vendor-controlled AI environment.
Governance Support
Preserve technical artifacts that support oversight, traceability, and internal controls.
Enterprise Trust
Strengthen vendor credibility and reduce procurement resistance.
Operational Confidence
Know that critical materials are stored securely and retained long term.
If AI is business-critical, escrow should be part of your vendor risk strategy. PRAXIS can help you define a deposit scope that matches the AI system and aligns with your continuity requirements.
FAQ
AI escrow is a technology escrow arrangement where key AI assets, such as models, datasets, and deployment materials, are deposited with a neutral escrow agent and released only if defined conditions occur.
Most AI escrow deposits include model artifacts, weights, configuration files, deployment scripts, documentation, and other materials needed to reproduce or transition the AI system. The exact scope depends on how the AI solution is delivered.
If an AI vendor becomes unavailable or fails to meet contractual obligations, escrow can provide access to the materials needed to restore, rebuild, or transition the AI system, depending on the agreement terms.
PRAXIS Automated Escrow™ supports scheduled updates that help keep escrow materials aligned with ongoing development. This reduces the risk of outdated deposits.
Learn more here:
https://www.praxisescrow.com/automated-escrow/
Infinite Retention is PRAXIS’ retention approach that preserves escrow materials long term instead of overwriting or purging older versions. For AI systems, historical versions may be important for audits, investigations, and reproducibility.
No. AI escrow can also benefit mid-market organizations and growing software companies, especially when AI tools support revenue-generating workflows or regulated processes.
PRAXIS maintains SOC 2 controls and security practices designed to protect escrow materials through secure storage, controlled access, and operational safeguards.
Release conditions are defined in the escrow agreement. If the specified conditions occur, PRAXIS can release the escrow materials to the beneficiary under the agreement terms.