Case Study - GenAI Negotiations

Case Study – OpenAI Advisory Services – BBVA – 3-Year AI Lock-In Avoided & 28% Cost Savings

Case Study – OpenAI Advisory Services – BBVA – 3-Year AI Lock-In Avoided & 28% Cost Savings

Case Study – OpenAI Advisory Services – BBVA – Secured Global AI Licensing Flexibility & Cost Contro

Background

BBVA, a major European bank with global operations, was embarking on a transformative AI initiative.

The bank viewed generative AI as a means to enhance customer experience through more intelligent chatbots and personalized financial advice, as well as to streamline internal operations. After a successful proof-of-concept with GPT models, BBVA planned a broad rollout across multiple business units.

To support this, they entered negotiations with a cloud provider for an Azure OpenAI enterprise deployment—a major deal that would shape BBVA’s long-term GenAI strategy.

Challenges

As talks with the vendor progressed, BBVA’s team spotted several red flags.

The proposal bundled ancillary services and imposed a rigid three-year term, effectively locking BBVA into one platform. The pricing assumed an aggressive usage ramp-up, forcing BBVA to commit to capacity (and costs) far ahead of actual need – meaning the bank might pay for AI long before it delivered value.

Moreover, the draft contract lacked flexibility, as it had no provisions for scaling down if projects changed, nor easy exit options to switch vendors as technology evolved. Important regulatory requirements were also overlooked, such as guarantees on European data residency and audit rights, which are critical for a bank.

Unwilling to gamble on an inflexible, one-sided agreement, BBVA sought expert help to realign the deal with its strategic roadmap and compliance requirements.

How Redress Compliance Helped

BBVA engaged Redress Compliance for its Enterprise GPT Strategy & Negotiation Support. Redress’s advisors first worked with BBVA’s stakeholders to refine their AI rollout strategy, favoring a phased approach over a full commitment. Armed with this clarity, Redress reshaped the negotiation.

They addressed the contract term by advocating for a shorter initial term with renewal options, rather than a strict three-year lock-in. In parallel, they challenged the inflated usage commitments using market benchmarks, demonstrating that the vendor’s forecasts were overly optimistic.

This leverage enabled Redress to negotiate roughly a 28% reduction in the annual spend commitment, aligning costs with BBVA’s actual adoption pace.

Redress also secured key safeguards: BBVA won the right to scale down usage or pause projects without penalties, and an “out” clause to exit or renegotiate if regulatory changes made the AI service non-compliant. To satisfy compliance, Redress added provisions for EU-only data residency and audit rights for BBVA’s regulators, ensuring the deal met strict banking standards.

Throughout, Redress acted as BBVA’s negotiation coach, crafting counter-proposals and advising on when to stand firm. By pushing back on unwarranted bundling and one-sided terms, they kept the discussion focused on BBVA’s business objectives.

Outcome and Impact

With Redress Compliance’s support, BBVA secured a far more flexible and favorable AI agreement. The final deal eliminated the 3-year lock-in in favor of a 12-month term with an easy extension, allowing BBVA to adjust its course as needed.

By trimming the overestimated usage commitments, the bank shaved about 28% off the contract’s value – saving millions and ensuring they pay only for actual use.

Crucially, new data residency and audit clauses ensured the deal met BBVA’s regulatory requirements, thereby averting potential compliance issues.

Equally important, free of any long-term lock-in or bundling, BBVA retained leverage to explore other vendors or renegotiate as technology advances.

Armed with both the technology and a regulator-approved contract, BBVA launched its enterprise GPT projects confident that it had achieved innovation on its terms.

Client Testimonial

“Working with Redress Compliance shifted the power dynamics of our AI negotiation,” said a Procurement Director at BBVA. “We went from feeling pressed into a long, costly commitment to securing a deal that truly fits our strategy.

Redress helped us avoid lock-in, eliminate unnecessary costs, and incorporate the flexibility and compliance assurances we needed. Thanks to their expertise, our AI program is moving forward on our terms and timeline.”

Call-to-Action

If you’re facing a high-stakes AI contract that doesn’t sit right, bring in Redress Compliance. Our enterprise GPT negotiation experts help you push back on one-sided terms, avoid costly lock-ins, and tie AI investments to real business outcomes.

Contact Redress Compliance to ensure your GenAI deals support your vision – without the drawbacks.

Read about our GenAI Negotiation Services.

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  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizations—including numerous Fortune 500 companies—optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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