AI Usage Disclosure

Effective Date: August 9, 2026

1. Scope of This Disclosure

This AI Usage Disclosure applies to all commercial services provided by Avondale.AI, including infrastructure analysis, performance optimization, security assessments, compliance preparation, AI platform deployment, and ongoing monitoring. It is incorporated by reference into the Avondale.AI Terms of Service. This disclosure does not apply to consumer products, which are governed by separate terms and disclosures published on the respective product page.

2. How AI Is Used

Avondale.AI uses artificial intelligence, including large language models and machine learning tools, as part of its service delivery. AI is used to:

• Analyze infrastructure configurations, network architecture, and service deployments;
• Map compliance controls across multiple regulatory frameworks simultaneously;
• Identify potential security vulnerabilities, misconfigurations, and gaps;
• Generate draft documentation, including policies, procedures, and remediation roadmaps;
• Accelerate data analysis that would be impractical to complete manually within the Engagement timeframe;
• Produce discovery knowledge bases compiling environment details into structured formats.

AI is used as a tool to accelerate and deepen analysis. It is not used as an autonomous decision-maker. No Deliverable is produced solely by AI without human review.

3. What AI Does

As part of Avondale.AI's expert-led, AI-amplified service model, AI performs the following functions:

1. Pattern Recognition: Identifies patterns, anomalies, and control gaps across large volumes of configuration data, policy documents, and system outputs.
2. Cross-Referencing: Maps controls across multiple compliance frameworks (e.g., NIST 800-171, CMMC, ISO 27001, SOC 2) to identify overlapping requirements and gaps.
3. Draft Generation: Produces draft text for policies, procedures, reports, and remediation recommendations based on analysis of Client Data.
4. Knowledge Compilation: Organizes discovered information into structured knowledge bases in requested formats (PDF, Word, HTML, Markdown).
5. Accelerated Analysis: Processes and analyzes data at a speed and scale that exceeds manual capability, enabling deeper analysis within Engagement timeframes.

4. What AI Does Not Do

Specifically, Avondale.AI's AI does NOT:

• Make compliance determinations: AI identifies potential gaps and control mappings. A named expert validates every finding. A certified assessor performs any required certification.
• Issue certifications: Avondale.AI is not a C3PAO and does not employ a Qualified Assessor. AI cannot and does not issue any certification of any kind.
• Replace human expertise: AI amplifies human capability but does not replace human judgment. The expert-led model requires a named person to stand behind every finding.
• Operate autonomously: AI does not take actions, make changes, or interact with Client systems without explicit human direction. All AI operations are initiated and reviewed by Avondale.AI personnel.
• Make automated decisions about individuals: AI is not used to make decisions that produce legal effects or significantly affect individuals. See Section 9.
• Train on Client Data: Avondale.AI does not use Client Data to train, fine-tune, or improve AI models. Client Data is used solely for performing the Services during the Engagement.

5. Human Validation Requirement

Every AI-assisted output must pass through a human validation process before it becomes a Deliverable. This process consists of:

1. Expert Review: A named Avondale.AI expert reviews every AI-generated finding for accuracy, completeness, and relevance.
2. Contextual Validation: The expert validates findings against the Client's actual environment, requirements, and business context.
3. Correction: AI errors are corrected before inclusion in Deliverables. Erroneous AI output is excluded.
4. Sign-Off: The named expert approves the final Deliverable. When a Client or auditor asks who reviewed a finding, there is a name. Not a dashboard.

6. AI and Your Data

Client Data provided to Avondale.AI for analysis may be processed by AI systems as part of Service delivery. The following applies:

• Where data is processed: Client Data is processed on Avondale.AI's sovereign, on-premise infrastructure. No Client Data is transmitted to third-party cloud AI services unless explicitly agreed in writing.
• How data is used: Client Data is used solely for performing the Services during the Engagement. It is not used to train, fine-tune, or improve AI models.
• What happens after the Engagement: Client Data is purged no later than thirty (30) days after the Engagement concludes, unless a different timeline is specified in the Engagement.
• Data ownership: The Client retains all ownership of its data. Avondale.AI acquires no ownership rights. See Section 7 of the Terms of Service.
• No data off platform: By default, no Client Data leaves Avondale.AI's controlled infrastructure. Any exception requires written agreement.

7. Sovereign AI Infrastructure

Avondale.AI operates its AI systems on sovereign, on-premise infrastructure. This means:

• AI models run on hardware controlled by Avondale.AI, not on third-party cloud platforms;
• No third-party processor has access to Client Data during AI processing;
• AI processing does not depend on external API availability or third-party service terms;
• All AI processing occurs within the United States;
• Infrastructure-level environmental impact is minimized through on-premise compute, reducing data center water and electricity consumption compared to cloud-based AI alternatives.

8. Your Rights Regarding AI

As a commercial client of Avondale.AI, you have the following rights regarding AI usage:

1. Right to Know: You have the right to know that AI is being used in your Engagement. This disclosure satisfies that right.
2. Right to an Explanation: You may request a human-readable explanation of how AI was used in producing any Deliverable. Avondale.AI will provide a summary of the AI-assisted process and the expert validation applied.
3. Right to Human Review: Every Deliverable has been reviewed by a named human expert. You may request to speak with the expert responsible for validating your Deliverables.
4. Right to Correct: If you identify an error in an AI-assisted Deliverable, Avondale.AI will investigate, correct the error, and re-validate the affected findings at no additional cost during the Engagement term.
5. Right to Opt Out of Specific AI Uses: If you have a specific objection to a particular AI application in your Engagement (e.g., you do not want AI to draft policies, only to analyze configurations), Avondale.AI will accommodate reasonable requests. This may affect the scope and timeline of the Engagement.
6. Right to Data Return: Upon request, Avondale.AI will return all Client Data provided for AI processing and purge it from our systems per the data handling terms in your Engagement.

9. No Automated Decision-Making

Avondale.AI does not use AI to make automated decisions that produce legal effects or significantly affect individuals. Specifically:

• AI does not make hiring, firing, credit, insurance, or benefits decisions;
• AI does not make compliance certification or regulatory determination decisions;
• AI does not make access control or permission decisions on Client systems;
• AI does not make purchasing or contractual decisions on behalf of the Client;
• All decisions with legal, regulatory, or business consequences are made by a named human expert, not by AI.

This section applies to Avondale.AI's commercial services. Consumer products, when available, will have separate disclosures addressing any automated features.

10. Accuracy and Limitations

AI systems have inherent limitations. Avondale.AI acknowledges these limitations and mitigates them through the human validation process described in Section 5. Known limitations include:

• Hallucination: AI may generate plausible-sounding but incorrect content. The expert validation process is designed to catch and exclude these outputs.
• Context Gaps: AI may not fully understand the Client's specific business context, industry nuances, or operational constraints. The expert provides this context during validation.
• Knowledge Cutoff: AI models may not reflect the most recent regulatory changes, threat intelligence, or industry developments. The expert supplements AI analysis with current knowledge.
• Bias: AI may reflect biases in its training data. The expert validates findings against the Client's actual environment, not against generalized patterns.

Despite these limitations, Avondale.AI's expert-led, AI-amplified model is designed to produce Deliverables that are more thorough and more accurate than either AI alone or manual analysis alone. The combination of AI depth and human judgment is the core of our service model.

11. Changes to This Disclosure

Avondale.AI may update this AI Usage Disclosure from time to time as AI technology, applicable regulations, or our service model evolve. The effective date at the top of this page indicates when the current version was posted. Changes apply to new Engagements entered into after the effective date. Engagements already in progress are governed by the disclosure in effect at the time the Engagement was initiated, unless the Engagement expressly provides otherwise.

12. Questions

If you have questions about how AI is used in your Engagement, or if you wish to exercise any of the rights described in Section 8, contact Avondale.AI through our contact page. We will respond within a reasonable timeframe based on the nature of your request.

Relationship to Terms of Service: This AI Usage Disclosure is incorporated by reference into the Avondale.AI Terms of Service. In the event of a conflict between this disclosure and the Terms of Service, the Terms of Service control. This disclosure does not create any warranty not expressly stated in the Terms of Service or the applicable Engagement.