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LEGAL DOCUMENT

FARO Software Solutions Generative AI Policy

Version June 2025 1.0 | Last Updated: June 2025

Contents

Overview

FARO Software Solutions, LLC (FARO) is committed to harnessing the transformative potential of generative AI while fostering trust, responsibility, and accountability. By prioritizing thoughtful integration into our solutions for government customers, FARO demonstrates its commitment to operational excellence, public trust, and respect for sensitive use cases. Our policy reflects adherence to government compliance requirements, alignment with industry best practices, and a focus on smart governance, with an emphasis on applications in critical areas such as business regulation, criminal justice, housing, education, employment, credit, healthcare, and financial benefits.

Guiding Principles for Generative AI Integration

To build and sustain the confidence of our government customers, FARO applies the following foundational principles to our generative AI solutions:

1. Assistive Technology to Support Human Expertise

FARO's generative AI tools are designed to augment the capabilities of government personnel by organizing and presenting data in accessible formats. The tools serve as a resource to enhance decision-making, with final authority remaining in the hands of human professionals.

2. Flexibility and Choice

Recognizing the diversity of government operations, FARO provides options for personnel to either utilize generative AI tools or rely on non-AI solutions. This approach ensures that users retain full control over their workflows and decision-making processes.

3. Privacy-First Approach

FARO prioritizes safeguarding customer data and maintaining secure data environments. Generative AI systems process data within private, controlled infrastructures—typically within the customer's designated cloud environment—without exposing information to external or unauthorized access.

4. Transparency and Traceability

FARO's generative AI outputs are designed to include traceable insights, enabling government personnel to verify the origin and rationale behind AI-generated recommendations. This reinforces trust and provides accountability for all AI-assisted actions.

5. Alignment with Ethical Standards

FARO incorporates ethical considerations into the design and deployment of its generative AI solutions, avoiding unintended bias and promoting fair treatment across all applications. These considerations align with both government mandates and industry expectations.

Real-World Applications and Examples

FARO's policy principles come to life through practical examples, illustrating how generative AI enhances government operations while respecting autonomy, privacy, and governance.

1. Augmenting Decision-Making

Generative AI systems developed by FARO convert complex, unstructured datasets into comprehensible visualizations, summaries, or insights. For instance, in housing programs, AI tools may synthesize data on housing availability, tenant demographics, and funding allocation trends to provide a clearer picture for policymakers. However, ultimate decisions rest with human stakeholders.

2. Preserving Human Control

Government personnel have the option to independently analyze raw or preprocessed data without relying on AI outputs. In criminal justice applications, for example, AI might analyze patterns in case records, but investigators and legal professionals retain full authority over their conclusions and actions.

3. Secure Data Processing

FARO uses secure systems that operate within the customer's existing cloud infrastructure, ensuring that sensitive data—such as health records, employment information, or financial details—is processed without exposure to external networks. These practices adhere to strict governmental security guidelines and prevent unauthorized access.

4. Promoting Efficiency in Critical Areas

In educational settings, generative AI tools might be used to create tailored curricula based on diverse learning needs, presenting recommendations to educators. Similarly, in healthcare, generative AI could assist in synthesizing patient records to identify trends, empowering medical professionals to focus on patient outcomes rather than administrative tasks.

Commitment to Privacy and Security

FARO's generative AI solutions operate within frameworks that emphasize privacy, security, and compliance. Key features include:

  • Controlled Data Environments: AI systems operate within customer-managed environments, including cloud infrastructures owned or controlled by government entities.
  • Restricted Data Sharing: No data processed by FARO's generative AI tools is shared with external third parties or exposed to public networks.
  • Robust Cybersecurity Measures: FARO employs state-of-the-art encryption and threat monitoring technologies to protect sensitive data and mitigate risks.

Monitoring and Adapting to Industry Changes

As generative AI evolves, FARO remains dedicated to adapting its policies and practices to address emerging technologies and shifting customer needs. FARO regularly evaluates advancements in AI, regulatory developments, and ethical standards, maintaining alignment with government compliance and the expectations of our stakeholders.

Driving Trust Through Responsible AI

By adhering to these principles, FARO seeks to create meaningful, ethical, and practical applications of generative AI that advance government outcomes. Our focus is on empowering personnel, improving operational efficiency, and fostering public trust while upholding privacy and security across all deployments.

Disclaimer

Generative AI technologies are dynamic and rapidly advancing. FARO is committed to proactive engagement with evolving best practices, regulatory requirements, and the diverse needs of our customers. Our approach is aimed at reinforcing government operations, extending the capabilities of human personnel, and creating secure, productive interactions between government entities and the public.

This updated policy represents FARO's vision for a responsible and transformative integration of generative AI into government systems, setting the foundation for continued innovation and trust.

The provisions outlined in this AI Policy Statement represent the default terms governing the use of our offerings. Specific terms and conditions may be modified upon mutual written agreement between FARO and the customer. Any such modifications will apply solely to the specific content addressed in the mutual agreement, while all other provisions of this agreement will remain in full force and effect. FARO reserves the right to periodically update these agreements to ensure compliance with applicable laws and evolving business practices.

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