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How to Measure AI Usage Among Contractors and Agencies You Don't Control | Larridin

Written by Larridin | Sep 3, 2026

Contractors and agencies can’t always be monitored the same way as employees, especially when they work on devices and accounts you don’t control. Visibility depends on what you require contractually, what happens inside your systems, and what you can verify in the finished work.

Key Takeaways

  • Contractors working inside systems you control may still generate useful activity data, even if they aren’t employees.
  • Contracts can set AI-use expectations, but they can’t give you visibility into work happening entirely outside your environment.
  • If an agency works entirely in its own systems, focus on contract requirements and verifying the finished work.

Why Contractor AI Usage Is Harder to Measure

With employees, organizations often control at least some combination of the device, identity, network, and company-managed software accounts used for work. Contractors and agencies may work on their own devices and use their own accounts across multiple clients.

That changes what you can see. A contractor working in your GitHub repository or CRM may still generate useful activity data inside your systems, even if they aren’t employees. An agency that completes the work entirely in its own environment gives you little or no direct visibility into how AI was used.

The practical question is what parts of the work environment you control.

What to Put in the Contract

If AI use matters to your AI governance or risk requirements, address it before work begins.

CIO.com recommends AI contract terms that cover where and how AI is used, oversight responsibilities, and liability. Common AI data-processing terms can also address whether submitted data may be used for model training, which subprocessors are involved, and what happens to data when the relationship ends.

For a contractor or agency agreement, work with counsel to decide which requirements fit the engagement. Depending on the work, that may include:

  • Disclosure of whether and where AI will be used
  • Rules for entering company or customer data into AI systems
  • Required human review or approval of AI-assisted work
  • Disclosure of third-party AI tools or subprocessors
  • Data retention, deletion, and training restrictions
  • Responsibility when AI-assisted work creates an error or compliance issue

A contract doesn't give you real-time visibility, but it sets expectations before the work starts.

Use the Visibility You Already Have

When contractors work inside systems you administer, use the data those systems already provide.

For example, a contracted engineer added to a company-owned GitHub repository still generates commit and pull request activity in that repository. The same principle can apply to company-managed SaaS accounts or licensed seats in your own tenant.

Exactly what you can see depends on the platform, account type, permissions, and available logs. Confirm coverage system by system rather than assuming contractor activity will look exactly like employee activity.

This approach has a hard boundary: it only covers work done in systems you control.

Verify the Deliverable When You Can't See the Process

If an agency works entirely in its own environment, focus on the quality of the work you receive.

For code, use the same review, testing, durability, and rewrite or revert checks you would apply to other external engineering work. For written or analytical deliverables, check factual accuracy, originality, sourcing, and whether the work meets the agreed requirements.

These checks can tell you whether the deliverable is acceptable.

Match the Approach to the Relationship

The right approach depends on how the work gets done:

  • Contractor working mainly in your systems: Use system-level activity data plus appropriate contract terms.
  • Agency working mainly in its own systems: Rely more heavily on contract requirements and deliverable review.
  • Mixed environment: Combine both approaches and be explicit about where your visibility ends.

More employee monitoring won't solve a visibility gap outside the systems you control. Use the controls that fit the relationship.

Frequently Asked Questions

Can employee monitoring software track AI usage by contractors?

Sometimes. If the contractor works through accounts, devices, or systems you administer, those systems may provide useful activity data. If the work happens entirely on outside devices and accounts, your monitoring coverage will be much more limited.

Should contractor agreements require disclosure of AI use?

That depends on the work and your organization's legal, security, and governance requirements. If AI use affects data handling, confidentiality, quality, or compliance, the agreement is one place to define disclosure and oversight expectations. Have counsel review the specific terms.

Measure the AI Activity Inside Your Environment

Larridin helps organizations connect AI adoption, usage, spend, and outcomes across the enterprise. For contractor and agency work, visibility is strongest when that work happens inside systems and accounts your organization controls.

Talk to an expert.