How to distinguish letters of intent from committed demand for AI coding tools

A letter of intent can communicate interest, but its meaning depends on what it actually says and what actions followed. Distinguish expressions of interest from authorized, funded, and enforceable commitments. Do not infer legal effect from the document's title.

Start with the decision

Read the relevant document with qualified counsel where needed. Separately record budget status, approvals, implementation work, and the next decision. Ask what evidence would exist if the buyer were preparing for a real purchase.

The illustrative scenario

This is an educational workbook. The company or fund and all numerical inputs below are fictional. They are not ADIN results, customer claims, market benchmarks, or a forecast.

The fictional tool proposes small code changes in an internal development environment. Engineers review the patch and run the project's checks before merging. The product's user and the person approving a purchase may be different.

A patch that compiles can still violate the intended behavior. Repository permissions, test coverage, and rollback procedures matter alongside developer enthusiasm.

Turn the scenario into an evidence decision

Consider a review of AI coding tools in which a confident explanation arrives before the supporting records. Start with the first question in the table. Write down what an answer would change: the next interview, the experiment's scope, a request for specialist review, or a decision to wait. A question without a consequence can produce a longer document while adding little understanding.

Next, inspect the record named in the table and record its date, owner, permission boundary, and limitations. Track accepted and rejected patches, tests run, review comments, and downstream fixes. Use representative repositories that the team is authorized to process. If the record contradicts the explanation, preserve both accounts and ask which definition, period, or workflow differs. Do not silently select the version that makes the opportunity look strongest.

Finish with a conditional statement: if the specified evidence supports the claim under these conditions, take the named next step; otherwise investigate the unresolved question. A useful traction narrative describes the exact commitment and its limits. If nothing has changed in the buyer's behavior, the document may still inform learning while offering little evidence about timing or future revenue. This worked exercise is about the decision process. It does not assert that a fictional company has met a real diligence standard or that a template can authorize an investment.

Use this worksheet

Answer the questions with a source, date, owner, and next action. Mark an unknown as unknown. Use public or permissioned information and involve a qualified specialist when a question requires expertise beyond the team’s competence.

1. What does the document state?
2. Who authorized it?
3. Is a budget approved?
4. What work has begun?
5. Which conditions remain unresolved?

Questions specific to this scenario

• Who owns the repository permission?
• Which tests represent the intended behavior?
• How is a bad change rolled back?

Track accepted and rejected patches, tests run, review comments, and downstream fixes. Use representative repositories that the team is authorized to process.

A concrete next test

Select a small accepted patch and a rejected patch from an authorized repository. Ask the maintainer to explain the intended behavior and the checks used. Record whether the tool shortened review or merely moved investigation into a different step.

Interpret the result

A useful traction narrative describes the exact commitment and its limits. If nothing has changed in the buyer's behavior, the document may still inform learning while offering little evidence about timing or future revenue.

Compare time to a reviewed, accepted change with the existing workflow. Count investigation and rework rather than treating generated lines as delivered value.

Sources and method

These primary resources provide background for the concepts. The fictional scenario, calculations, and worksheet are ADIN educational examples; the sources do not report or validate those invented results. Reviewed October 11, 2026.

• First Round Review: Sierra’s design partner strategy
• NIST: AI Risk Management Framework