Watching a movie, you normally get a "home viewing" license. That does not give you the right to show it at your business (even if you don't charge money and only 10 people come).
There's also a Public Performance Rights (PPR) license, and I always had to get PPR's because Google lawyers would shut us down otherwise. PPR costs considerably more than a home viewing license.
When I negotiated PPR's, they always asked three questions:
1. How many in the audience?
2. Are you charging money?
3. Are you advertising this outside Google?
If I were a movie theater taking $15 a head from anyone who showed up, my PPR would cost a lot more.
It seems that what IA wants is to use home viewing rights as though they had PPR's.
"No, they don't!" you retort? You might be right, but asking AG to design a license for them would be a lot more friendly than saying, "Hey, this is fair to you, take it!"
Edit: one thing I forgot to add: lawyers always prefer to start with their own draft. We can hypothesize a conversation between IA and AG (which never actually happened):
[IA] Hey, can we use your books? Write us a new agreement.
[AG] OK, that'll take a few months for a first draft. Then we'll negotiate.
[IA] OMG, we don't have all that time.
[AG] Okey-dokey, we'll see you in court.
[1] https://albertcory50.substack.com/p/culture-at-google-part-o...