Contracting Pointers for AI Providers and Companies Incorporating AI in Their Products and Services
Navigating Data Ownership and Licensing, IP Representations and Warranties, Regulatory Compliance, and Risk Allocation
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will discuss contract considerations for AI providers and businesses that incorporate generative AI into their products and services. The panel will address the unique aspects and complexities of AI and provide drafting tips for AI user agreements that apportion risk, protect the AI provider's interests, and comply with legal and ethical guidelines while also providing users with transparency regarding data handling.
Outline
- Overview: how businesses across every industry are incorporating AI into their products and services
- Key terms and considerations for AI providers' user agreements with customers
- Disclosure/due diligence of AI use
- Performance standards
- Third-party AI service acknowledgment
- Training data and prompts
- Ownership and licensing of IP rights
- Acceptance of AI risks
- Limitation of liability
- Data privacy considerations
- Legal compliance and protecting rights in a changing legal and regulatory environment
- Confidentiality provisions
- Implementing additional terms for new or existing customers
- Practical tips and key takeaways
Benefits
The panel will address these and other key issues:
- How are businesses incorporating AI in their products or services and who is considered an AI provider?
- What are some of the unique risks and liabilities associated with AI that should be addressed in AI providers' user agreements with their customers?
- How do current data privacy laws regulate the use of AI?
- How can AI providers mitigate their exposure to breach of contract claims from their customers when legal and regulatory developments continue to evolve and change?
Faculty
Maureen E. Fulton
Partner
Koley Jessen
As the chair of the Data Privacy and Security practice area, Ms. Fulton dedicates her practice to advising businesses... | Read More
As the chair of the Data Privacy and Security practice area, Ms. Fulton dedicates her practice to advising businesses in developing comprehensive privacy and data security programs. She uses her experience as a Certified Information Privacy Professional (CIPP/US) to guide companies in navigating through state, federal, and international privacy laws and regulations. She leverages her expertise in data privacy to assist clients with a wide range of matters, including compliance counseling, risk management, incident response, and litigation. Ms. Fulton has extensive experience in performing data privacy and security due diligence for buyers and sellers in merger and acquisition transactions. She also assists clients in preparing for and remedying data breach incidents, including managing state-specific breach notifications and identifying the associated litigation risks. She also acts as interim privacy counsel when clients need additional support on privacy-related matters.
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Jack Horgan
Shareholder
Koley Jessen
With a focus on representing middle-market technology companies in connection with their commercial endeavors, Mr.... | Read More
With a focus on representing middle-market technology companies in connection with their commercial endeavors, Mr. Horgan counsels clients on both the provider-side and the procurement-side of software, technology, and IP commercial transactions. He routinely handles transactions involving: software licensing, software distribution, software development, SaaS, PaaS, IaaS, cloud computing, outsourcing, ERP solutions, IoT, co-location arrangements, database licensing, artificial intelligence, NFTs, blockchain, mobile applications, patent and technology licensing, joint development arrangements, and IT professional services.
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