Interested in training for your team? Click here to learn more

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 program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, February 13, 2024

Recorded event now available

or call 1-800-926-7926

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.


Businesses across every industry are considering ways to incorporate AI into their products and services. AI providers can be the actual developers of the foundational model for an AI solution or application developers may build on that foundational model or otherwise make it available as part of larger offerings. All businesses that incorporate AI into their products and services need to consider various contractual provisions, whether their contracts take the form of "standard terms and conditions" agreed to via click-through mechanisms or negotiated contracts.

AI service providers must apply well-known legal concepts to lesser-known AI elements in their user agreements. Parties experienced with SaaS agreements will find some familiar landscape, and indeed AI solutions are often provided by SaaS. However, AI providers should be prepared for unique issues and more complexity--and potential risks and liabilities--associated with an array of types and sources of data that train, fuel, guide, emanate from, and modify generative AI-based models, solutions, and systems.

Some of the key issues and provisions that should be addressed by AI providers in their user agreements include third-party terms from frontier model providers; training data and prompts; liability for outputs; intellectual property-related representations, warranties and indemnities; ownership of AI output and improvements to AI models; data privacy considerations; and compliance with current and future laws and regulations.

Listen as our authoritative panel discusses the unique issues and risks presented by AI and the key concepts AI providers should address in their user agreements to protect their legal and financial interests as well as mitigate their risk of liability.



  1. Overview: how businesses across every industry are incorporating AI into their products and services
  2. Key terms and considerations for AI providers' user agreements with customers
    1. Disclosure/due diligence of AI use
    2. Performance standards
    3. Third-party AI service acknowledgment
    4. Training data and prompts
    5. Ownership and licensing of IP rights
    6. Acceptance of AI risks
    7. Limitation of liability
    8. Data privacy considerations
    9. Legal compliance and protecting rights in a changing legal and regulatory environment
    10. Confidentiality provisions
  3. Implementing additional terms for new or existing customers
  4. Practical tips and key takeaways


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?


Fulton, Maureen
Maureen E. Fulton

Koley Jessen

As the chair of the Data Privacy and Security practice area, Ms. Fulton dedicates her practice to advising businesses...  |  Read More

Horgan, Jack
Jack Horgan

Koley Jessen

With a focus on representing middle-market technology companies in connection with their commercial endeavors, Mr....  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video