AI clauses

This subtopic contains Precedent clauses that a customer may seek to incorporate in contracts for artificial intelligence (AI) systems when presented with a supplier’s standard terms.

The market for procuring AI systems has not yet reached a mature status and customers may find that suppliers are seeking to make AI systems available subject to standard terms that do not offer customers much, if any, protection for the risks and nuances associated with implementing and using these systems. Customers may therefore face a challenge when seeking to exploit the competitive advantages that AI systems offer, while managing the risks.

However, suppliers have a key role to play in assisting customers to implement AI responsibly and to manage the legal, financial and reputational risks that may arise if AI is implemented in ways that cause harm, do not comply with existing and emerging laws and regulations, or subject the customer to third party litigation.

Customers should test suppliers’ willingness to negotiate and establish whether they may be prepared to assume some risk and incorporate greater protection in the contract for customers. They should review the clauses in this subtopic and