What is an AI Data Processing Agreement Review?
An AI data processing agreement is a contract signed by an AI service provider and data controller or business. It includes information to lay the foundation for how data will be handled between parties, such as privacy, security measures, and liability standards.
To review this agreement, it’s essential to take a deeper dive into its terms and clauses to ensure it’s fair to both parties and transparent to prevent disputes.
Read the rest of this article to explore what an AI data processing agreement contains, how to review it, and when to consult with a lawyer for a thorough review.
What’s in an AI Data Processing Agreement?
An AI Data Processing agreement usually contains a range of key terms, such as the following:
- Data processing. The agreement should define what the data is, its purpose, and how it will be restricted.
- Rights. This specifies what roles and rights both parties have when using the data.
- Data usage. This explains important usage, such as if the processor can use the other person’s data for AI model training.
- Audits. The controller should have the right to conduct regular audits to ensure the data meets certain protection standards.
- Security measures. To protect the data, the agreement must explain what methods will be used, such as encryption.
- Liability. If there is a breach, this agreement states how it will be dealt with.
- Data deletion. When the contract comes to an end, there needs to be processes included for what should happen to the data, such as returning or deleting it.
How Do You Review an AI Data Processing Agreement?
When reviewing an AI data processing agreement, you should focus on some key aspects. Here are some review tips.
Check for Generic Terms
The term “data” can be too broad and unclear. You want to ensure that the agreement features transparent information about what type of data is included so there’s no confusion.
Ensure Limits are Defined
While you might see clear information about what data is used and how it can be handled, the agreement should also include limitations. For example, can the processor use your data to train models or share it with third parties?
Question the Security Measures
Data protection is one of the most crucial aspects of any AI data processing agreement. You should check what protection is going to apply to the data, such as encryption. There should also be protections in place for breaches, such as remedies to correct the situation.
Assess Your Liability
There should be information about who’s responsible if something goes wrong, such as a data leak or the AI output is unsatisfactory. You want to check for low liability so that you’re not responsible for too much that can have legal or financial costs.
Review Party Information
All included parties need to be clearly defined, such as the processor, client, and any subprocessors. The agreement should ensure there are clear points of contact should these be required.
Have Role Clarity
A data controller’s responsibilities should include protecting data rights, such as by giving the user or client a privacy policy. The data processor, on the other hand, has to monitor data security.
If the agreement doesn’t include information about what your specific duties are under the contract, you should consult with the other party to have it added to the document.
Keep the Agreement Compliant
The AI data processing agreement must be aligned with all privacy and data laws. This requires due diligence because the laws and regulations change regularly.
Should You Hire a Lawyer to Review an AI Data Processing Agreement?
Although you might think you can review your AI data processing agreement yourself, these agreements can be complex and have legal considerations you might not know about.
For low-risk agreements, such as if their terms are standard, a light review of your contract might be enough. However, if you’re dealing with more complex or vague terms, you should get a legal review to minimize your risks.
A lawyer can help you in various ways during a legal review, such as:
- Checking all sensitive data to ensure that it’s clear and easy to understand.
- Unpacking complex clauses about intellectual property (IP), ownership, and liability to ensure there are no hidden risks.
- Identifying problematic issues, such as if client data is used to train AI models.
- Checking that the agreement is compliant with all laws and regulations.
- Ensuring your duties and roles are realistic and possible to achieve.
- Making revisions to the agreement so it’s legally sound and transparent.
- Negotiating any terms that should be changed for a better deal and to prevent disputes.
Where to Find a Lawyer for an AI Data Processing Agreement
If you’re in need of a legal review of your AI data processing agreement, you might wonder where to find a lawyer who’s experienced and reputable. Online legal platforms like ContractsCounsel make the process easy and fuss-free.
As one of the largest online legal marketplaces, ContractsCounsel provides more than 1,000 lawyers who have been vetted on the platform. Clients can connect with experienced, professional lawyers for in-depth reviews of their contracts.
These are the easy steps to follow if you need a legal review of your AI data processing agreement on ContractsCounsel.
1. Start by going to the ContractsCounsel marketplace.
2. Post your request for a legal review. It’s free to do.
3. In your post, you should include a few details of what you require. This makes it easier for lawyers to help you.
4. Wait for lawyer bids. You’ll receive multiple bids from lawyers on the platform who are ready to assist you with a contract review.
5. Review the lawyers' profiles. Before selecting the best lawyer for your requirements, go through information provided on the platform. This includes the lawyers’ locations, years of experience, field of expertise, and client ratings for previous projects completed on the platform.
6. After reviewing the lawyers’ profiles, you can choose the best lawyer for your purposes and hire them.
