What is an AI Services Agreement Review?
An AI services agreement is a contract signed by an AI services provider and a customer. It outlines how the AI services will be provided and used, and explains important concerns, such as defining intellectual property (IP) ownership, use of data, and more.
Reviewing this agreement is important to ensure that it’s fair to both parties, clear, and legally sound.
Read the rest of this article to explore what’s included in an AI services agreement, how to review it, and when to consult with a lawyer for assistance with the process.
What’s Included in an AI Services Agreement?
An AI services agreement usually contains key terms such as the following:
- Data usage. How the tools will be used and who owns them must be clearly specified.
- Intellectual property. This specifies who owns the AI models and provides provision for dealing with infringement.
- Liability. The provider wants to reduce their responsibility for issues such as AI-generated inaccuracies.
- Service levels (SLA). This part of the agreement explains what performance metrics will be used as well as security measures.
- Data protection. This ensures that all data is dealt with properly and stored securely. Protection measures must be aligned with all privacy and other relevant laws.
- Exit strategy. When the contract comes to an end, parties must agree to return or destroy the data, depending on what the provider stipulates.
How Can You Review an AI Services Agreement?
When you receive an AI services agreement, you should take some time to carefully review it for accuracy, fairness, and legal soundness to protect your interests. Here are some tips to follow.
Verify the Services
You want the services in the agreement to be aligned with what the AI tools will realistically achieve. Flag any vague words that can create confusion over what’s being provided.
Check Data Rights
Protecting user data is crucial in these agreements, so you should ensure you understand all the data rights. However, these documents can include confusing terms, so there should be clarity over customer data, output data, and more.
An important thing to look for in the contract is mention of using customer data to train or enhance AI models. There should be details included as to how these processes occur, and you should have the opportunity to revoke use should you choose.
Consider the Provider’s Duties
You should check what services the provider offers, beyond the AI tools. For example, the provider might make use of safeguards to prevent disclosure of confidential or sensitive data. Check the provider’s responsibilities against yours to ensure that you’re not taking on too much liability.
Scrutinize the IP Ownership
One of the most important aspects of your agreement is the IP ownership clause. You should confirm who owns prompts, outputs, and models that are developed during the working relationship.
It’s important to check that, as a user, you will have all the license rights to use the content or tools.
Think About Future Changes
The AI services might change in the future, so the agreement should state that you will receive notice ahead of time before any significant changes. This will ensure continuity for your business operations.
Look at Termination Clauses
The agreement should allow you to end the contract when you need to, but it needs to specify how to go about the process. You also want to check that you’ll get all your data or outputs upon termination.
Ask for Clarification
If there’s anything in the agreement that you don’t understand or isn’t clear, you shouldn’t ignore it. It could cause issues in the future, such as misinterpretation that can lead to disputes.
Query any vague or complex clauses with the other party so you can clarify everything. You have to ensure you understand everything in the agreement before agreeing to its terms.
Do You Need to Hire a Lawyer for an AI Services Agreement Review?
Although it’s not always a must to hire a lawyer to review your AI services agreement, especially if it’s straightforward and doesn’t put you at risk, there are good reasons to get a lawyer to read through it. Here’s a rundown of them.
- They’ll break down complex language. AI services agreements can be tricky to understand and filled with dense or technical language. A lawyer has experience in reviewing contracts and will clarify everything so it’s easy to understand.
- They’ll clarify ownership. To protect your rights, a lawyer will help you understand how your data will be used, handled, and shared under the agreement.
- They’ll identify unfair terms. If anything is one-sided or the agreement puts you at risk of taking on losses or liability, the lawyer will help you to revise the terms for fairness.
- They’ll check relevant laws. Since AI services agreements usually involve regulations related to privacy, a lawyer will check that they’re aligned with all laws to protect you.
- They’ll provide clarity on IP rights. This prevents confusion or disputes related to who owns the outputs created with the AI.
- They can negotiate terms. If you’d like to change anything in the contract, a lawyer will help you negotiate with the other party for a better deal.
How to Get a Review of Your AI Services Agreement
If you need a professional, legal review of your AI services agreement, you might wonder where you can find a reliable lawyer to help you. Online legal platforms like ContractsCounsel make the process simple.
As one of the largest online legal marketplaces, ContractsCounsel connects clients with lawyers who have been vetted on the platform. They have several years of experience in reviewing contracts and they can also make revisions to your agreements.
Follow these steps to get a review of your AI services agreement from a qualified, experienced lawyer.
1. Post your project for free on the ContractsCounsel marketplace.
2. Mention some details of what you require so lawyers know how to help you quickly.
3. Wait to receive lawyer bids. You’ll receive multiple bids from lawyers on the platform who are ready to help you.
4. Review the lawyers' profiles based on data provided by the platform, such as their location, years of experience, expertise, and client ratings.
5. Select the best lawyer for your purposes, for peace of mind that your contract is professional, balanced, and legal before you sign it.
