AI Contract: Types, Key Features, Red Flags, Lawyer Help

Jump to Section

What is an AI Contract?

An AI (artificial intelligence) contract outlines how parties are allowed to use AI for tasks and projects. The contract specifies important details, such as the parties’ rights, duties, and more.

Read the rest of this article to explore the different types of common AI contracts, key features in AI contracts, red flags to note, and how a lawyer can help you draft or review these essential agreements.

What are Common AI Contracts?

Some of the most common AI contracts include:

  • AI licensing agreement. This agreement refers to how AI models and software can be used and licensed, such as their permitted and prohibited uses.
  • Data licensing agreement. Access to datasets for training AI or other tasks is involved in these contracts, which should specify data ownership and privacy.
  • Development agreement. This contract involves one party building or developing an AI model, with key terms including costs and milestones.
  • Joint development agreement (JDA). If two or more parties are involved in developing AI, the agreement has to allocate intellectual property (IP) rights and duties.

What are Key Features of AI Contracts?

To be legal and clear for all parties concerned, AI contracts must include key terms such as the following:

  • Intellectual property (IP). A big concern with AI contracts is who owns the IP, such as the model, data, and software improvements.
  • Data usage. The contracts must specify what happens to the data, such as after the contract ends.
  • Data protection. If personal or sensitive information is being processed or stored, the agreements need to specify what measures are in place to protect user privacy.
  • Accuracy. Since AI systems are known for making errors, the contracts must specify how liability can be shared between parties and limited.
  • Performance. There should be specific service levels the provider of the AI should meet, such as uptime guarantees.
  • Termination. How parties can end the contract and what happens to the data/models when the contract comes to an end must be clearly defined.
  • Human oversight. To ensure that AI is reviewed for accuracy, there should be provisions for human oversight.
  • Transparency. Parties using the AI model or software will want to know how it works and how information is protected.

What are Red Flags in AI Contracts?

Across different types of AI contracts, there are specific things to keep an eye out for when reviewing them. Hiring a lawyer is also beneficial because they will be able to identify risks and liabilities that you might miss without a legal background.

Here are some typical red flags to spot:

  • Broad rights. If the AI provider has full rights to inputs, outputs, software, or data, without any limits, this can put you at privacy or other risks.
  • Lack of protection. Things can go wrong with AI systems. If the contract doesn’t put protection measures in place, this can leave you as the user or customer exposed.
  • Unrestricted modifications. If the AI provider wants to make changes to the models or software, they should give the customer notice ahead of time.
  • Vague wording. If the contract is vague or general, this can hide risks or create confusion between parties.
  • Missing human oversight. There should be human review of the AI systems, especially if it’s allowed to make decisions.
  • Unclear services. You want the services scope to be transparent, with commitments from the AI provider, such as uptime guarantees.
  • Error remedies. Should the AI software or model fail, the provider should give you support to fix whatever went wrong to reduce the customer’s losses.

You can request a legal review of your AI contract by hiring a qualified lawyer on ContractsCounsel, one of the largest online legal marketplaces where clients can connect with vetted lawyers. Here’s how:

1. Go to the ContractsCounsel marketplace, where you can post your project for free.

2. You’ll receive multiple bids from lawyers directly on the platform who can assist you.

4. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.

5. Connect with a lawyer you think is best suited to your requirements and hire them.

How Can a Lawyer Help You with AI Contracts?

AI contracts can be dense and technical, which can make them challenging to review. Besides reviewing or drafting your AI contract for you, a lawyer can help you in various ways, such as the following.

  • They’ll identify any risks, such as one-sided clauses in the contract that give the provider broad rights.
  • They’ll help you to negotiate with the other party for fair, balanced terms.
  • They’ll protect your data and privacy rights, ensuring that sensitive information isn’t exposed or used in unauthorized ways.
  • They’ll clarify all IP ownership. This prevents future disputes between parties.
  • They’ll check all regulatory compliance. A lawyer is skilled at aligning the AI contract with all applicable regulations and laws.
  • They’ll ensure you have favorable exit terms. They’ll help you keep your data and development ownership if the agreement comes to an end.
  • They’ll consider what will happen if something goes wrong with the AI system or model. This enables you to add provisions for how to fix the issue, preventing hassles later.

Where to Find a Lawyer for an AI Contract

Finding a lawyer isn’t always easy, but you don’t have to cold-call traditional law firms, which can be time-consuming and expensive. The process of locating and hiring a lawyer is easier on online legal networks.

On ContractsCounsel, you can easily connect with vetted lawyers on the platform by finding an AI lawyer from the comfort of your home. All lawyers have the expertise and knowledge to guide you through all your AI concerns.

The platform provides comprehensive research on the lawyers’ profiles, enabling you to search for lawyers based on data such as their level of expertise, years of experience, client ratings, location, and previously completed projects.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our AI Contract Lawyers

Janice K. on ContractsCounsel
View Janice
5.0 (19)
Member Since:
August 30, 2023

Janice K.

Counselor
Free Consultation
Washington
24 Yrs Experience
Licensed in CA, WA
Empire College School of Law, Santa Rosa, CA

Twenty-plus years experience in family law, employment law, public agency law, federal, state and local contracts drafting and review, appellate practice.

Recent  ContractsCounsel Client  Review:
4.7

"Janice was friendly, kind and efficient. She always held my best interest in mind and was very respectful and helpful at all times. Thank you so much Janice!"

Steven G. on ContractsCounsel
View Steven
Member Since:
August 29, 2023

Steven G.

Attorney
Free Consultation
Cleveland, Ohio
17 Yrs Experience
Licensed in OH
Case Western Reserve University

I am an experienced transactional and trial attorney that litigates throughout Ohio. I have successfully tried numerous jury trials for clients from business disputes to those charged with offenses ranging from domestic violence to aggravated murder. My cases have been featured in the media, both television and print.

Joe C. on ContractsCounsel
View Joe
Member Since:
August 30, 2023

Joe C.

Associate Attorney
Free Consultation
Dallas, Texas
6 Yrs Experience
Licensed in TX
SMU Dedman School of Law

Born in Dallas, Texas, Joe Craddock represents clients in a range of litigation and transactional matters covering Contracts, Real Property, Oil and Gas, and Construction Defects.

Massa M. on ContractsCounsel
View Massa
Member Since:
August 30, 2023

Massa M.

Attorney
Free Consultation
Maryland
5 Yrs Experience
Licensed in MA, MD
Massachusetts School of Law

Highly disciplined attorney with over seven years administrative litigation experience. Capable of analyzing complex research, data, and documentation to prepare and represent individuals in sensitive cases. Recognized as a leader with the ability to perform work both autonomously and collaboratively as a member of a diverse legal team. Great problem-solving skills, strong multitasking capabilities and works well under strict deadlines. A professional with a sense of humor, strong work ethic and ability to build trust across all levels.

Tetyana J. on ContractsCounsel
View Tetyana
Member Since:
September 4, 2023

Tetyana J.

Attorney/Owner
Free Consultation
Houston
4 Yrs Experience
Licensed in TX
University of Houston

I am a highly accomplished and dedicated immigration attorney, renowned for providing top-tier immigration legal services that consistently exceed expectations. I am known for my expertise in offering exceptional representation across a broad spectrum of immigration cases, including EB-2 National Interest Waivers (NIW), O visas, EB-1A, family-based immigration, TPS, Adjustment of status, asylum petitions, and skillful advocacy in Immigration Court proceedings. My clients rely on my unwavering commitment to their immigration needs, trusting in my in-depth knowledge of the intricate legal processes and my steadfast determination to secure favorable outcomes. My reputation as a leading authority in the field is a testament to my unwavering commitment to delivering unparalleled, high-quality immigration services. In addition, I am fluent in Ukrainian and Russian.

Luisa A. on ContractsCounsel
View Luisa
Member Since:
September 5, 2023

Luisa A.

Attorney
Free Consultation
Marietta, Georgia
5 Yrs Experience
Licensed in GA
Mississippi College School of Law

Luisa Alejos is the founder and owner of L.P.A. Law. She established her own firm to focus on providing clients with an exceptional level of personal service and support, trustworthy legal advice, and compassionate advocacy, consistent with her dedication to making service a cornerstone of her law practice and life. As a solo practitioner, her focus is personal injury, workers' compensation, and misdemeanor criminal defense but she also helps clients with contract drafting- particularly construction contracts and prenuptial agreements.

Annie G. on ContractsCounsel
View Annie
Member Since:
September 5, 2023

Annie G.

Contractor
Free Consultation
Chicago, IL
28 Yrs Experience
Licensed in OH
Capital University Law School

Attorney licensed and in good standing in the State of Ohio. Worked in the corporate division of a large law firm (Squire, Sanders & Dempsey), and as inside counsel for a technology company (America Online). Lived in 6 different states in a 12 year period. Took some time off of legal work to raise 4 kids. During that time kept active as a volunteer - Houston Volunteer Lawyers Program, Legislative chair of school board for 3 years, President of school PTA, PADS and local food pantry. Currently working as a Consultant for a health care company (Fast Pace Health). Looking to get back to transaction legal work. Can work remotely and travel to Ohio when necessary. Thank you.

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Artificial Intelligence lawyers by top cities
See All Artificial Intelligence Lawyers
AI Contract lawyers by city
See All AI Contract Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city