AI Software Agreement: Key Terms, Review Tips, Legal Help
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Quick Facts — AI Software Agreement Lawyers
- Avg cost to draft a Software Agreement: $680.00
- Avg cost to review a Software Agreement: $720.00
- Lawyers available: 80 artificial intelligence lawyers
- Clients helped: 51 recent AI software agreement projects
- Avg lawyer rating: 4.89 (11 reviews)
What is an AI Software Agreement?
An AI software agreement is a contract signed by an AI technology provider and client. It specifies how the AI tools can be used by the client and what services the provider offers.
You might need an AI software agreement if you’re involved in developing or using AI in any way that could result in issues such as ownership concerns or legal obligations. Examples include if you’re licensing AI software, training AI on data, or building AI for a client.
Since an AI software agreement can involve risks, such as privacy violations, it has to be clear and thorough.
Read the rest of this article to learn more about AI software agreements, how to review and negotiate them, and when to consult a lawyer for professional guidance.
How Do AI Software Agreements Vary from Traditional Software Agreements?
One of the biggest differences between AI software agreements and traditional software agreements is that AI systems provide variable outputs. They’re not always identical as compared to what you’ll use in traditional systems. Drafting an AI software agreement therefore requires adjustments in how liability and performance metrics are handled and defined.
Another important difference to know is that AI systems and rules constantly change and evolve. This means that there should be information for parties about how changes made to the software will be handled.
What are Common Mistakes Users Make with AI Software Agreements?
When drafting AI software agreements, users might make the following mistakes:
- Using standard terms. This prevents you from dealing with specific risks, roles, and liabilities related to the AI software being used.
- Lack of data usage provisions. The input data will be stored and used, which could violate privacy rules. Not being aware of this can lead to disputes or losses.
- Not defining ownership. If there’s no clarity about who owns the AI outputs, this can cause uncertainty and misaligned expectations between parties.
How Can You Review and Negotiate an AI Software Agreement?
Once your AI software agreement has been drafted, you’ll want to review it and possibly negotiate some of its terms before agreeing to it. Here are some tips on how to do this.
Note Ambiguous Phrasing
If there’s anything in the contract that isn’t clear and specific, you should flag it to discuss it with the other party. This will protect you against hidden risks.
Check Data Usage
You want to understand how the data is being used and stored, and if it’s allowed to be shared. If you don’t have clarity, you could be vulnerable to your sensitive information being exposed.
Know Who Owns Outputs
You can’t assume that you’ll own everything the AI software creates. If it’s not specified in the agreement, you should check if you can use the outputs for commercial purposes.
When reviewing the agreement, it helps to consider what you need the tools for so that the permitted usage is aligned with your requirements.
Ensure Performance Meets Your Expectations
You don’t want your use of the software to be interrupted, so check what the agreement says about uptime commitments from the AI provider. You should also get information about the support you can expect to receive.
Request Notifications for Changes
When discussing any concerns you have with the provider, you should request notification for changes they make to the software if it’s not included in the agreement. This will prevent delays or other issues when using the software.
Don’t Ignore Compliance
To protect yourself against legal issues in future, check what the agreement says about compliance, such as in terms of privacy laws. This should be reviewed with your roles and responsibilities in mind so that you don’t accidentally violate any rules.
Should You Hire a Lawyer for Help with an AI Software Agreement?
You don’t always have to work with a qualified lawyer for help with AI software agreements, but they can assist you in various ways, such as by reviewing the contract and negotiating its terms. Here are some details of how they will help you.
- They’ll look for hidden risks in the contract. This prevents too many risks from being your responsibility, such as if the AI makes errors.
- They’ll check how your data is used and stored.
- They’ll explain all intellectual property (IP) rights.
- They’ll confirm that all teams in the agreement are compliant with relevant laws and regulations.
- They’ll negotiate terms you wish to change, such as by pushing for higher caps to balance liability.
- They’ll get all agreed-on negotiations down in writing so that parties don’t dispute them later.
If you’d like a review of your AI software agreement, you can hire a lawyer from an online legal platform like ContractsCounsel, one of the largest online legal marketplaces where clients can hire qualified lawyers who have been vetted on the platform.
Here is how to request a review of your AI software agreement:
1. Go to the ContractsCounsel marketplace and post your project for free.
2. Receive multiple bids from lawyers directly on the platform who can assist you.
3. 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.
4. Hire a lawyer who is best suited to your requirements.
Why Should You Hire a Lawyer From ContractsCounsel?
ContractsCounsel offers a wide selection of vetted lawyers who can handle your legal tasks and provide support while offering cost-effective services. Some of the platform’s benefits include:
- Fixed-fee pricing. All costs are transparent and you can compare quotes to get the best deal.
- Quick and easy access to vetted professional lawyers. All lawyers on the platform have been screened.
- Stress-free searching. You can find a lawyer for your requirements from the comfort of your home.
- Data conveniently on the platform. Review the lawyers’ profiles before hiring one for your contract review or negotiation. The platform provides lots of data, such as regarding the lawyers’ expertise and experience.
See Real Software Agreement Projects
New Jersey VectorViewer Product License Agreement Drafting
- New Jersey
- 7 lawyer bids
- $500 - $1,500
Delaware Customer Support & Maintenance Agreement Drafting
- Delaware
- 2 lawyer bids
- $800 - $1,200
California Termination of Perpetual Contract Review
- California
- 4 lawyer bids
- $550 - $750
Minnesota Review of Software License Agreement with Data Processing Agreement for compliance with GDPR and other Data Privacy compliance Review
- Minnesota
- 2 lawyer bids
- $750 - $995
Florida B2B SaaS Software License Agreement Drafting
- Florida
- 11 lawyer bids
- $350 - $2,000
California Master Software Services Agreement - free consult Review
- California
- 16 lawyer bids
- $10 - $3,750
See all Software Agreement 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.
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Meet some of our AI Software Agreement Lawyers
Alexander N.
Having overseen over $1.2 billion in transaction value, we are able to provide top-tier service at affordable rates, with much more personalized attention and fast turnarounds. After working for a AM Law Top 100 firm, I started my own firm and have been lucky enough to represent numerous conglomerates (FOX, Endeavor, etc.), promising startups, small businesses and private individuals. Our areas of expertise - Business Formations and Operating Agreements; Capital Raises and Debt Financing; Commercial Transactions; M&A; Real Estate; Intellectual Property; Employment and Hiring; Outside General Counsel; Corporate Agreements and Governance; Litigation and Dispute Resolution. We have been featured in The Wall Street Journal, Marketwatch, Yahoo Finance, Variety, Business Insider, Los Angeles Magazine, the LA Times, and others. We are driven by an unwavering commitment to our clients, going above and beyond to deliver results.
"Very fast turnaround time, easy to work with, appreciate the contract review!"
Scott S.
I specialize in business law and contracts, with an emphasis on commercial transactions and negotiations, document drafting and review, employment, business formation, e-commerce, technology, healthcare, privacy, commercial real estate, data security and compliance. Specifically, I've drafted, reviewed and/or negotiated thousands of MSA's, NDA's, TOS', SAAS, sales, service, managed services, referral, reseller, royalty, finder’s fee, employment, contractor, consulting, advertising, marketing, manufacturing, distribution, management, artist, author, agency, photography, rental, lease, vendor, partnership, website, platform, application, privacy, non-compete, non-circumvent, confidentiality, IP ownership and licensing agreements so I'm very familiar with these types of documents. Practicing law since 2006, I worked in-house before starting my own solo practitioner law firm in 2011. I've worked with individuals and start-ups, Fortune 500 companies, and every type of entity in between, always providing quality legal work that fits the exact needs of the person and/or business. I’m a graduate of the Benjamin Cardozo Law School and also have an English degree from Penn.
"Very helpful and appreciated being able to go over the contract revisions and clarification questions I had, thank you!"
Morgan S.
Corporate Attorney that represents startups, businesses, investors, VC/PE doing business throughout the country. Representing in a range of matters from formation to regulatory compliance to financings to exit. Have a practice that represents both domestic and foreign startups, businesses, and entrepreneurs. Along with VC, Private Equity, and investors.
"Morgan was very detailed in his response and explanations. He showed me red flags, potential solutions, and where problems may occur. He explained some high risk clauses that did not make sense and I should not accept. Overall, Morgan saved me from bad business deal when I flagged his concerns to the counterparty. Thanks Morgan!"
Deanna M.
I have had the opportunity to experience the legal industry in a private setting and public sector, representing individuals, companies of all sizes, as well as the Government. As a strong leader, I take pride in continuously tackling new challenges and learning as much as possible, always finding answers and delivering results to my clients. I received my JD from Ave Maria School of Law in Naples, Florida and went on to pass the Uniform Bar Exam. I am currently licensed in Minnesota and North Carolina. I have experience in real estate law, estate planning, contract law, family law, criminal law, and more.
"Deanna is very professional, easy to work with, clarifies doubt quickly, fast turnaround and value for money. I am very happy with the service. I would highly recommend her for any services that she offers."
Joseph B.
I am an attorney licensed in Indiana. I currently work primarily on civil litigation, landlord/tenant matters, and adoption cases. I have over 10 years of labor relations experience, including negotiations, labor contract enforcement, and arbitration experience. I also work with several non-profit groups representing LGBTQ+ groups and indigent clients in housing matters.
"Joseph gave me a great deal on a detailed lease with everything I needed included. Would definitely recommend!"
July 27, 2023
James N.
I'm a Chicago native and Kansas City transplant that has made regulatory compliance and civil administrative litigation for heavily regulated industries my niche for the past decade.
July 30, 2023
Diamond R.
July 29, 2023 My name is Diamond Simpson Roberts, ESQ, MSPH and I am convinced that I can be a value added asset to most any company. As the first in my family to graduate a four-year university, I graduated from Wayne State University Law School in 2000 but could not afford a bar prep course upon completion. After over 20 years, I sat for the July 2022 UBE, successfully passed and am currently licensed in three states! This is an example of my self-motivation, internal drive and passion. I offer over 28 years of diverse experience in healthcare, strategy, sales/marketing, legal/policy and business savvy. I have many years building, leveraging, and sustaining long term relations to drive revenue as an entrepreneur and for corporations. My analytical strengths provide me with an innate ability to think through tough situations/topics while viewing both vantage points (which is excellent for law and life). I have been appointed to serve on numerous committees due to my heightened ability to identify client issues and priorities and provide solutions based upon relevant products, services and needs. I have led teams with and without authority; specifically, I have managed teams for an Adult Foster Care Facility called Etonne Cares, during my post-graduate fellowship with the largest Catholic Healthcare System in the U.S. and during my two-year executive order appointment with the Federal Government (Presidential Management Fellowship). Most importantly, I am a collaborative team player who knows how to improvise, overcome and adapt! I offer numerous years of being a pharmaceutical trainer and being an adjunct using the online platform. I welcome the opportunity to continue in the interview so that I may further highlight the skills I can (and will) contribute to my success in the role. Respectfully, Diamond Simpson Roberts, ESQ, MSPH DQSSIMPSON@GMAIL.COM M: 313-942-6747
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Browse Lawyers NowLawyer Reviews for AI Software Agreement Projects
On-premise software contract between Delaware incorporated SaaS company and government agency
"Chris helped us put together a quick SaaS contract. HE is very nice and professional."
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"project was delivered on a timely basis"
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"Great work, response and informative consultation made for a smooth and simple process."
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
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ContractsCounsel User
Software Agreement
Location: New Hampshire
Turnaround: Less than a week
Service: Drafting
Doc Type: Software Agreement
Number of Bids: 15
Bid Range: $325 - $1,750
ContractsCounsel User