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: $700.00
- Lawyers available: 81 artificial intelligence lawyers
- Clients helped: 55 recent AI software agreement projects
- Avg lawyer rating: 4.9 (12 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 Development contract for a software Drafting
- New Jersey
- 6 lawyer bids
- $350 - $1,200
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
Delaware On-premise software contract between Delaware incorporated SaaS company and government agency Drafting
- Delaware
- 2 lawyer bids
- $700 - $1,500
Florida B2B SaaS Software License Agreement Drafting
- Florida
- 11 lawyer bids
- $350 - $2,000
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
Michael M.
www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.
"Michael's expertise and judgment impressed me. I brought him in for contract advisory work, and he quickly asked the questions I hadn't considered, identified the risks that mattered, and set aside the ones I had wrongly prioritized. He changed how I understood the contract. He is an excellent advisor - highly recommended."
Jeff C.
Experienced and broad based corporate/business attorney and Outside General Counsel (OGC), for start-ups, small businesses and growing companies of all sizes, advising and assisting clients with corporate and LLC formation, contracts and agreements, internet and terms of use/service agreements, trademarks and intellectual property protection, the purchase and sale of businesses (M&A), labor and employment matters, compliance and risk management, corporate governance, and commercial leasing matters. See other reviews on my website at www.ogcservices.net/reviews
"Jeff is quick, responsive and his work is excellent. I had a great experience, wouldn't hesitate to use his services again."
Rene H.
I am an attorney licensed in both California and Mexico. I offer a unique blend of 14 years of legal expertise that bridges the gap between diverse legal landscapes. My background is enriched by significant roles as in-house counsel for global powerhouses such as Anheuser-Busch, Campari Group, and Grupo Lala, alongside contributions to Tier 1 law firms. I specialize in navigating the complexities of two pivotal areas: AI/Tech Innovation: With a profound grasp of both cutting-edge transformer models and foundational machine learning technologies, I am your go-to advisor for integrating these advancements into your business. Whether it's B2B or B2C applications, I ensure that your company harnesses the power of AI in a manner that's not only enterprise-friendly but also fully compliant with regulatory standards. Cross-Border Excellence: My expertise extends beyond borders, with over a decade of experience facilitating cross-border operations for companies in more than 20 countries. I am particularly adept at enhancing US-Mexico operations, ensuring seamless and efficient business transactions across these territories.
"Rene gets the job done in an effective and efficient manner. Rene understood the goals of the project I hired him for; delivered and reached those goals with his knowledge and experience; as well as consistently following up on time, and is pleasant to work with."
Nicole C.
Nicole expertly and creatively works with businesses and individuals in all types of employment and business relations issues. She investigates workplace disputes as a neutral third party, drafts/reviews severance and hiring agreements, advises on day-to-day workplace issues, and reviews all kinds of business contracts. Nicole represents individuals, small businesses, non-profit organizations, labor unions, and benefits funds in various industries including public sector, entertainment, health care, education, transportation, construction, and communications. She has represented clients in federal and New York State courts, administrative proceedings, and arbitration hearings. Nicole is admitted to practice in New York.
"Fast, efficient and thorough! Highly recommended for short projects!"
J.R. S.
Experienced Attorney with an MBA in Finance who provides a business-oriented mindset and thrives in a collaborative environment with a-typical challenges. Possesses exceptional skills in legal research, drafting and enforcing contracts, skillful in negotiations and mediations, drafts extremely persuasive pleadings, attacks depositions with zeal for my clients. Experience includes Business Management and IT Consulting with a successful track record managing outside relationships, associated costs, and optimizing outcomes for client(s). Effectively restructures antiquated business processes and incorporates technology and best practices to effectuate progressive outcomes for business clients. Partners collaboratively with business leaders to advance company objectives while minimizing risk to ensure internal and external compliance, increased profitability, and diverse practices. Dynamic communicator with the interpersonal skills to build trusting relationships with executives, management, and employees of various backgrounds, expertise, and styles.
"JR was fantastic. Quick to digest a complex, nuanced situation and generated an effective document as agreed-upon. Highly recommend!"
Tiffany O.
Tiffany received her Juris Doctorate from the J. Reuben Clark Law School, Magna Cum Laude. She is admitted to the Utah State Bar and the New Mexico State Bar. She practices in the areas of real estate, general business, business formation, employment agreements, and civil litigation.
"Overall great experience, Tiffany was very easy to work with even though we are in different time zones."
January 2, 2024
Elaine T.
Trusted Intellectual Property Attorney, Advisor and Strategic Partner
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Browse Lawyers NowLawyer Reviews for AI Software Agreement Projects
Software Administrative Contract
"project was delivered on a timely basis"
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."
Customer Support & Maintenance Agreement
"Happy to work with Donya again. She was able to complete in the time we had."
Review JrSOCtriage License
"Muhammad did great work very quickly and was responsive to my time needs at his own expense. I am grateful."
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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