AI Software Agreement: Key Terms, Review Tips, Legal Help
Jump to Section
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
Delaware On-premise software contract between Delaware incorporated SaaS company and government agency Drafting
- Delaware
- 2 lawyer bids
- $700 - $1,500
Washington Sales contract for B2B web application and website development company Drafting
- Washington
- 13 lawyer bids
- $1 - $2,500
Wyoming Review and adapt a B2B contract regarding a software service that includes a product integration but that now needs to be whitelabeled Drafting
- Wyoming
- 6 lawyer bids
- $800 - $2,499
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
New York Disclaimers Needed For New App Focusing on DIY Mushroom Growing to Cover Company From Liability For Anyone Growing Illegal Mushrooms Drafting
- New York
- 8 lawyer bids
- $400 - $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.
Need help with an AI Software Agreement?
Meet some of our AI Software Agreement Lawyers
Rhea d.
Rhea de Aenlle is a business-savvy attorney with extensive experience in Privacy & Data Security (CIPP/US, CIPP/E), GDPR, CCPA, HIPAA, FERPA, Intellectual Property, and Commercial Contracts. She has over 25 years of legal experience as an in-house counsel, AM Law 100 firm associate, and a solo practice attorney. Rhea works with start-up and midsize technology companies.
"Rhea is very knowledgable, quick, and provides great communication."
Heather B.
Heather B.
Delivering proactive and strategic guidance to health and fitness professionals and entities as they scale.
"Heather has worked on several projects for me to include a demand letter and small claims litigation preparation. Heather is direct, meticulous, and very responsive. She is everything you would want in an attorney. Her efforts brought my project to a successful conclusion. I will not hesitate to work with her again."
Ted A.
Equity Investments, Agreements & Transactions | Securities & Lending | Corporate Governance | Complex Commercial Contracts | Outside General Counsel & Compliance
"Ted was extremely responsive, knowledgeable, easy to work with and was able help me the same day. I would confidently recommend him in the future."
Valerie L.
Valerie is a passionate attorney specializing in Employment Law, Family Law, Personal Injury, and Business. With a strong foundation in the legal field, she is committed to helping individuals navigate the intricacies of their legal agreements. Valerie prioritizes open communication, ensuring her clients feel seen, understood, and confident as they make important decisions for their future. She is committed to empowering clients to become the best version of themselves while addressing their unique needs throughout the process.
"I had an excellent experience working with Valerie on my prenup. She was knowledgeable and thorough. She took time to answer my questions and explain items in detail. I felt completely supported throughout the entire process. Thank you for your professionalism and for making an otherwise stressful task feel more manageable. Highly recommend!"
Justin K.
I have been practicing law exclusively in the areas of business and real estate transactions since joining the profession in 2003. I began my career in the Corporate/Finance department of Sidley's Los Angeles office. I am presently a solo practitioner/freelancer, and service both business- and attorney-clients in those roles.
"Justin was great to work with, we hope to work with him again in future."
Tina T.
I am a New Mexico licensed attorney with many years of world experience in real estate, transactional law, social security disability law, immigration law, consumer law, and estate planning.
December 27, 2022
Brent W.
Brent has been in practice since 2007 and been the principal attorney and owner of The Walker Firm, LLC since 2014. Brent focuses on providing an array of general counsel services to individuals and companies in a variety of industries.
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for AI Software Agreement Projects
SaaS Software Agreement
"Great work, response and informative consultation made for a smooth and simple process."
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."
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 ReviewNeed help with an AI Software Agreement?
Artificial Intelligence lawyers by top cities
- Austin Artificial Intelligence Lawyers
- Boston Artificial Intelligence Lawyers
- Chicago Artificial Intelligence Lawyers
- Dallas Artificial Intelligence Lawyers
- Denver Artificial Intelligence Lawyers
- Houston Artificial Intelligence Lawyers
- Los Angeles Artificial Intelligence Lawyers
- New York Artificial Intelligence Lawyers
- Phoenix Artificial Intelligence Lawyers
- San Diego Artificial Intelligence Lawyers
- Tampa Artificial Intelligence Lawyers
AI Software Agreement lawyers by city
- Austin AI Software Agreement Lawyers
- Boston AI Software Agreement Lawyers
- Chicago AI Software Agreement Lawyers
- Dallas AI Software Agreement Lawyers
- Denver AI Software Agreement Lawyers
- Houston AI Software Agreement Lawyers
- Los Angeles AI Software Agreement Lawyers
- New York AI Software Agreement Lawyers
- Phoenix AI Software Agreement Lawyers
- San Diego AI Software Agreement Lawyers
- Tampa AI Software Agreement Lawyers
ContractsCounsel User
Software contract review
Location: Utah
Turnaround: Less than a week
Service: Contract Review
Doc Type: Software Agreement
Page Count: 10
Number of Bids: 14
Bid Range: $350 - $1,500
ContractsCounsel User