AI vendors will typically use traditional software licensing or SaaS models to sell their functionality.

While that generally makes sense, nuances associated with acquiring AI functionality need to be accounted for and negotiated.

  • Warranties, remedies, and indemnity provisions all need to account for the risks that AI presents.
  • When acquiring AI, you need to understand the type of data you are entering into the AI software and what the AI vendor will do with that data.
  • You need to negotiate adequate warranties and representations to protect your and your customers’ data.

AI is transformative but presents a variety of risks.

  • Who owns the data generated by AI functionality?
  • What rights do you have to utilize that information?
  • Can you be sued for commercially exploiting the data generated by the AI you are using?

I discuss these issues in this clip from my upcoming YouTube video.

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