Artiffical Intelligence (AI) Use Agreement

An Artificial Intelligence (AI) Use Agreement is a contractual document that outlines the terms and conditions governing the deployment, access, and usage of AI technologies and services by individuals or organizations. It establishes the rights, responsibilities, and liabilities of the parties involved in utilizing AI systems, ensuring clarity and legal compliance in their AI-related activities.

What it is: An AI Use Agreement is a legally binding contract that governs the relationship between the AI provider and the user, defining the scope of AI services, data usage, intellectual property rights, confidentiality, and other relevant aspects pertaining to AI deployment.

When it is used: This agreement is used whenever individuals or organizations intend to utilize AI technologies, platforms, or solutions, either through procurement from AI vendors or development in-house. It is employed in various sectors, including technology, healthcare, finance, manufacturing, and more, where AI plays a significant role in enhancing operations, decision-making, and innovation.

By whom: The AI Use Agreement is typically drafted by legal professionals or AI vendors’ legal teams, taking into account the specific requirements, risks, and compliance standards relevant to AI deployment. It is signed by both parties involved in the AI arrangement, including the AI provider (vendor or developer) and the user (client or licensee).

Legal base: The legal basis for an AI Use Agreement may include contract law, intellectual property law, data protection regulations (e.g., GDPR, CCPA), industry-specific standards, and emerging AI ethics frameworks. Depending on the jurisdiction and the nature of AI applications, additional legal considerations such as liability, accountability, and transparency may apply.

Potential fines and situations when they may be imposed: Failure to comply with the terms of the AI Use Agreement can lead to various legal and financial consequences, including breach of contract claims, data privacy violations, intellectual property disputes, regulatory penalties, reputational damage, and loss of trust among stakeholders. It is essential for parties entering into AI agreements to ensure clarity, transparency, and compliance with applicable laws and ethical guidelines to mitigate risks and foster successful AI deployments.

The Artiffical Intelligence (AI) Use Agreement template serves as a flexible form applicable across various situations. Delivered in Microsoft Word, it is crafted in straightforward language for effortless utilization and modification.