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  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Commercial Law
  • schedule 90 minutes

Contracting Pointers for AI Providers and Companies Incorporating AI in Their Products and Services

Navigating Data Ownership and Licensing, IP Representations and Warranties, Regulatory Compliance, and Risk Allocation

$297.00

This course is $0 with these passes:

CLE
ALL
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Description

Businesses across every industry are considering ways to incorporate AI into their products and services. AI providers can be the actual developers of the foundational model for an AI solution or application developers may build on that foundational model or otherwise make it available as part of larger offerings. All businesses that incorporate AI into their products and services need to consider various contractual provisions, whether their contracts take the form of "standard terms and conditions" agreed to via click-through mechanisms or negotiated contracts.

AI service providers must apply well-known legal concepts to lesser-known AI elements in their user agreements. Parties experienced with SaaS agreements will find some familiar landscape, and indeed AI solutions are often provided by SaaS. However, AI providers should be prepared for unique issues and more complexity--and potential risks and liabilities--associated with an array of types and sources of data that train, fuel, guide, emanate from, and modify generative AI-based models, solutions, and systems.

Some of the key issues and provisions that should be addressed by AI providers in their user agreements include third-party terms from frontier model providers; training data and prompts; liability for outputs; intellectual property-related representations, warranties and indemnities; ownership of AI output and improvements to AI models; data privacy considerations; and compliance with current and future laws and regulations.

Listen as our authoritative panel discusses the unique issues and risks presented by AI and the key concepts AI providers should address in their user agreements to protect their legal and financial interests as well as mitigate their risk of liability.

Presented By

Maureen E. Fulton
Partner
Koley Jessen PC LLO

As the chair of the Data Privacy and Security practice area, Ms. Fulton dedicates her practice to advising businesses in developing comprehensive privacy and data security programs. She uses her experience as a Certified Information Privacy Professional (CIPP/US) to guide companies in navigating through state, federal, and international privacy laws and regulations. She leverages her expertise in data privacy to assist clients with a wide range of matters, including compliance counseling, risk management, incident response, and litigation. Ms. Fulton has extensive experience in performing data privacy and security due diligence for buyers and sellers in merger and acquisition transactions. She also assists clients in preparing for and remedying data breach incidents, including managing state-specific breach notifications and identifying the associated litigation risks. She also acts as interim privacy counsel when clients need additional support on privacy-related matters.

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Jack Horgan
Shareholder
Koley Jessen PC LLO

With a focus on representing middle-market technology companies in connection with their commercial endeavors, Mr. Horgan counsels clients on both the provider-side and the procurement-side of software, technology, and IP commercial transactions. He routinely handles transactions involving: software licensing, software distribution, software development, SaaS, PaaS, IaaS, cloud computing, outsourcing, ERP solutions, IoT, co-location arrangements, database licensing, artificial intelligence, NFTs, blockchain, mobile applications, patent and technology licensing, joint development arrangements, and IT professional services.

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Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, February 13, 2024

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Overview: how businesses across every industry are incorporating AI into their products and services
  2. Key terms and considerations for AI providers' user agreements with customers
    1. Disclosure/due diligence of AI use
    2. Performance standards
    3. Third-party AI service acknowledgment
    4. Training data and prompts
    5. Ownership and licensing of IP rights
    6. Acceptance of AI risks
    7. Limitation of liability
    8. Data privacy considerations
    9. Legal compliance and protecting rights in a changing legal and regulatory environment
    10. Confidentiality provisions
  3. Implementing additional terms for new or existing customers
  4. Practical tips and key takeaways

The panel will address these and other key issues:

  • How are businesses incorporating AI in their products or services and who is considered an AI provider?
  • What are some of the unique risks and liabilities associated with AI that should be addressed in AI providers' user agreements with their customers?
  • How do current data privacy laws regulate the use of AI?
  • How can AI providers mitigate their exposure to breach of contract claims from their customers when legal and regulatory developments continue to evolve and change?