4 Ways to Approach the Nuances of AI Vendor Contracts

Intellectual property partner Ira Kalina and associate Reeya Thakrar coauthored an article for Law360 in which they present a phased approach to direct a customer’s diligence and to better assess whether additional contractual terms — such as new definitions, license restrictions, expanded representation and warranties, indemnification obligations or carveouts to limitations of liability — should be included in artificial intelligence (AI)/machine learning (ML) agreements.

Kalina and Thakrar recommend focusing on the following:

1. Inputs: Start with understanding the inputs (e.g., input data) to the AI/ML-based platform.
2. Outputs: Determine the range of outputs (e.g., generated content, AI learnings, trained models).
3. Operational Risks: Analyze risks associated with the technology itself.
4. External Risks: Mitigate risks from the changing legal and regulatory landscape and industry standards.

The full article is available for Law360 subscribers.