AI and Big Data: Why You May Not Want to Let Your SaaS Agreements Auto-Renew Anymore

Intellectual property partner Robert Cannuscio and associate Joseph Decker co-authored an article for The Legal Intelligencer that explores the implications of artificial intelligence (AI) and big data on Software as a Service (SaaS) agreements, specifically regarding auto-renewal clauses.

The co-authors highlight how advancements in AI and big data analytics have empowered SaaS providers to collect and analyze vast amounts of user data, enabling them to personalize services and optimize pricing dynamically. However, this also raises concerns about the fairness and transparency of auto-renewal clauses in SaaS agreements. The article suggests that customers may want to reconsider allowing auto-renewal, as it could lead to unexpected price increases or changes in service terms based on data analysis by the provider.

Cannuscio and Decker also emphasize the importance of understanding the terms of SaaS agreements and negotiating favorable terms to protect the interests of customers in this evolving landscape of AI and big data.