AI Content Generation Agreement: Key Terms, Ownership, Compliance
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What is an AI Content Generation Agreement?
With so many people using artificial intelligence (AI) to produce content, AI content generation agreements are becoming more popular and necessary.
These contracts explain and outline how generative AI is allowed to be used to create text, video, and other types of content. It features important terms related to intellectual property (IP), privacy, and more.
To better understand an AI content generation agreement, read the rest of this article. We’ll dive into what key terms are usually found in this contract, what to check for before signing it, and how a lawyer can help you draft or review it for accuracy, fairness, and legal soundness.
What is in an AI Content Generation Agreement?
An AI content generation agreement usually contains key components such as the following:
- Output ownership. This section of the agreement specifies if the client or provider of the content owns it.
- Roles. Duties of both parties must be defined so that AI is used with transparency.
- Usage. It’s important for the agreement to define how the content can be used and what’s prohibited.
- IP rights. The agreement should state that the content doesn’t violate any third-party IP rights.
- Liability and indemnification. This states who is responsible for issues such as copyright infringement.
- Disclosure. Since transparency is key, the agreement must clarify how the AI should be disclosed to users of the content.
- Term and termination. This specifies how long the agreement will last and governs rules for how the generated content is handled after contract termination.
What are Common Issues Found in AI Content Generation Agreements?
AI content generation agreements are prone to specific concerns. Being aware of these is important, such as when reviewing the contract, so that you notice any red flags and can seek clarification with the other party prior to signing it.
Legal Compliance
Since AI laws are evolving, it can be tricky to know what compliance is required. The agreement should be aligned with all relevant laws, not just those related to AI, such as privacy and copyright rules.
Unclear Ownership
If the contract doesn’t clearly specify which party owns the AI outputs, this can cause various problems, such as disputes or legal action. It’s also important to know who owns the content after the contract is terminated.
Lack of Disclosure
Without transparency in how AI has been used to generate content, this can result in problems such as a lack of client trust and business reputation harm. There are also legal risks involved. It’s essential for all parties involved to be open and honest about the use of AI.
Lack of Modification Provisions
If something goes wrong with the process, such as if there are biases introduced by the AI tools, there should be provisions included in the contract for how content can be changed. Human review or monitoring of systems is also advisable.
What Should You Do Before Signing an AI Content Generated Agreement?
You should never sign an agreement before you’ve had time to review it. Here are things to bear in mind so that you don’t rush into the process of accepting the agreement terms.
Review the Agreement
Take your time to read through everything in the contract, making sure you understand all the terms. You should make a note of anything that’s unclear or misleading.
A lawyer can help you review your AI content generated agreement for clarity. On online legal platforms like ContractsCounsel, you can easily request a review from a professional lawyer who’s been vetted on the platform. Here are the steps to follow:
1. Visit the ContractsCounsel marketplace.
2. Post your request for a legal review for free. Include a few details of what you require.
3. Wait for lawyer bids. Lawyers will send multiple bids to work with you on your project.
4. Review the lawyers' profiles. Before selecting the best lawyer for your requirements, view information provided on the platform, such as the lawyers’ locations, their years of experience and expertise, and client ratings for previous projects completed on the platform.
5. Select the best lawyer for your purposes and hire them.
Discuss the Agreement with the Other Party
Before agreeing to the contract, you should discuss any concerns you have with the other party. Negotiating aspects of the contract can help you get more favorable terms, such as regarding privacy, obligations, and duties.
A lawyer can help you with the negotiation process as they’re skilled at making offers, counter-offers, and pushing back without compromising the deal.
Consider Your Needs
It’s essential to think about what you need the AI content generation agreement for to check that it’s aligned with your goals. Focus on what the contract is for and if you need full ownership. This is the case if you want to engage in publishing or selling activities.
You should also consider if you need a long-term agreement or not. This will help you guide discussions with the other party.
Do You Need a Lawyer for an AI Content Generation Agreement?
Since AI content generation agreements can be tricky, it’s advisable to work with a professional lawyer who can help you in various ways. Here’s what a lawyer can do:
- They’ll review your agreement, not just read it. This ensures they’ll identify any risks or legal jargon that can be problematic.
- They’ll draft or revise the contract. They can make changes to the agreement so that it’s transparent, fair, and legal.
- They’ll negotiate for you. If you want to change anything in the document, your lawyer can help you by communicating with the other party and getting you a better deal.
- They’ll help you understand your legal risks. This will cover you if something goes wrong. They can also include clauses in the agreement that will protect you.
- They’ll keep you compliant. A lawyer will ensure that the agreement is aligned with all industry regulations and laws to keep you out of legal trouble.
Where to Find a Lawyer for an AI Content Generation Agreement
If you need to hire a professional, reliable lawyer to review, draft, or negotiate your AI content generation agreement, you can find one on ContractsCounsel.
On the platform, search for the best lawyer for your legal requirements according to factors such as their credentials, years of experience, and client ratings they’ve achieved on the platform. They have the skills to help you navigate all aspects of your AI content generation agreement so you can feel confident to sign it.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
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Bruce Burk practice is in the area of small business, labor and employment, contracts, real estate and civil litigation. Bruce has litigated over 40 trials as well as many appeals. He prioritizes client communication and satisfaction as well as delivering high quality work product.
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Daehoon P.
Daehoon P.
Corporate, M&A & Securities Lawyer | Managing Attorney, DP Counsel PLLC Practice Areas: Business Formation | Commercial Contracts | Contract Drafting & Review | Mergers & Acquisitions | Venture Capital | Securities Offerings | Franchise Law | Employment & Equity Compensation | Intellectual Property | Cross-Border Transactions About/Bio: I represent companies, investors, and fund sponsors in corporate transactions, commercial contracting, and private securities matters, from entity formation and early-stage financings to acquisitions, exits, and ongoing strategic counsel. As Managing Attorney of DP Counsel PLLC, I help clients structure transactions clearly, allocate risk thoughtfully, and move deals forward with documentation that is practical, enforceable, and aligned with business objectives. My practice includes both day-to-day commercial matters and more complex transactional work, including venture financings, private offerings, M&A deals, fund-related documents, and cross-border structuring. What I Do: Corporate & Commercial • Entity formation and structuring for corporations, LLCs, and limited partnerships • Operating agreements, shareholder agreements, and governance documents • Commercial contract drafting, review, and negotiation • Vendor, distribution, manufacturing, SaaS, and licensing agreements • Employment, consulting, confidentiality, and equity compensation agreements • Outside general counsel support for growing companies Securities & Private Capital • Private offerings under Regulation D and Regulation S • Private placement memoranda, subscription agreements, and investor documents • SAFE, convertible note, and priced equity financings • Venture capital and private fund formation matters • Fund governing documents and offering document packages • Securities law analysis for private capital raising transactions Mergers & Acquisitions • Letters of intent and term sheets • Stock purchase, asset purchase, and merger agreements • Due diligence coordination and transaction support • Disclosure schedules, closing documents, and post-closing matters • Earnouts, rollover equity, indemnity structures, and related deal terms • HSR, CFIUS, and related regulatory issue spotting for qualifying transactions Digital Assets & Emerging Technologies • Federal-law digital asset and token securities analysis • Entity structuring for blockchain and Web3 ventures • Digital asset fund and operating structures • AML/KYC documentation support and regulatory issue spotting Franchising • Franchise Disclosure Documents (FDDs) • Franchise agreements • Master franchise and area development agreements • Franchise structuring and registration coordination Real Estate Transactions • Commercial real estate acquisitions and dispositions • Real estate joint ventures and syndications • Commercial lease drafting and negotiation • Real estate investment structures and related offering documents Cross-Border & International • U.S. market entry and entity structuring for international clients • Delaware and multi-entity holding structures • Cross-border transaction planning and documentation • Coordination with foreign counsel and tax advisors on cross-border matters Why Clients Hire Me: • Big-law-level drafting with boutique responsiveness • Practical, business-focused advice grounded in execution reality • Clear scoping and transparent fee arrangements • Experience across financings, acquisitions, fund formations, and cross-border transactions Typical Projects: • Contract drafting and negotiation • Entity formation and governance packages • Private offering document suites • Venture financing documentation • M&A transactions from LOI through closing • Fractional or outside general counsel support Industries Technology | SaaS | FinTech | Digital Assets | E-commerce | Healthcare | Real Estate | Food & Beverage | Professional Services
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