AI Software Agreement: Key Terms, Review Tips, Legal Help
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Quick Facts — AI Software Agreement Lawyers
- Avg cost to draft a Software Agreement: $680.00
- Avg cost to review a Software Agreement: $700.00
- Lawyers available: 81 artificial intelligence lawyers
- Clients helped: 55 recent AI software agreement projects
- Avg lawyer rating: 4.9 (12 reviews)
What is an AI Software Agreement?
An AI software agreement is a contract signed by an AI technology provider and client. It specifies how the AI tools can be used by the client and what services the provider offers.
You might need an AI software agreement if you’re involved in developing or using AI in any way that could result in issues such as ownership concerns or legal obligations. Examples include if you’re licensing AI software, training AI on data, or building AI for a client.
Since an AI software agreement can involve risks, such as privacy violations, it has to be clear and thorough.
Read the rest of this article to learn more about AI software agreements, how to review and negotiate them, and when to consult a lawyer for professional guidance.
How Do AI Software Agreements Vary from Traditional Software Agreements?
One of the biggest differences between AI software agreements and traditional software agreements is that AI systems provide variable outputs. They’re not always identical as compared to what you’ll use in traditional systems. Drafting an AI software agreement therefore requires adjustments in how liability and performance metrics are handled and defined.
Another important difference to know is that AI systems and rules constantly change and evolve. This means that there should be information for parties about how changes made to the software will be handled.
What are Common Mistakes Users Make with AI Software Agreements?
When drafting AI software agreements, users might make the following mistakes:
- Using standard terms. This prevents you from dealing with specific risks, roles, and liabilities related to the AI software being used.
- Lack of data usage provisions. The input data will be stored and used, which could violate privacy rules. Not being aware of this can lead to disputes or losses.
- Not defining ownership. If there’s no clarity about who owns the AI outputs, this can cause uncertainty and misaligned expectations between parties.
How Can You Review and Negotiate an AI Software Agreement?
Once your AI software agreement has been drafted, you’ll want to review it and possibly negotiate some of its terms before agreeing to it. Here are some tips on how to do this.
Note Ambiguous Phrasing
If there’s anything in the contract that isn’t clear and specific, you should flag it to discuss it with the other party. This will protect you against hidden risks.
Check Data Usage
You want to understand how the data is being used and stored, and if it’s allowed to be shared. If you don’t have clarity, you could be vulnerable to your sensitive information being exposed.
Know Who Owns Outputs
You can’t assume that you’ll own everything the AI software creates. If it’s not specified in the agreement, you should check if you can use the outputs for commercial purposes.
When reviewing the agreement, it helps to consider what you need the tools for so that the permitted usage is aligned with your requirements.
Ensure Performance Meets Your Expectations
You don’t want your use of the software to be interrupted, so check what the agreement says about uptime commitments from the AI provider. You should also get information about the support you can expect to receive.
Request Notifications for Changes
When discussing any concerns you have with the provider, you should request notification for changes they make to the software if it’s not included in the agreement. This will prevent delays or other issues when using the software.
Don’t Ignore Compliance
To protect yourself against legal issues in future, check what the agreement says about compliance, such as in terms of privacy laws. This should be reviewed with your roles and responsibilities in mind so that you don’t accidentally violate any rules.
Should You Hire a Lawyer for Help with an AI Software Agreement?
You don’t always have to work with a qualified lawyer for help with AI software agreements, but they can assist you in various ways, such as by reviewing the contract and negotiating its terms. Here are some details of how they will help you.
- They’ll look for hidden risks in the contract. This prevents too many risks from being your responsibility, such as if the AI makes errors.
- They’ll check how your data is used and stored.
- They’ll explain all intellectual property (IP) rights.
- They’ll confirm that all teams in the agreement are compliant with relevant laws and regulations.
- They’ll negotiate terms you wish to change, such as by pushing for higher caps to balance liability.
- They’ll get all agreed-on negotiations down in writing so that parties don’t dispute them later.
If you’d like a review of your AI software agreement, you can hire a lawyer from an online legal platform like ContractsCounsel, one of the largest online legal marketplaces where clients can hire qualified lawyers who have been vetted on the platform.
Here is how to request a review of your AI software agreement:
1. Go to the ContractsCounsel marketplace and post your project for free.
2. Receive multiple bids from lawyers directly on the platform who can assist you.
3. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
4. Hire a lawyer who is best suited to your requirements.
Why Should You Hire a Lawyer From ContractsCounsel?
ContractsCounsel offers a wide selection of vetted lawyers who can handle your legal tasks and provide support while offering cost-effective services. Some of the platform’s benefits include:
- Fixed-fee pricing. All costs are transparent and you can compare quotes to get the best deal.
- Quick and easy access to vetted professional lawyers. All lawyers on the platform have been screened.
- Stress-free searching. You can find a lawyer for your requirements from the comfort of your home.
- Data conveniently on the platform. Review the lawyers’ profiles before hiring one for your contract review or negotiation. The platform provides lots of data, such as regarding the lawyers’ expertise and experience.
See Real Software Agreement Projects
New Jersey VectorViewer Product License Agreement Drafting
- New Jersey
- 7 lawyer bids
- $500 - $1,500
California Termination of Perpetual Contract Review
- California
- 4 lawyer bids
- $550 - $750
Minnesota Review of Software License Agreement with Data Processing Agreement for compliance with GDPR and other Data Privacy compliance Review
- Minnesota
- 2 lawyer bids
- $750 - $995
Washington Sales contract for B2B web application and website development company Drafting
- Washington
- 13 lawyer bids
- $1 - $2,500
New York Disclaimers Needed For New App Focusing on DIY Mushroom Growing to Cover Company From Liability For Anyone Growing Illegal Mushrooms Drafting
- New York
- 8 lawyer bids
- $400 - $2,000
See all Software Agreement projects
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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Meet some of our AI Software Agreement Lawyers
Scott S.
I have over 25 years' experience representing individual and company clients, large and small, in transactions such as mergers and acquisitions, private offerings of securities, commercial loans and commercial endeavors (supply contracts, manufacturing agreements, joint ventures, intellectual property licenses, etc.). My particular specialty is in complex and novel drafting.
"Best attorney experience I've had. Scott S. knocked out my PPM, LPA, and subscription documents efficiently, responded fast, sweated every detail, and was completely fair on price. Exactly what you want and rarely find. Won't go anywhere else."
Dolan W.
You need a lawyer who's more than just knowledgeable – you need someone who's on your side. That's where I come in. I'll be there every step of the way, offering clear communication and proactive solutions. Whether you're starting a business or navigating a complex legal matter, I'll help you make informed decisions and achieve your goals. I also have drafted many templates to save you money. Just use this link - https://www.contractscounsel.com/client/lawyer-profile/3764#Templates Why Choose Me? I put you first I'm proactive I'm efficient I'm accessible
"Dolan was excellent — responsive, knowledgeable, and clearly understood the nuances of a franchise retail lease. He read our LOI carefully and made sure the lease reflected what we negotiated. Highly recommend and will be working with him again."
Karen S.
I'm an attorney available to help individuals and small businesses in Georgia with initial business set-up, required filings, tax strategies, etc. I'm also available to draft, review, and negotiate contracts of many types, both personal and professional. I can draft and file real estate quit claims as well. My legal and business experience and expertise includes small business startups, information technology, technology innovation, real estate transactions, taxes, intellectual property, electrical engineering, the business of video game development, business requirements definition, technology consulting, technology companies, liability waivers and reduction strategies, and the electric utility industry. I work part-time for a local law firm and part-time in my solo practice. I'm also an adjunct professor teaching business law. In addition, I'm part owner, legal counsel to, and a board member of a virtual reality video game development company. I am a member of the Georgia Bar Association. Please reach out if you need attorney, documentation or consulting help in any of those areas!
"Karen is amazing!! She is so approachable and gives great, practical guidance."
Jim B.
Since 2002, when I first received my law license and began practicing in criminal litigation, I have dedicated myself to providing competent and impassioned legal representation to my clients. Transitioning into business and intellectual property law and serving the Oregon community under the banner of INTELLEQUITY since 2016, I embarked on a mission to offer an unparalleled level of personalized legal guidance that empowers my clients through understanding, support, and legal mastery. As a seasoned attorney, I recognize that behind every case is a person with a distinct set of emotions, aspirations, and challenges. This is why my approach to legal services is not just about cases and statutes; it's about people and their lives. Whether it's navigating the intricacies of business law or safeguarding your intellectual property, I'm here to provide more than just professional counsel—I offer a compassionate, personalized approach to every case. This means keeping you well-informed at every step, empowering you with in-depth understanding, and steering you towards decisions that are legally sound and, more importantly, right for you.
"Great person to work with. He helped gain a better understanding of my own business."
September 3, 2024
Dennis S.
Dennis Sponer co-founded ScripNet, a uniquely designed Pharmacy Benefit Management (PBM) company in 1997. After serving as In-House Counsel for one of Las Vegas’ largest healthcare conglomerates, Dennis devised a payor based technological solution to the challenge of pharmaceutical payment and remittance. As one of the first workers’ compensation specific Pharmacy Benefit Managers in the industry, Dennis pushed the boundaries of what a PBM can do. ScripNet was a three-time winner of the Inc. 500 and was named to the Inc. 5000 numerous times thereafter. Clients of ScripNet included some of the largest carriers, governmental entities, and self-insured employers in the nation, including FedEx, Starbucks, Lockheed Martin, the Cities of Dallas, Atlanta and Philadelphia as well as the State of Texas and the State of Nevada. After fifteen years of exceptional growth and class leading industry recognition, ScripNet was acquired in 2012 by Optum Healthcare Solutions. After selling ScripNet, Dennis served as Executive Vice President for the acquiring company and was successful in integrating ScripNet into the larger entity. His latest venture, HSARx, was a consumer facing Pharmacy Benefit Manager focused on the owners of health savings accounts. He sold HSARx to SwiftScript in October of 2023. Dennis obtained his Juris Doctorate from Brigham Young University where he served as Note and Comment Editor of the Law Review. He then obtained his Master of Laws in Taxation (L.L.M.) from the University of San Diego. After selling ScripNet, Dennis returned to school to earn his TRIUM MBA, the program jointly administered by New York University's Stern School of Business, the London School of Economics and HEC Paris. Dennis is a member of the 1999 Leadership Las Vegas graduating class, was named by InBusiness Las Vegas to its annual Top 40 Under 40 list, is a graduate of MIT's prestigious Birthing of Giants program and holds a certificate in full stack development from MIT. Dennis is licensed as an attorney in California and Nevada and is a past President of the Las Vegas Chapter of the Entrepreneurs' Organization. He serves on the Southern Utah University School of Business National Advisory Board, the SUU Entrepreneur Leadership Council and the UNLV College of Liberal Arts Board. Through his consultancy, SRX Advisors, Dennis serves as an advisor and legal counsel to various startups, health care technology and artificial intelligence firms.
September 4, 2024
Jonathan W.
Jonathan Wright offers 30+ years of legal and business expertise to clients seeking a trusted advisor. His experience as a CEO and General Counsel for tech, healthcare, and biotech companies enables him to provide seasoned guidance on complex contracts, strategic agreements, and business transactions. Whether you're starting a company, navigating financings, or handling day-to-day corporate legal needs, Jonathan offers valuable insights and support.
September 10, 2024
Antonio P.
At Pishvai Law, Tony's attention to detail and deep community roots define his practice. A lifelong Fort Wayne native, Tony returned home after attending law school in Atlanta, Georgia, emphasizing his commitment to serving his community firsthand. As a solo practitioner, Tony offers a level of personalized service and dedication unmatched by larger firms. With a focus on tailored solutions and individualized attention, Tony ensures that each client receives the care they deserve. Whether you're facing a complex legal matter or seeking guidance, Tony is dedicated to providing the support and expertise you need to navigate your case with confidence.
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Browse Lawyers NowLawyer Reviews for AI Software Agreement Projects
Review JrSOCtriage License
"Muhammad did great work very quickly and was responsive to my time needs at his own expense. I am grateful."
Review Software License Agreement
"Terry was responsive and helped get the document to the first phase of negotiations. Document had a few typos but otherwise good."
On-premise software contract between Delaware incorporated SaaS company and government agency
"Chris helped us put together a quick SaaS contract. HE is very nice and professional."
Review and adapt a B2B contract regarding a software service that includes a product integration
"It was very good to work with Zachary"
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
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ContractsCounsel User
Terms of Service and Privacy Agreement for SaaS tool
Location: Pennsylvania
Turnaround: A week
Service: Drafting
Doc Type: Software Agreement
Number of Bids: 3
Bid Range: $600 - $3,250
ContractsCounsel User