Source: Eversheds Sutherland

Eversheds Sutherland examines the complexities of drafting and negotiating contracts related to artificial intelligence development and deployment. As AI becomes integral to business operations, companies face unique legal challenges when creating agreements for AI services, products, or partnerships.

The article outlines critical elements to include in AI contracts, such as clear definitions of intellectual property rights, data privacy obligations, liability limitations, and compliance with AI-related regulations. It also emphasizes the importance of addressing issues like algorithmic transparency, performance standards, and ethical use policies.

Legal experts stress that companies should adopt robust risk mitigation strategies when contracting for AI, including clear clauses on responsibility for AI errors, data breaches, or regulatory violations. The growing use of AI in business highlights the need for well-structured contracts that balance innovation with legal safeguards.