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ARTICLE · 29 JULY 2025

Contracts To Manage AI Risk: Part Two (Bermuda)

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In part one of this two-part series about artificial intelligence contracts, I discussed the ways that contracts can mitigate, if not avoid, many of the risks associated with the development and use...

BermudaTechnology
Duncan Card
Duncan Card
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In addition to the intellectual property infringement risks I have described, AI's current use is raising concerns about the veracity, reliability and completeness of AI's output.

Therefore, in addition to contracts including acceptance testing provisions, AI contracts should include covenants that address the quality of the AI's output, usually as service level specifications.

As well, many AI contracts now include "adult supervision" clauses that require ongoing human oversight, verification and quality assurances for AI solutions that AI promises.

The model AI contract published by the Digital Transformation Agency of the Australian Government, "Artificial Intelligence (AI) Model Clauses, v. 2.0", recommends more than a dozen human oversight provisions for consideration.

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