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ARTICLE · 03 JANUARY 2024

AI-Related Services Agreements And IP: Opportunity And Uncertainty For Service Providers

Generative artificial intelligence ("AI") made a major pop-culture splash earlier this year with the explosion of Chat-GPT. The capabilities of these AI tools to generate content such as text...

CanadaTechnology

Generative artificial intelligence ("AI") made a major pop-culture splash earlier this year with the explosion of Chat-GPT. The capabilities of these AI tools to generate content such as text, images, music, and code, is now widely recognized and many startup businesses are offering services powered by third-party AI tools. However, there is significant uncertainty surrounding intellectual property ("IP") in AI, generally and in particular, for service providers who offer AI-related services to their customers.

As is often the case with rapidly changing technology, the law is lagging significantly behind AI when it comes to IP ownership and rights over the outputs generated by AI tools. In Canada, current IP laws do not explicitly address the question of whether AI-generated outputs are eligible for IP protection, and if so, who owns them. The existing legal framework is based on the assumption that there is a human author or inventor behind every IP-protected work

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