"We Signed What?!": The Hidden Hazards Of Vendor AI Terms And Conditions

As the integration of artificial intelligence (AI) into enterprise workflows continues, organizations are increasingly tasked with reviewing vendor agreements in respect of such applications. Unfortunately, organizations may be tempted to accept such agreements without fully considering their terms. Driving any such decision may be a variety of reasons, including:

• these agreements may be presented as a standard-form, "take it or leave it" agreement;
• they resemble conventional software-as-a-service agreements (sometimes with no reference to AI);
• their provisions may appear benign at first glance; or
• the associated licensing fees often fall below an organization's materiality threshold.