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ARTICLE · 04 OCTOBER 2024

"Sourcing The Code": Issues In Licensing AI

BTG Advaya
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Leveraging artificial intelligence, or AI, to streamline operations and enhance productivity is emerging as a good use case of machine learning.

IndiaTechnology
Kalindhi Bhatia
Kalindhi Bhatia
Prashant Daga
Prashant Daga
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Leveraging artificial intelligence, or AI, to streamline operations and enhance productivity is emerging as a good use case of machine learning. Various service providers and IT vendors are helping businesses put in place AI systems customized for their operations. In doing so, vendors and service providers either support the client business to develop their in-house AI systems, or license their tools to them catering to the businesses' requirements.

Procuring AI enabled software as a service/product presents certain legal issues that need to be addressed contractually. Garden variety issues for technology licensing will apply for AI technologies too (such as rights to underlying IP, agreed service levels, limited uses, etc.), and there are some additional nuances to be considered at the contract preparation and negotiation stage.

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