Artificial Intelligence (“AI”) is no longer a future technology. It is now embedded in the software systems that organisations rely on every day. SaaS platforms, analytics engines, HR tools, financial decision systems, medical software and operational platforms increasingly rely on AI functionality in order to generate outputs, automate processes and support decision making.
However, many Master Services Agreements were drafted before artificial intelligence became commercially embedded in software products. As a result, these agreements often do not address how AI is being used within the services being provided. Organisations may therefore be deploying AI enabled systems without any contractual framework governing how that AI operates, how it is trained, or who carries the risk if something goes wrong.