Drafting GenAI Contract Terms

Generative artificial intelligence (GenAI) technologies are transforming industries by enabling machines to create content ranging from text and images to music and videos. As businesses increasingly adopt these technologies, it is crucial to draft contract clauses that address the unique aspects of GenAI. This article explores key issues in GenAI contracts and provides sample provisions to help ensure comprehensive and clear agreements.

• How to define GenAI.

Defining what constitutes GenAI within the contract is the building block on which the remainder of a GenAI contract provision is built. This can include specifying GenAI functionalities, capabilities, and limitations. Depending on the situation, a broad or narrow definition may be appropriate- but if a broad definition (such as just stating "generative artificial intelligence") is used, be sure you understand the breadth of the definition and the implication of that broad definition in interpreting the