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ARTICLE · 03 NOVEMBER 2023

As Generative AI Tools Proliferate, Terms And Conditions Are Becoming A Key Differentiator

Proskauer Rose LLP
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In the first half of 2023, a deluge of new generative artificial intelligence ("GAI") tools hit the market, with companies ranging from startups to tech giants rolling out new products.

United StatesTechnology
Peter Cramer
Peter Cramer
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In the first half of 2023, a deluge of new generative artificial intelligence ("GAI") tools hit the market, with companies ranging from startups to tech giants rolling out new products. In the large language model space alone, we have seen OpenAI's GPT-4, Meta's LLaMA, Anthropic's Claude 2, Microsoft's Bing AI, and others.

A proliferation of tools has meant a proliferation of terms and conditions. Many popular tools have both a free version and a paid version, which each subject to different terms, and several providers also have 'enterprise' grade tools available to the largest customers. For businesses looking to trial GAI, the number of options can be daunting.

This article sets out three key items to check when evaluating a GAI tool's terms and conditions. Although determining which tool is right for a particular business is a complex question that requires an analysis of terms and conditions in their entirety – not to mention nonlegal considerations like

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