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ARTICLE · 25 JUNE 2026

Contract Architecture — Core AI Clauses For Vendor Agreements

Ward and Smith, P.A
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AI vendor contracts require specialized provisions beyond standard SaaS agreements to address unique risks around data use, model training, and intellectual property. This article examines the essential contractual clauses that protect businesses when engaging AI vendors, from precise definitions of AI services and data categories to ownership rights, confidentiality protections, and AI-specific security safeguards.

United StatesTechnology
Mayukh Sircar
Mayukh Sircar

Ed. Note: This is the third article in our series, Smarter AI Vendor Contracts: Legal Strategies for Protecting Your Business. Read Part 1, Part 2, and Part 3.

With the risk landscape mapped and due diligence complete, the customer can turn to the contract itself.

AI engagements introduce concepts that standard technology contracts were not built to address. This article presents a structured approach to drafting agreements with AI vendors, focusing on the core clauses that distinguish AI vendor contracts from traditional SaaS agreements. Similarly to how a few years ago data processing terms became commonly associated with vendor agreements for software tools that process personal information, there is a rising trend of including AI-related terms with vendor agreements for AI tools. These provisions supplement, but do not replace, the standard vendor terms that customers already know well.

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