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ARTICLE · 21 NOVEMBER 2025

The Expanding Prevalence Of AI Clauses In Contracts

Taft, Stettinius & Hollister LLP
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Artificial Intelligence (AI) is rapidly transforming the business world, moving from a niche technology to an integral part of operations across nearly every industry.

United StatesTechnology
Jennifer L. Brown
Jennifer L. Brown
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Artificial Intelligence (AI) is rapidly transforming the business world, moving from a niche technology to an integral part of operations across nearly every industry. Whether you are acquiring a technology company or simply using AI services such as customer chatbots or data analysis programs, businesses are being exposed to a new class of legal risks. To address these unique challenges, businesses and investors are increasingly including AI-specific representations and warranties in contracts and agreements. These clauses are becoming a crucial method for effectively allocating and mitigating AI-related uncertainty.

Risks, Benefits, and Key Considerations

While the benefits of AI in terms of efficiency and pattern recognition are immense, the technology also presents novel and significant legal risks. The importance of AI technology in business means that acquirers are now seeking tailored assurances even when a target's AI use is not material to the

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