Before using a generative AI solution, you should ensure you read the terms and conditions that apply to its use. The contractual position around popular generative AI solutions is much more supplier friendly than what you would typically see in other tech contracts (e.g., more general SaaS terms). Liability and risk, particularly for generative AI solutions that have been mass released on a free of charge basis, is typically contractually passed on to the user with broad disclaimers.
Broad license rights back to the solution provider can also result in an unexpected loss of rights or unintentionally allowing the solution provider to reuse user data. The terms of use typically state that information provided in prompts or inputs is not considered confidential and that the system will use inputs for training in the future.
Whilst a number of popular generative AI solutions have been released on a free and open basis, the reality is for future business purposes the freedom of use of the output generated is likely to become subject to more restrictive license terms.
Key clauses to review:
- IP ownership and license rights
- Re-use of user data
- Security and protection of user data
- Restrictions on use of output