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What should we watch out for in a contract with an AI supplier?

A few headings decide this contract. The first is data: whether your inputs will be used to train the model, how long they are retained, which sub-processors are involved and in which count…

Updated · July 20261 min readCategory · Legal Tech
Short answer

A few headings decide this contract. The first is data: whether your inputs will be used to train the model, how long they are retained, which sub-processors are involved and in which country the processing happens — written down rather than assumed. Where personal data is processed, a data processor agreement under the Personal Data Protection Law (No. 669…

A few headings decide this contract. The first is data: whether your inputs will be used to train the model, how long they are retained, which sub-processors are involved and in which country the processing happens — written down rather than assumed. Where personal data is processed, a data processor agreement under the Personal Data Protection Law (No. 6698) has to be annexed, with GDPR terms where EU data is involved.

The second is the outputs: who may use the generated content, and how widely. The third is liability — the cap and the indemnity regime for errors, for hallucinations and for service interruption. Beyond those, look for audit rights, a service level agreement, security undertakings, and an undertaking to keep pace with changes in the law, the EU AI Act in particular. Standard SaaS wording is written for the supplier on every one of these points; we negotiate the balance back, and make sure the annexes are actually incorporated into the contract rather than merely referred to.

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