Artificial Intelligence

Artificial Intelligence


Artificial Intelligence and Contracting Issues: Navigating Business and Legal Perspectives: Artificial Intelligence (AI) has undeniably revolutionized numerous aspects of our lives, including the way businesses operate. However, the emergence of AI has also given rise to unique contracting issues that require careful consideration from both a business and legal perspective. VBTL recognizes the complexities associated with AI contracting and offers tailored services to address these challenges.

One of the primary concerns in AI contracting revolves around generative AI and other machine learning systems. These technologies possess the ability to generate outputs autonomously, raising important questions about the ownership of intellectual property (IP) rights in these outputs. Determining who holds the rights to these creations can be complex, as it often involves the interplay of algorithmic processes and human input. Our expertise lies in assisting businesses in negotiating contracts that clearly define IP ownership and address the rights and responsibilities related to generative AI systems.

Another critical issue in AI contracting is the potential risks associated with trade secrets. The prompts and training data used to train AI models may originate from proprietary or confidential sources, which can expose businesses to trade secret risks. Our team excels in advising on the inclusion of robust confidentiality and data protection provisions to mitigate such risks, helping clients safeguard their valuable information while harnessing the power of AI.


Moreover, breaches of nondisclosure agreements (NDAs) can have severe consequences when it comes to AI. In the context of AI contracting, NDAs play a crucial role in safeguarding sensitive information shared between parties. Our services include drafting and negotiating comprehensive NDAs that protect the interests of our clients and enable them to collaborate confidently in AI-driven projects.

As AI systems become increasingly integrated with various aspects of society, concerns regarding privacy, defamation, and discrimination have become more pronounced. AI applications must adhere to privacy regulations, and businesses must be vigilant in understanding and complying with these requirements. Our team provides guidance on the legal implications of deploying AI systems, ensuring compliance with privacy laws and minimizing the risk of legal liabilities related to privacy, defamation, and discrimination claims.


While our focus encompasses generative AI, we also provide services related to non-generative systems, commonly referred to as "extractive AI." We understand that not all AI applications involve autonomously generated content. Our expertise extends to drafting standard terms of service (ToS) and user agreements tailored for extractive AI systems, addressing key legal considerations while facilitating seamless integration of these technologies into business operations.


For clients seeking to navigate the multifaceted landscape of AI, our comprehensive services extend beyond mere contractual arrangements. We offer advice on related IP concerns, negotiation of contracts with suppliers and strategic allies, and assist in structuring business relationships that maximize the benefits derived from AI technologies.


At VBTL, we are committed to providing cutting-edge legal solutions to businesses grappling with the complexities of AI contracting. With our tailored services, clients can navigate the evolving legal landscape surrounding AI, mitigate potential risks, and unleash the full potential of these transformative technologies.

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