Powered by Lexis+®
Jurisdiction(s):
United Kingdom

Drafting and Negotiating AI Contracts: Futureproofing via Risk Assessments, State‑of‑the‑Art Obligations, Regulatory Roadmaps, Change Control, Cost‑Sharing, Data Portability and IP Ownership

Published on: 08 April 2025

Published by a LexisNexis TMT expert
Legal News
imgtext
Article summary

Why do AI contracts differ from typical technology agreements and demand more flexibility?

There are several ways in which AI contracts diverge from conventional technology agreements and therefore call for greater flexibility:

  • New risks and applications. AI represents the latest shift in how technology services are delivered. Offerings vary widely by purpose, training and development, deployment, and territorial scope. As with open source code or agile development methods, AI pushes lawyers to craft bespoke warranties, procedures, and controls to address unfamiliar risks (eg data poisoning, biased outputs).
  • Rapid change. AI is evolving and rolling out at speed, so obligations can become stale unexpectedly. At the same time, lawmakers are scrambling to tackle new AI concerns, producing fresh or amended rules (such as the EU AI Act) that can reset compliance expectations within months.
  • Third-party data concerns. AI solutions frequently depend on large volumes of third-party or user-generated data, raising additional issues around rights infringement, handling of sensitive or confidential material, and the possibility of unlawful outputs. Contracts must clearly set out each party’s duties for sourcing, storage, and permitted use of data.
  • Use in different services too...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Popular documents

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Read More Right Arrow

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Read More Right Arrow

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Read More Right Arrow

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...

Read More Right Arrow