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Acceptable Use Policies for Foundation Models: Enforcement, Transparency and EU AI Act Implications for Providers and Users

Published on: 15 November 2024

Published by a LexisNexis TMT expert

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Article summary

The adaptability of general-purpose AI makes stringent AUPs essential to curb misuse. Without these rules, providers and users may unwittingly breach legal and ethical norms—particularly the EU AI Act—exposing themselves to substantial liabilities, regulatory duties and penalties.

Defining AUPs

Acceptable use policies are contractual terms that set out allowed and forbidden uses of technology. In the realm of foundation models, they delineate what users may and may not do with AI systems, aiming to prevent harmful or unlawful applications. By baking these limits into terms of service or model licences, developers impose binding obligations on users, thereby extending their control over how their technologies are used.

The necessity of AUPs for AI systems

The value of AUPs is highlighted by findings from Stanford University’s Centre for Research on Foundation Models. Research by Kevin Klyman observes that foundation model developers are increasingly proactive in adopting AUPs to prevent unacceptable uses of their systems. Even so, there is marked variation in how such policies are put into practice and enforced. The study indicates that, among ten leading developers, only three disclose their enforcement mechanisms, and transparency beyond that is rarer still...

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