Whether form or template agreements are for a company’s own services or are used for the procurement of goods and services, leveraging forms can be a useful tool to maintain consistent terms and conditions. With the advancement and growth within the artificial intelligence (AI) market, including new and enhanced products and services that incorporate AI, now is a good time to revisit and refresh template agreements.
For those vendors of goods with a standard set of contracts that have started or are considering expanding into the AI market or leveraging AI in company services, or those consumer of goods and services that prefer to use their own form template agreements, reviewing, updating, and refreshing standard contract documents may be well worth the undertaking.
It is possible that standard template agreements may not be best suited to address terms and conditions specific to AI, including permitted or restricted use, ownership of data, input and outputs, and any necessary added definitions, indemnities, or warranties. Although there may be an option to build these terms into a statement of work or amendment for an existing agreement, including them in a template for future contract needs could possibly create a more efficient contracting process.
Refreshing a template does not always mean starting from scratch and there are many ways to update template agreements to include specific terms with respect to AI. Depending on the use of the agreement, supplementing or amending the existing language in the agreement or referring to and adding a new annex, module, schedule, or supplement may be the best fit.
If your templates have not been revisited or refreshed in a while or you have questions about adding any specific terms to your templates, including any related to AI, reach out to the authors of this blog post or your Morgan Lewis contact.