UK: The Society for Computers and Law (SCL) has launched a set of free contractual clauses for transactions involving artificial intelligence (AI).

Legal Futures reports

The Society for Computers and Law (SCL) has launched a set of free contractual clauses for transactions involving artificial intelligence (AI).

Minesh Tanna, chair of the SCL’s AI group, said the impact of AI on contracts was “not straightforward, particularly at this early relatively early stage in AI adoption”.

The clauses, drafted by members of the SCL’s AI group over several months, are intended to provide guidance on the types of issues that should be addressed in contracts for transactions involving AI, and are not to be relied on as legal advice.

The 60 pages of clauses cover areas such as primary obligations, intellectual property/licensing and contractual protection, from the point of view of both customer and supplier.

They also include drafting notes to help explain the rationale for the positions taken, the drafting itself and other points to consider, along with suggested contractual definitions for key AI concepts.

Mr Tanna, partner and global AI lead at City firm Simmons & Simmons, said the clauses covered procurement of a ready-made AI solution or a bespoke arrangement where the customer helped the supplier develop it.

“Due to the way in which AI models are created, where the customer has a say, the contractual approach varies.

“If a contract is signed at the start of the development process, the customer should be able to be more prescriptive about training and testing. If the product is already developed, the customer will have to rely on promises about how it has been trained and tested.”

Mr Tanna said the clauses should be treated as “high-level guidance” for AI contracts,

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