SaaS agreements in the context of AI

I'm Oleksandra, an experienced IT/Tech Global Commercial Lawyer with over 18 years of international expertise,? and I’m sharing my legal practice knowledges and insights here.

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?? When reviewing Your SaaS agreements in the context of AI, there are several key points to consider for Your business:

1. Service Level Agreements (SLAs): Understand the expected uptime, response times, and performance metrics. Ensure the provider offers clear commitments on service availability and support.
2. Data Security and Privacy: Review how the provider handles data protection, including compliance with regulations like GDPR or CCPA. Examine their data encryption practices, access controls, and incident response protocols.
3. Intellectual Property Rights: Clarify ownership of data generated or processed by the AI. Understand who retains rights to any AI models or algorithms developed during the contract.
4. Data Usage, Privacy and Ownership: Determine who owns the data stored in the SaaS platform, and how that data can be used by the provider. Look for clauses regarding data privacy, data retention, processing, and deletion upon termination.
5. Integration Capabilities: Evaluate how well the SaaS can integrate with existing systems and tools. Ensure that there are clear protocols for API access or data import/export.
6. Liability and Indemnification: Understand the limitations of liability and indemnification clauses, especially in cases of data breaches or misuse of AI technology. Assess the risk exposure.
7. Termination Rights: Review conditions under which the agreement can be terminated and the implications for data retrieval and access after termination.
8. Change in Ownership or Control: Consider what happens if the provider is acquired or changes ownership. Ensure that your rights and data remain protected in such cases.
9. Customization and Configuration: If the AI features can be customized, clarify how these changes affect pricing and service levels.
10. Continuous Improvement and Updates: Review how frequently the software and its AI capabilities are updated. Understand how and when new features or improvements will be rolled out.
11. Performance Metrics and Reporting: Examine how performance is measured and reported. Are there specific benchmarks for the AI’s effectiveness and accuracy.
12. Ethical Use of AI: Ensure that there are provisions regarding the ethical use of AI, including adherence to ethical guidelines and avoiding bias in AI algorithms.

By addressing these key points, You can ensure that Your SaaS agreement aligns with Your organization's needs, especially when leveraging AI technology.

If you’re interested to know more, don’t hesitate to get in touch!