AI Contract Update

Many existing commercial contracts were drafted before AI was a meaningful part of the supplier's or the customer's operations, and they do not address it. Updating contracts to address AI is a discrete piece of work that affects IP in AI inputs and outputs; confidentiality (where confidential information is processed by AI tools); liability for AI errors; and obligations regarding training data and model use.

Where contracts need to address AI specifically

The update is most often relevant to professional services contracts, technology supply contracts, and contracts in which the supplier uses AI to deliver the service. The questions of who owns the output, who is responsible for it, and what happens when the AI gets it wrong are not adequately answered by general contract drafting from a few years ago.

Suitable for businesses that need their existing contracts to address AI use specifically, whether by them or by their counterparties.

This service updates up to three contracts to reflect AI use, including IP, confidentiality, and liability provisions.

Example: a typical scope and fixed fee

For up to three commercial contracts requiring AI-specific updates, the typical scope looks like this.

What's included

• A consultation to understand how AI is being used and the relevant contracts
• Drafting of AI-related provisions for up to three contracts, covering IP in AI outputs, AI training restrictions, confidentiality, and liability
• One round of revisions based on your feedback
• Final versions ready to use

What's outside this scope

• Drafting new contracts from scratch (see Contract Drafting)
• Negotiation with the other party beyond the scope described above
• EU AI Act compliance assessment (see EU AI Act Readiness Triage)
• Tax advice

Fixed fee: £850, no VAT.

How I will approach your matter

Once you have instructed me, I will arrange a consultation to understand how AI is being used and the relevant contracts before drafting AI-specific provisions tailored to each contract.