AI Standard Clauses by Bonterms
This document provides standard clauses for incorporating Artificial Intelligence (AI) features into an existing cloud service agreement. It addresses critical aspects such as the use of customer data for AI training, intellectual property rights over AI inputs and outputs, and liability for potential infringement by AI-generated content. The template offers various options for each clause, allowing for customization based on specific business needs.
Bonterms AI Standard Clauses (Version 1.0)
These Bonterms AI Standard Clauses (Version 1.0) are designed to provide a model for terms governing use by a customer of AI Features provided as part of a provider’s larger Cloud Service.
These AI Standard Clauses utilize defined terms and reference provisions from the Bonterms Cloud Terms (Version 1.0), but may be adapted to work with other agreements.
AI Terms Addendum
Under Agreement: [master agreement name]
The following terms ("AI Terms") are hereby added to and become part of the Agreement as Additional Terms. Capitalized terms not defined in these AI Terms have the meanings given in the Agreement. The Agreement applies to the AI Features as part of the Cloud Service with the following modifications.
Use of AI Features. Customer may submit Customer Data (including in the form of prompts or queries) to the AI Features ("Inputs") and receive outputs from the AI Features ("Outputs").
"AI Features" means (select one):
Large language models (LLMs) or other machine learning or artificial intelligence features of the Cloud Service.
Other: [describe custom ai feature]
Training (select one):
Training on Inputs/Outputs prohibited
Provider may not use Inputs or Outputs to train or otherwise improve AI Features.
Training permitted solely for Customer's benefit
Provider may not use Inputs or Outputs to train or otherwise improve AI Features, except solely for the benefit of Customer.
Training permitted if Inputs/Outputs are de-identified and aggregated
Provider may use Inputs and Outputs to train or otherwise improve the AI Features, but only if such Inputs and Outputs have been (a) de-identified so that they do not identify Customer, its Users or any other person and (b) aggregated with data across other customers. For these purposes (and without limiting Customer’s other obligations with respect to Customer Data generally), such data is provided by Customer to Provider strictly "AS IS".
Other: [custom training]
Intellectual Property (select one):
A. Inputs:
Customer owns Inputs as Customer Data
Inputs are deemed to be Customer Data, subject to these AI Terms.
Customer owns Inputs – alternative formulation
Except for Provider’s express rights in the Agreement, as between the parties, Customer retains all intellectual property and other rights in Customer’s Inputs.
Other: [custom input ip ownership].
B. Outputs (select one):
Customer owns Outputs as Customer Data
Outputs are deemed to be Customer Data, subject to these AI Terms.
Customer granted right to use Outputs
Customer is authorized to use Outputs subject to the Agreement, including the AUP and these AI Terms.
Customer granted right to use Outputs – alternative formulation
Subject to the Agreement (including the AUP and these AI Terms), Provider hereby grants to Customer a non-exclusive, worldwide, perpetual right and license to reproduce, distribute, publicly display, publicly perform and prepare derivative works of Outputs.
Other: [describe custom output ip ownership].
Similar Outputs. Customer acknowledges that Outputs provided to Customer may be similar or identical to Outputs independently provided by Provider to others.
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