PredictX has created an AI addendum template that is available for use by any entity when negotiating contracts with suppliers for AI-based solutions.
The AI-driven business travel data intelligence specialist is urging organisations to include an ‘AI addendum’ within supplier contracts to address specific legal and data privacy considerations when bringing AI services into their operations.
The addendum provides a ready-made document framework that can be attached to a privacy or master service agreement. It is designed to help organisations tailor the contract to meet their specific needs, while saving time and effort in drafting their own terms.
The addendum defines key terms, addresses intellectual property rights and sets expectations for warranties, data protection and compliance with laws such as General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA).
It also covers the responsibilities of both parties concerning the use of AI models, the handling of data, confidentiality and the limitations of the AI services, ensuring that both parties are clear on their obligations and the scope of the agreement.
Keesup Choe, CEO of PredictX, commented: “Companies are increasingly looking to incorporate AI services into their operations; however, we identified that many lack the expertise to draft comprehensive contracts that address the unique legal and security considerations of AI.”
“Given that there is an overall wariness among consumers, including business travellers, regarding use of AI and its impact on personal data security, it is important that companies not only work with reputable AI service providers, but that they also include specific terms in their service agreements,” he continued.
The AI Addendum resource is available to download, free of charge, from the PredictX website.
