AI, Data Privacy, and Contract Law: What You Need to Know

Artificial Intelligence (AI) has become such a powerful tool in our daily lives. Generative AI is

designed to train itself based on the input that users put into the system, creating concerns about

this usage of data. With the increase of AI, it is important that individuals and businesses are

able to regulate its use to avoid disastrous missteps or accidentally leaking confidential

information. In particular, there has been increased use of AI-related provisions in contract

terms, especially when it comes to data privacy and data handling.

When drafting or reading a contract, it is important to take note of the AI-related provisions,

particularly if you have any concerns surrounding data usage. AI should never be used to draft

an agreement or advise on contract-related legal issues, but its use should be addressed in all

agreements from now on. This can include provisions regulating the use of data and data used

for training, acknowledging legislation and best practices around AI governance, and clarifying

potential data ownership issues.

If you decide to use AI, some general best practices include never giving AI any confidential

information, check any AI output for accuracy and bias, and ensure the AI platform you use has

strong privacy measures in place.