---
title: "Review a SaaS agreement for generative-AI and training-data terms"
url: "https://ailawframework.com/practice/technology-media-and-telecommunications-it-contracts/review-a-saas-agreement-for-ai-specific-clauses/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A24-B7-1-US"
practice_area: "Technology, Media & Telecommunications / IT Contracts"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Review a SaaS agreement for generative-AI and training-data terms

> Extract clauses on training use, retention, output ownership, subprocessors and the customer’s right to turn AI features off. Mark each against the playbook position the lawyer supplies.

Canonical page: https://ailawframework.com/practice/technology-media-and-telecommunications-it-contracts/review-a-saas-agreement-for-ai-specific-clauses/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Technology, Media & Telecommunications / IT Contracts](https://ailawframework.com/practice/technology-media-and-telecommunications-it-contracts.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Extract clauses on training use, retention, output ownership, subprocessors and the customer’s right to turn AI features off. Mark each against the playbook position the lawyer supplies. |
| What the lawyer must review | Formal Opinion 512 requires the lawyer to understand a tool’s confidentiality, retention and training use before client information goes in, and to review the output. Rule 1.6 prohibits revealing information relating to the representation without informed consent, implied authority, or a paragraph (b) exception. If the customer is a California business and the vendor processes personal information for a business purpose, Cal. Civ. Code § 1798.140(ag) requires a written contract that prohibits selling or sharing, use outside the stated business purposes, use outside the direct business relationship, and combining that information except as the section allows. The lawyer decides which gaps are deal-breakers. |
| Written for | United States |
| Applies to | [Review a SaaS agreement for AI-specific clauses](https://ailawframework.com/practice/technology-media-and-telecommunications-it-contracts/review-a-saas-agreement-for-ai-specific-clauses.md) |

## Checking plan

- What the AI does: Extract clauses on training use, retention, output ownership, subprocessors and the customer’s right to turn AI features off. Mark each against the playbook position the lawyer supplies.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Section 1798.140 is California law. Other state privacy statutes use different contract tests. There is no federal GDPR-style transfer regime to apply by default.
- A vendor’s marketing page is not the contract. Read the order form and the data-processing terms together.

## Sources

- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.6, Confidentiality of Information](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_6_confidentiality_of_information/) (checked 2026-10-22)
- [Cal. Civ. Code § 1798.140, including the service-provider definition](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV&sectionNum=1798.140.) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [SaaS subscription and negative-option checklist](https://ailawframework.com/precedents/technology-media-and-telecommunications-it-contracts/us-saas-negative-option-checklist.md) | Checklist | Yellow | A review checklist for an internet subscription. 15 USC § 8403 applies only to a charge through a negative option feature as the Telemarketing Sales Rule defines it.… |
| [SaaS subscription agreement](https://ailawframework.com/precedents/technology-media-and-telecommunications-it-contracts/us-saas-subscription.md) | Agreement | Yellow | Short subscription for hosted software. It gives a right to access during the term, keeps customer data with the customer, and points personal information to the CCPA addendum.… |
| [AI vendor terms review checklist](https://ailawframework.com/precedents/technology-media-and-telecommunications-it-contracts/us-ai-vendor-terms-checklist.md) | Checklist | Yellow | Questions for a contract with a vendor that provides or hosts an AI system. The NIST AI Risk Management Framework is voluntary.… |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*