Agreement · Technology, Media & Telecommunications / IT Contracts
AI addendum: ownership of AI-generated output, training-data rights and AI-specific warranties (customer-side)
Customer-side addendum for any technology contract with AI features: who owns outputs, a no-training default for customer data with opt-in, retention and deletion, model-provider flow-downs, IP warranties and indemnities, human oversight, transparency, model changes and AI incidents.
- Kind
- Agreement. A contract between two or more parties.
- Where it applies
- Australia, European Union, United States
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked on 17 October 2026 against the 8 authorities it cites, for Australia, European Union and United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a client buys a SaaS, platform or services contract that includes generative AI or machine learning features, or when a vendor proposes to add AI features to an existing contract. Supplier-side fallbacks are marked as alternatives. For a short neutral form, consider the Bonterms or Common Paper standards instead.
How AI may be used
AI may draft first-pass clauses mapped to the vendor's technical description and compare vendor terms against this addendum. A lawyer settles ownership, training rights, warranties and indemnities, and checks the technical facts with the client.
AI may
- Extract from the vendor's documentation the models, hosting locations, retention periods and sub-processors to complete Annexure A.
- Compare the vendor's AI terms with this addendum and list each gap, with clause references.
- Draft plain-English explanations of the training and ownership options for the client.
AI must not
- Must not assume technical facts (no training, zero retention, data location) that the vendor has not confirmed in writing.
- Must not upload the vendor's confidential security documents or the client's data to a tool that trains on inputs.
- Must not advise whether copyright subsists in particular outputs; that needs the lawyer's analysis of the human contribution.
The lawyer checks
- Annexure A matches the vendor's written confirmations and the actual configuration.
- The training and retention position is consistent with the client's privacy notices, APP 6 and APP 8.
- Any EU AI Act obligations are assessed against the dates in art 113 as amended by Regulation (EU) 2026/1744.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Technology, Media & Telecommunications / IT Contracts
- SaaS / cloud services agreement (Australian law, business customers)
- AI standard clauses for AI features in cloud services (Bonterms AI Standard Clauses v1.0, CC0)
- Australian Government AI model clauses (DTA, BuyICT ClauseBank): use guide for agencies and suppliers
- Data protection, security and breach-notification schedule (processor terms)
- Software development agreement with AI coding-assistant and open-source terms
- Checklist: reviewing a vendor SaaS or technology contract (customer side, including AI terms)
All precedents for Technology, Media & Telecommunications / IT Contracts · Tasks and AI use in this area