---
title: "AI addendum: ownership of AI-generated output, training-data rights and AI-specific warranties (customer-side)"
url: "https://ailawframework.com/precedents/technology-media-and-telecommunications-it-contracts/ai-addendum"
type: "precedent"
site: "AI Law Framework"
id: "a24-ai-addendum"
area_id: "A24"
kind: "agreement"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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…

Canonical page: https://ailawframework.com/precedents/technology-media-and-telecommunications-it-contracts/ai-addendum  
Law stated as at: 2026-10-17

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

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.

## Key facts

- Kind: Agreement. A contract between two or more parties.
- Practice area: [Technology, Media & Telecommunications / IT Contracts](https://ailawframework.com/precedents/technology-media-and-telecommunications-it-contracts.md)
- Jurisdictions: Australia, European Union, United States
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 8 authorities it cites, for Australia, European Union and United States.

## 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.

## Authorities

- [Copyright Act 1968 (Cth) ss 35, 196(3), 197 (ownership; assignment in writing; future copyright)](https://www.legislation.gov.au/C1968A00063/latest/text)
- [Telstra Corporation Ltd v Phone Directories Company Pty Ltd 2010 FCAFC 149 (no copyright where works are not the product of human authorship)](https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/full/2010/2010fcafc0149)
- [Privacy Act 1988 (Cth) Sch 1, APPs 6, 8 and 11; s 16C](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Privacy and Other Legislation Amendment Act 2024 (Cth) Sch 1 (APP 1.7–1.9 automated decisions, commencing 10 December 2026)](https://www.legislation.gov.au/C2024A00128/asmade/text)
- [Regulation (EU) 2024/1689 (AI Act) arts 25, 26, 50 and 53](https://eur-lex.europa.eu/eli/reg/2024/1689/oj/eng)
- [Regulation (EU) 2026/1744 (Digital Omnibus on AI) (amended application dates in art 113 of the AI Act)](https://eur-lex.europa.eu/eli/reg/2026/1744/oj/eng)
- [Attorney-General, media release 26 October 2025 (no text and data mining exception)](https://ministers.ag.gov.au/media-centre/albanese-government-ensure-australia-prepared-future-copyright-challenges-emerging-ai-26-10-2025)
- [Thaler v Perlmutter, No. 23-5233 (D.C. Cir., 18 March 2025), 130 F.4th 1039; certiorari denied 2 March 2026](https://media.cadc.uscourts.gov/opinions/docs/2025/03/23-5233.pdf)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/technology-media-and-telecommunications-it-contracts/ai-addendum and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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