Clause · Technology, Media & Telecommunications / IT Contracts

AI standard clauses for AI features in cloud services (Bonterms AI Standard Clauses v1.0, CC0)

The Bonterms AI Standard Clauses v1.0 reproduced unchanged under CC0: a short, option-based AI terms addendum covering training on inputs and outputs, ownership of inputs and outputs, infringement, disclaimers, third-party model providers and use restrictions.

Kind: Clause. Wording to drop into a longer document.
Where it applies: Australia, 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 against the cited sources on 17 October 2026.
Version: 1
Source: Reproduced from an official source. Licence: CC0 1.0 (Bonterms AI Standard Clauses v1.0). No attribution required; attribution given as good practice. Bonterms and its logo are trade marks of Bonterms, Inc.; no endorsement implied.

Where this comes from

Reproduced from bonterms.com under CC0 1.0 (Bonterms AI Standard Clauses v1.0). No attribution required; attribution given as good practice. Bonterms and its logo are trade marks of Bonterms, Inc.; no endorsement implied.. Last checked on 2026-10-17.

When to use it

Use as a neutral starting point when a cloud supplier adds AI features and both sides want a short addendum. Bonterms now marks v1.0 as an older version, so check whether the parties would rather use its Standard AI Addendum v2.0. It is US-drafted and cross-refers to the Bonterms Cloud Terms, so localise it before using it under Australian law; use the customer-side AI addendum where the customer needs stronger protection.

How AI may be used

AI may help select options and map the clauses to the main agreement's defined terms. A lawyer chooses the training, ownership and infringement options and settles the Australian localisation.

AI may

Map each Bonterms defined term and cross-reference (for example, Section 9.1 and Section 22.10 of the Bonterms Cloud Terms) to the equivalent clause in the client's main agreement.
Compare the selected options with the client's AI playbook and list gaps.
Produce a clean version with the chosen options for the lawyer to check.

AI must not

Must not alter the reproduced text and still describe it as the Bonterms text; mark any changes as changes.
Must not select the training or infringement options; those are commercial and legal decisions.
Must not upload the counterparty's draft to a tool that trains on inputs.

The lawyer checks

Cross-references and defined terms work with the main agreement.
The disclaimer in clause 6 does not purport to exclude non-excludable ACL guarantees, and the terms are not unfair in a standard form small business contract.
The training option chosen is consistent with the customer's privacy notices and APP 6.

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Official form

Open the official form. Always use the current version from the issuer. Licence: CC0 1.0 (Bonterms AI Standard Clauses v1.0). No attribution required; attribution given as good practice. Bonterms and its logo are trade marks of Bonterms, Inc.; no endorsement implied..

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.

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