Key Questions to Consider When Selecting a Generative AI Tool Provider
As the market for generative artificial intelligence (AI) products grows rapidly, businesses looking to adopt these technologies face a delicate balance between technical capabilities, legal considerations, and financial implications. To ensure successful integration, companies must assess core intellectual property (IP) and commercial factors before using generative AI products or services. In addition to IP and commercial aspects, businesses should address data privacy, cybersecurity, employment, and international trade concerns. 1. Understanding the applicable terms To kickstart the evaluation process, companies must inquire about the terms that apply to the intended use of the generative AI tool. Some tools may be offered through different agreements, such as “enterprise” or “free” tiers, each with distinct legal terms governing its use. An enterprise agreement might provide more specific rights and protections, making it worth considering despite potentially higher costs. 2. Investigating the source of training data The training data‘s quality and origin significantly impact generative AI tools’ reliability. Some datasets are fully authorized, while others are scraped from the internet, raising questions about potential gaps and limitations. Customers need to ask detailed questions about the training data to assess the tool‘s reliability and the licensor’s credibility. 3. Securing protections through representations, warranties, or indemnities In light of ongoing class-action lawsuits
