Contract Kit for AI Providers

Companies that integrate third-party AI models or systems into their products or processes have, since the entry into force of Regulation (EU) 2024/1689, been operating within a contractual framework with specific requirements that the standard contracts of major technology providers do not always meet. The regulation imposes obligations on the party responsible for deployment that can only be fulfilled if the model provider supplies certain information and guarantees specific levels of transparency, documentation, and traceability. If these commitments are not included in the contract, the risk falls by default on the party deploying the system.

At Letslaw, we develop contract kits tailored to the realities of companies that contract with AI providers, whether for general-purpose AI (GPAI) models or more specialized systems. The kit includes:

• Review and negotiation of contracts with AI providers: analysis of the provider’s terms and proposal of amendments to ensure compliance with the obligations the Regulation imposes on the party deploying the system.
• Mandatory clauses under the Regulation: drafting of the specific provisions that must be included in the contract with the AI provider, including the transfer of technical information necessary to fulfill the obligations under the Regulation.
• Responsibilities regarding training data: analysis and documentation of each party’s responsibilities regarding the data used to train or fine-tune the model, with special attention to personal data and intellectual property rights.
• Audit and accountability mechanisms: incorporation of audit rights, incident reporting obligations, and complaint resolution mechanisms with respect to the provider.
• Coordination with the GDPR: Incorporation of data processor clauses into the contract when the system processes personal data, ensuring that the same document covers both the requirements of the AI Regulation and those of the GDPR.
• The kit can be provided as an internal reference template, tailored to the client’s procurement policy, or applied directly in specific negotiations with a particular provider.

Our team has experience both in reviewing contracts with the leading AI model providers on the market and in drafting customized contractual documentation. If you need guidance on how to structure your relationship with your AI provider, we are available for an initial consultation.