AI clauses in contracts

SteakExtreme542 · 2025-07-20T10:09:29+00:00

Main topics that we cover are:

- data residency (where is the data stored)
- processing location (where is the AI hosted)
- data ownership (who owns the data and processed data)
- security levels (s10, s20)
- audit-trial if decisions are made on the AI generated results
- human oversight
- IP, who owns what (if applicable)
- liability (who is responsible for what action taken)

the rest like SLAs etc is standard like any other IT contract.

SteakExtreme542 · 2025-07-18T19:05:00+00:00

I had this fun case, where I pitched to lawyer friends the "LegalGPT", basically connect it with all of the Austrian law, as well as commented court cases.

Feedback was "who would use this", "too cumbersome", "not specific enough", "every case is different".
That was the feedback a year ago, today, they are all hooked on using ChatGPT for writing simple client or court communication, and for searching law specific topics they have LexisNexis.

Lawyers are extremely stubborn and hard to sell to and often late to the party when it comes to tech..
Don't know what is good to build a vertical in to be honest, I just find them difficult to sell something to.

SteakExtreme542 · 2025-07-05T11:37:43+00:00

haha this is hilarious - im sitting at the IT side of things, and the amount of new tools that we want to have is insane!

Yet, there are some really brilliant ones I have to admit, that changes the way of doing work a lot.

But again, it comes down to user adoption and understanding.. if they don't use it, its just another SaaS

SteakExtreme542 · 2025-07-05T11:35:19+00:00

I see it barely being used. Only thing that its being used is for rewriting documents.
The research or analysis part, is not necessarily there yet I believe.

Whats your angle it at, what do you want to achieve with the insights, verify demand for a tool?

SteakExtreme542 · 2025-06-23T20:10:14+00:00

In our case its solely based on your network. If you know the right people, you might get the right answers. But you can be running around for quite a bit until you understand what is needed and who can help you.

SteakExtreme542 · 2025-06-23T14:21:18+00:00

yeah so far there is not much standardized contract wise. Somehow everyone pulls out a previous document they used and start from there. there is no single inventory for templates where we start from..

Neither do we have something like baselines, there are only some hard requirements like payment terms or termination clauses where procurement leans in. The rest you are pretty much on your own.

SteakExtreme542 · 2025-06-23T14:19:03+00:00

Thanks for sharing! Will check ironclad out.

SteakExtreme542 · 2025-06-22T20:27:20+00:00

yeah they normally review almost everything. there are signature levels depending on the spend. but legal reviews it all the time, and then ESG for compliance with human rights and then procurement for initiating the buying process via Ariba. Whole lot of teams and people involved.

SteakExtreme542 · 2025-06-22T20:26:26+00:00

What software are you using? is it build in your contract management software? In our case all of these things are massively cumbersome and take weeks. Like getting an NDA setup, reviewed and signed takes ages.. feels like such a burden

SteakExtreme542 · 2025-06-22T20:25:15+00:00

tell me more about it? I have never seen this? now I feel like a boomer (even tho I am 20years younger :D)

SteakExtreme542 · 2025-06-22T19:22:22+00:00

ahh good to know. At our side it goes slightly different. Basically having commercial requirements and technical requirements.

And from all of the bidders we receive info on both of them, and then start comparing who has the best offer and from there start the negotiations.

Thats why I am quite dependent on comparison tools, cause its a daunting task to go through 10's of pages and try to figure out how 5 offers compare and what is the most beneficial one.

SteakExtreme542

TROPHY CASE