As AI Risk Shifts to Customers, Contracts Matter More Than Ever
For years, business customers approached software contracting with a familiar expectation: if a vendor’s technology infringed someone else’s intellectual property rights, the vendor would defend the claim and cover resulting losses. As AI companies entered the enterprise market, those protections quickly became table stakes. That assumption is becoming increasingly unreliable. Litigation involving AI systems is accelerating. According to Prof. Edward Lee’s team at ChatGPTisEatingTheWorld.com, 111 copyright infringement cases involving AI have already been filed. Insurers are narrowing coverage. Vendors are narrowing indemnities. And businesses adopting AI tools are increasingly retaining risks that vendors once absorbed. When it comes to [...Read More...]