As artificial intelligence (AI) becomes increasingly integrated into day-to-day business operations, it is not only transforming workflows but also the legal landscape, especially when it comes to contracts. Master SaaS agreements, MSAs, Terms of Use, DPA and EULAs all need AI provisions. Whether you have an AI SaaS product, are using AI in your services, or you’re a business bringing on an AI vendor, you need a technology attorney specialized in AI to review your service agreement.
Can’t regular contract attorneys handle AI in contracts? Tech law requires deep experience of how to tackle the unique complexities of AI contracts. From data privacy concerns, to ethical compliance and IP ownership, the types of liability there is when AI is part of a service. Artificial intelligence lawyers know how to handle challenges traditional SaaS agreements simply don’t cover.
Why Specialized Legal Expertise is Critical for AI Contracts
When a business utilizes AI, they are not only held to certain legal obligations outlined in the AI system’s contract. They also need to follow current and future laws surrounding AI. That’s one reason an artificial intelligence lawyer is crucial for any business that uses AI. Here are some specific ways that AI-related contracts may differ from traditional contracts, including SaaS contracts:
Intellectual Property Issues: There have been many public legal concerns and debates surrounding ownership of the input and output of AI generative systems such as ChatGPT. AI laws are still being developed, which means that AI contracts are constantly changing, and with them, your legal obligations.
Data Usage and Privacy: Any time a business uses AI, it’s very likely that the system that they’re using is taking note of their inputs and using that information to further advance its technology. It’s also likely that this data is being sold to third-party sites. If your business uses AI, and the inputs you’re using contain sensitive data, there is a risk that this data may become public.
Liability and Risk Allocation: AI systems are far from perfect, and there are plenty of scenarios where they plagiarize or produce copyrighted, harmful material. Who’s liable if this happens? The human or business who created the input or the team who created the AI system? Answering this question requires an AI lawyer who’s familiar with the most current laws surrounding AI liability.
The Role of an AI Lawyer in Contract Negotiations
Hiring a lawyer who’s familiar with AI legal obligations is essential not just for complying with AI contracts and laws but ensuring your business is protected from inappropriate, malicious or unethical AI use by clients, employees, or other businesses. An AI lawyer ensures your contracts are carefully crafted to minimize risks and provide maximum protection at every stage.
AI SaaS Agreement Drafting
For contracts that need to be governed by AI policies and use of AI provisions, an AI attorney can help you do so in a way that meets your company’s goals while mitigating potential risks. They will consider your business’s vulnerabilities in terms of AI use and what potential legal issues may come up in relationships between clients, vendors or employees. They will also consider your data and security, and how to safeguard your business’s wellbeing against privacy breaches. As changing regulations are always a concern with AI use, an AI lawyer can also draft future-proof contracts to anticipate evolving laws.
Contract Negotiation
AI lawyers are not only knowledgeable in the capabilities and advancement of AI policy but they are also skilled negotiators. When you receive an AI-related contract that negatively impacts your business, a lawyer can negotiate with the authors of the contract to ensure your data safety needs are met. The same goes for contracts you offer—if your terms are not agreed to in the first draft, a lawyer can negotiate with the opposing party to make sure that they’re met in the second draft.
Contracts Legal Review
As concerns surrounding AI compliance and data security continue to grow, an Artificial Intelligence lawyer can provide a thorough review to address potential issues in the terms of existing or new contracts. If updates or adjustments are necessary, a lawyer can assist with revising contracts to safeguard your business against breaches, lawsuits, or property loss.
Example of How Our AI Lawyers Help Clients Succeed
A fast-growing tech startup was negotiating an $8 million strategic AI licensing deal for an AI-powered SaaS platform with a large enterprise. Lacking deep expertise in AI law, the startup risked relinquishing data ownership and taking on hidden liabilities—some without limits. Seeking expert guidance from an AI lawyer, they turned to Gouchev Law, which stepped in to ensure the contract clearly defined ownership of training data, usage rights for AI-generated outputs, and liability for AI errors.
On the other side, the enterprise’s legal team also relied on AI attorneys to ensure compliance with evolving regulations. With the AI lawyer’s guidance, the deal moved forward smoothly and faster than expected, resulting in a fair agreement. The business leaders were able to step back at the right time, leaving the legal negotiations to tech attorneys—starting the relationship on the right foot.
Gouchev Law: Your New York Artificial Intelligence Lawyers with a global reach
AI has exciting potential in the world of business, but it also comes with a host of unique challenges. While the technology has the potential to make running a business much more convenient and reduce costs substantially, utilizing it without the right contractual protections is incredibly risky.
Whether you have questions about your legal obligations surrounding AI use or you need help reviewing, drafting or negotiating a contract that addresses AI, Gouchev Law can help. Our understanding of AI technologies and laws allows businesses to make the most of AI while avoiding the many legal pitfalls surrounding its usage now and in the future.
Contact us today to learn more about how our firm can support you.
About the Author
Jana Gouchev isn’t just a lawyer. She’s a strategic partner for SaaS, AI, and tech-driven businesses looking to scale, secure enterprise deals, and stay ahead of evolving regulations. As Managing Partner of Gouchev Law in NYC, Jana brings top-tier expertise in Corporate Law, Data Privacy, AI Law, Complex Commercial Contracts, IP, and M&A, with a strong track record of negotiating high-stakes deals.
With experience at an AmLaw 50 firm, Jana advises executives at industry-leading brands like Estee Lauder, Hearst, Barclays, Nissan, and cutting-edge SaaS and consulting firms. Frequently quoted in Forbes, Bloomberg, and Business Insider, she’s recognized as a go-to legal mind for the tech world.
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