Tech Attorney Cohort

AI Hallucinations and
Contract Risk in Practice
Part #3

Part 3 of a 3-Part Training Series:
What AI Clauses Actually Look Like in Contracts

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If you missed the first part of this 3-part training series "Why AI Errors Create New Contract Risk"  - click here to watch.
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If you missed the second part of this 3-part training series "The Contract Strategy That Changes AI Negotiations" - click here to watch.

Video Highlights

Drafting AI warranty clauses
Translating technology into contracts
Precise wording changes risk

Understanding the strategy is one thing. Actually drafting workable AI clauses is another.

In this final video, we move from theory into practical drafting and negotiation language for AI agreements.

This video shows how attorneys can translate technical AI mitigation measures into realistic contractual obligations. Instead of drafting impossible promises like “the AI will not hallucinate,” the focus shifts toward language that reflects the actual controls implemented within the AI system.

The video compares broad effort-based drafting against more detailed technical language tied to specific mitigation measures such as RAG, prompt engineering, guardrails, human review, and monitoring systems.

It also explains how drafting precision changes negotiation dynamics. More detailed clauses can create greater accountability and transparency for customers, while broader language gives vendors flexibility as AI systems evolve over time.

Most importantly, this video demonstrates how effective AI drafting requires attorneys to understand the underlying technology architecture, because contractual language is becoming increasingly connected to how AI systems actually function.

The concepts covered in this video extend far beyond hallucinations and will continue appearing across AI negotiations involving bias, security, training data, governance, and data usage rights.

This is where practical AI contracting becomes a real negotiation skill rather than simply a drafting exercise.

🚀 And this way of thinking about AI contracts is exactly what we go much deeper into in the Practical AIContract MasterClass 🎓

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This is a special early registration opportunity for the Practical AI Contract MasterClass to those of you who watched this video.

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You will receive 15% off the special launch price.

Use coupon code: AI052026
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🚀 AND I HAVE ALREADY OPENED EARLY REGISTRATION FOR YOU!

Details and early bird registration are available on this page:
Click here