Tech Attorney Cohort

FINAL PART of a 3-Part AI Training Series

A Practical AI Foundational
Model Change Clause

Name of AI Series: Who Gets to Choose the LLM?

AI Contract Negotiation Essentials for Navigating Transparency in AI Contracts:

Video Highlights

Limit notice to material changes
Tie objections to defined risks
Use proportionate feature-level remedies

Short Summary:
How to
Balance Vendor Flexibility and Customer Protection when Changing Foundational AI Models

The two extreme contractual positions are easy to identify. The customer may insist that the vendor cannot change the foundational model without prior written consent. The vendor wants complete freedom on model decisions without transparency or consent.

Neither position fully addresses the commercial problem.

A general veto right can interfere with the vendor’s ability to operate and improve its product, while complete vendor freedom fails to protect a customer that has evaluated and approved the existing model.

In this video, we explore a practical framework to include: Meaningful disclosure, notice of material changes, objections connected to defined risks and a workable, proportionate remedy if the parties cannot resolve the issue.

Watch the Full Series

This final video applies the positions developed throughout the series.‍

  • Part 1 explains the vendor's perspective - why a prior consent requirement can interfere with the vendor’s ability to manage its technology stack.
  • Part 2 examines the customer perspective -  why customers increasingly care about the identity and performance of the underlying model.

All three videos provides the complete framework, beginning with the disputed clause, continuing through the commercial and technical reasons behind each party’s position, and ending with a possible contractual compromise.

>> Click Here to Watch Part 1 | >>Click Here to Watch Part 2

Time to go Deeper with the Practical AI Contract MasterClass

This free AI training series focuses on one emerging AI contract negotiation: who should control changes to the foundational model powering an AI product.

The Practical AI Contract MasterClass goes further by examining the contractual issues created by AI technology from both the customer and vendor perspectives.

The focus is on understanding the technology, identifying the risk behind each position and developing practical solutions when the parties reach a deadlock.

Registration for this quarter's final cohort of Practical AI Contract MasterClass is open.
‍