Category: AI Contractual Risk & Vendor Liability

Contracts can shift some aspects of AI liability between parties, but they cannot eliminate liability entirely. While contractual provisions may allocate risk between vendors and customers, courts and regulators often look beyond contract language to assess who actually controlled and benefited from AI systems. Organizations that rely solely on contractual disclaimers to manage AI risk…

AI vendors can be liable when the systems they provide cause harm, but liability does not arise automatically. Courts, regulators, customers, and contracting partners may evaluate vendor responsibility based on control, representations, foreseeability, contractual obligations, and the role the vendor played in the AI system’s design, deployment, monitoring, or operation. While many AI contracts attempt…