PredictX urges companies to incorporate ‘AI Addendum’ with supplier contracts

This will help address specific legal and data privacy considerations

AI-driven business travel data intelligence specialist PredictX has called for organisations to include an ‘AI addendum’ within supplier contracts, to address specific legal and data privacy considerations when bringing AI services into their operations.

In a bid to help companies streamline this process and introduce AI capabilities with confidence, PredictX has created an AI addendum template resource, available for use not only by PredictX customers but by any enterprise that is negotiating contracts with suppliers for AI-based solutions.

The addendum provides a ready-made document framework that can be attached to a privacy or master service agreement. 

It is designed to help organisations tailor the contract to meet their specific needs, whilst also saving time and effort in drafting their own terms. 

The addendum defines key terms, addresses intellectual property rights, and sets expectations for warranties, data protection, and compliance with laws such as GDPR and CCPA. 

It also covers the responsibilities of both parties concerning the use of AI models, the handling of data, confidentiality, and the limitations of the AI services, ensuring that both parties are clear on their obligations and the scope of the agreement.

Keesup Choe, CEO of PredictX, said: “Companies are increasingly looking to incorporate AI services into their operations; however we identified that many lack the expertise to draft comprehensive contracts that address the unique legal and security considerations of AI. 

"Given that there is an overall wariness among consumers, including business travellers, regarding use of AI and its impact on personal data security, it is important that companies not only work with reputable AI service providers, but that they also include specific terms in their service agreements.

“At PredictX, we are experts in this area, as we have been pioneers in the use of AI, machine learning and data science for travel and expense analytics for over a decade. We therefore felt it was important for us to share our expertise with the wider business community by creating a template AI Addendum which serves as a valuable tool during the contracting process, providing a standardised yet customisable legal document.”

The AI Addendum resource is available to download, free of charge, via the PredictX website.