Artificial Intelligence Addendum template

An add-on template for AI features, training data, outputs, and related risk.


What this contract contains

Preamble and parties.In the creator you enter each party, pick whether you are the customer or the provider, and name the main agreement and its date so this addendum layers on top of an existing MSA or services contract. Names the addendum, the parties, and the main agreement it attaches to. Choose your side in the creator.
Scope and permitted use.In the creator you list the AI features this addendum covers—an assistant, a scoring model, document review—so later clauses on training and outputs apply to a defined product, not every tool the provider ever ships. Names the AI features covered and how they may be used. You describe the features in the creator.
Training and fine-tuning.Customers often forbid use of their data to improve general models. In the creator you allow training, forbid it, or allow it only for the customer’s own tenant. That choice is one of the most important settings in an AI addendum. Says whether the provider may train models on customer data. Choose the permission in the creator.
Prompts and outputs.In the creator you choose whether the customer owns prompts and outputs, the provider owns them and licenses them back, or each side keeps what it contributed. Product and legal teams should not have to guess later. Decides who owns prompts and model outputs. Set ownership in the creator.
Human oversight.When this is on, you list the uses that need a person in the loop—credit, hiring, or other consequential decisions—rather than fully automated reliance. Optional requirement for human review on high-risk uses. Name those uses in the creator.
Providers, security, and logging.You can allow or restrict third-party model providers, and you choose how long AI logs may be retained. Transparency to end users is on by default and can be turned off. Covers third-party model providers and how long prompts and outputs may be logged. Set both in the creator.
AI disclaimer. States that outputs can be wrong and that the customer is responsible for how it relies on them.
Governing law.Governing law and venue decide which state’s rules apply and where a dispute must be filed, or whether it goes to arbitration instead. In the creator you pick a listed jurisdiction or enter another, then choose court or arbitration so the sample is not locked to a default state. Sets the state law that governs the addendum and where disputes must be brought. Choose the jurisdiction in the creator.
General. Covers assignment limits, waiver rules, severability, entire agreement language, notices, and counterpart or electronic-signature execution language.
Signature blocks. Authorized signatory and title lines for each party, ready for wet-ink or e-signature fields.

Frequently asked questions

When should I use an AI addendum?

Use an AI addendum when products expose generative AI to customer content, for enterprise deals where training on customer data is a hard no, or as an addendum to existing MSAs when AI features launch later.

Can this replace a DPA?

No. If personal data is processed, you still need appropriate privacy terms. An AI addendum layers model-specific rules on top of a DPA and the main commercial agreement.

Can I download this AI addendum template?

Yes. Use Download .docx to get a Word file with placeholders such as [Party A] and [Effective Date]. You can edit it in Word or Google Docs, or create a filled-in version in the free contract creator.

Is the sample legally binding as shown?

No. Placeholder sample text is a starting point. It becomes an agreement for your deal after you fill in the details—manually or in the free contract creator—and the parties sign. This addendum is meant to attach to a signed main agreement, not replace it.

When should I use the free contract creator instead of editing the file?

Use the free contract creator if you want guided choices for who you are, the main agreement, AI features, training permission, output ownership, oversight, model providers, log retention, transparency, and governing law, without hunting through every blank yourself.

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