The ownership and management of AI tools can vary significantly depending on whether these tools are custom-developed, off-the-shelf solutions, or sourced from open access platforms.
Essentially, this means that the control, customisation capabilities and flexibility available to you, the user, can be very different depending on which type of AI tool you decide to use.
But why is this important? When deciding to implement AI tools in our business operations, there are a number of elements to consider. While on the one hand, it’s key to be aware of the legalities associated with using artificial intelligence, we cannot afford to overlook both the quality of the data and the control we have over the end product, including its ownership. This is where the difference in AI tools comes into play.
Each scenario presents distinct challenges and opportunities for businesses aiming to harness AI capabilities.
Ownership Spectrum in AI Tools
- Custom-Developed AI: Businesses retain significant control over custom-developed AI solutions, tailored to specific operational needs. Ownership rights and contractual agreements dictate customisation levels and intellectual property ownership.
- Off-the-Shelf AI Tools: Pre-trained AI solutions offer convenience but limit customisation options. Businesses often have minimal control over terms and conditions, necessitating thorough due diligence during procurement to mitigate associated risks.
- Open Access AI Solutions: AI tools sourced from open repositories provide flexibility but come with licensing obligations and potential intellectual property challenges. Businesses must navigate open-source licensing terms to ensure compliance and protect proprietary interests.
Contractual Safeguards
Negotiating contracts for AI tools involves understanding the tool’s structure, data sources, and supplier obligations. Key considerations include warranties (i.e. guarantees), indemnities (i.e. agreement to compensate), liability allocations, and compliance with emerging AI regulations.
Effective management of AI tools requires a tailored approach to ownership and contractual safeguards. Whether adopting bespoke solutions or leveraging off-the-shelf AI, businesses must strategically navigate contractual negotiations to mitigate risks and maximise operational benefits.
As businesses increasingly adopt AI technologies, it’s crucial to understand and mitigate the associated risks for successful implementation. By proactively managing data quality, ensuring legal compliance, and addressing ethical considerations, companies can harness AI’s transformative power while protecting themselves from potential challenges.
This article is the second in our AI mini-series. Stay tuned for the next instalment, where we’ll explore AI from a regulation and compliance perspective. Did you miss our first article about all the key risks businesses must consider when implementing artificial intelligence? You can read it here.
