Legal Artificial Intelligence (AI) Model and Service Development Contract Review

Law firm Veat reviewed and revised, and proposed negotiation terms for a contract between a legal tech startup A (hereinafter 'client') providing legal artificial intelligence (hereinafter "AI") models and services, and the development company developing the services.

AI service development includes important legal considerations in various aspects such as software development contracts for AI-based legal service development, AI development contracts, and AI model development contracts. That is, the AI service itself can be composed of detailed items such as AI model implementation and AI service provision, unlike existing SI development work, and legal review is essential for this.

Law firm Veat focused on clearly defining the scope of AI model development and the corresponding responsibilities, and specifying quality and inspection procedures to guarantee the quality of the deliverables. In particular, it thoroughly reviewed detailed items such as how to implement the AI model, the extent of learning to be performed, and how to use data for learning, to ensure that the client does not experience problems due to the scope of work in the future.

Also, whether the development company can develop the AI model and use it for other businesses is very important, and this should be reviewed in terms of copyright and trade secret protection. Law firm Veat systematically reviewed clauses regarding ownership of the developed AI model and ownership and usage rights of the training data, and reviewed a contract considering unique considerations such as mutual sharing of materials for AI (AI) model development and training data, and ownership of the completed model.

In the case of AI development, it is very important for the development company to secure AI models and learning data through development, and the contract should be reviewed to enable the development company to maintain them, which is important for the development company to perform more advanced AI development based on these materials in the future. Customized legal advice considering unique considerations such as AI model and service is recommended.

Since AI development is also a software development service, clearly defining elements such as development scope, development responsibility, quality, and inspection, which are important review items in the development contract, is essential to prevent disputes that may arise during the development process. In particular, in advanced technology fields such as legal AI model and service development, it is possible to prevent disputes that may arise during the development process by clearly defining various unique elements such as mutual sharing of materials for AI model development and ownership of the completed model.

 Importance of AI Development Contract

An AI development contract should clearly define the necessary legal protection and rights in the process of developing and operating AI models. It is a very important element of AI projects to clearly define technology protection, safe use of data, division of roles by development stage, legal responsibility, and regulatory compliance.

Law firm Veat, based on its expertise in AI and IT legal advisory services and abundant experience, is helping companies safely and effectively develop and utilize AI technology by minimizing legal risks alongside the advancement of AI technology, and providing solid support to companies pursuing innovation.

Law firm Veat includes IT specialist attorneys certified by the Korea Bar Association, partner attorneys Baek Seung-cheol and An Il-woon, and has a unique advantage of simultaneously understanding domain knowledge (domain knowledge) in advanced fields such as artificial intelligence, based on a background in engineering and practical experience in advanced fields. Also, partner attorney Jo Eun-byeol is a member of the Seoul Bar Association’s Special Committee for Artificial Intelligence and Legal Tech Response, and possesses expertise and abundant advisory experience in the fields of artificial intelligence (AI) and legal tech.

As a legal expert for the growth of AI-related companies, if you need the best legal advice based on experience and knowledge specialized in the AI industry, such as generative AI, ChatGPT, and LLM technology, regarding various legal issues such as software development contracts, AI development contracts, and AI model development contracts, please contact Law firm Veat.

Thank you.

Law firm Veat