For Founders Law

Tech, AI and SaaS

AI product terms

Inputs, outputs and training use, in plain terms. Terms for your customers, users and partners.

What it is

AI product terms set out what customers can put into your AI features, how the output can be used, and whether you can train on their data. They also include acceptable use rules for the product.

Customers often ask these questions directly, and general terms of service rarely answer them. Clear terms also set expectations about the accuracy of AI output before anyone relies on it.

You likely need this if

  • Your product uses a language model or other AI to generate output
  • Customers upload data, documents or prompts
  • You want to train or fine-tune on customer or user data
  • A business customer asked how you use their data with AI

What the starting price includes

  • AI-specific terms for inputs, outputs and training use
  • Acceptable use terms
Read first What should my AI product terms of service cover? AI product terms should say who owns inputs and outputs, whether you train or improve models on customer data, that output can be wrong and should be reviewed, what users may not do with the product, and which third-party models process the data. They sit alongside your terms of service or SaaS agreement and must match your privacy policy. In Canada, privacy law, the Competition Act and Quebec's rules on automated decisions already apply to AI features, even without an AI-specific statute. Read the guide

Terms you’ll hear

SaaS agreementPIPEDA

Often needed with it

Questions founders ask

Who owns the output?

The terms allocate rights in inputs and outputs between you and the customer by contract. Copyright law hasn’t settled every question about AI-generated material, which is one reason to deal with it in the terms.

Can we train on customer data?

Only if your terms and privacy policy allow it, and personal information is handled as privacy law requires. Many business customers will ask you to limit or exclude training on their data.

Do these replace our terms of service?

No. They usually sit alongside your terms of service or SaaS agreement, either as a section within them or as separate terms.

General information, not legal advice.

How it works

  1. A free 15-minute call. What you’re building and what you need.
  2. A written scope and fixed fee. Before any work starts.
  3. A short, tailored intake. A few focused questions for your matter, so we start with what we need.
  4. Drafting or review. Most work is back within three business days.
Send us a note All fees