Clause and Effect: AI Contracting and Vendor Management

This CLE addresses key privacy and cybersecurity risks in procuring and deploying AI tools and covers best practices for negotiating AI vendor agreements, including data use limits, security controls, audit rights, training restrictions, and liability. Aligned with AABANY’s theme of cultivating tomorrow’s leaders today, this panel equips lawyers to lead clients through the future of AI governance.

Key Takeaways

• Control Data Use and Training: Limit vendor rights to defined purposes and prohibit model training on your data without explicit consent.
• Embed Transparency and Oversight: Require audit rights, security controls, and change notifications to manage ongoing AI risk.
• Address Liability Upfront: Use tailored AI clauses (liability, indemnities, output risk) to rebalance vendor-favored terms.

CLE Information (Pending Approval)
1.5 Credits in Areas of Professional Practice
Transitional/Non-Transitional

Speakers:

• Anna Mercado Clark, Partner, Phillips Lytle LLP
• Esther Chiang, Chief Executive Officer and Co-Founder, SmartEsq, Inc

Moderator:

• Jamie Kim, Associate, BakerHostetler