Compliance

AI Warranty

Contractual guarantees about AI system performance, accuracy, or compliance.

Definition

AI Warranties are contractual representations and guarantees about AI system characteristics. Unlike traditional software warranties, AI warranties must address unique aspects of machine learning systems.

Common AI warranty provisions address:

  • Performance: Accuracy rates, latency, availability
  • Non-discrimination: Absence of unlawful bias
  • Data practices: Compliance with privacy and data protection laws
  • IP rights: Ownership and non-infringement of training data and outputs
  • Compliance: Adherence to applicable AI regulations
  • Documentation: Accuracy of technical specifications

Negotiating AI warranties requires balancing vendor concerns about AI unpredictability with customer needs for accountability and recourse.

Sources

  • UCC
  • Contract Law