Build responsible AI practices into your NDAs. Address bias, prohibited uses, transparency, and human oversight with ready-to-use ethical AI clauses.
Key areas where AI NDAs should address responsible use
Ensure AI systems don't discriminate or perpetuate harmful biases.
Enable understanding of how AI systems make decisions.
Maintain meaningful human control over AI decisions.
AI uses that should be explicitly banned in NDAs
Lethal autonomous systems, weapons targeting, or military applications without human control.
Indiscriminate monitoring, social scoring, or tracking that violates privacy rights.
Systems that discriminate in employment, housing, credit, or other protected areas.
Creating fake media of individuals without consent, especially for deception or harassment.
Exploiting vulnerabilities, addiction mechanisms, or dark patterns that harm users.
Unauthorized data collection, tracking, profiling, or surveillance of individuals.
Key clauses to include in AI-related NDAs
Requires parties to conduct bias testing before deploying AI systems, document methodologies, and share results when relevant to the NDA's purpose.
High-Risk AI: RequiredExplicitly lists applications where the AI technology cannot be used, with specific examples and clear boundaries.
All AI NDAs: RequiredRequires meaningful human involvement in high-stakes decisions, defines escalation thresholds, and ensures override capability.
Decision Systems: RecommendedDefines what information about AI decision-making must be disclosed to affected parties and regulators.
Consumer AI: RecommendedGrants rights to audit AI systems for bias, safety, and compliance while protecting confidential implementation details.
Enterprise AI: RecommendedSpecifies who is responsible when AI systems cause harm, including indemnification and insurance requirements.
All AI NDAs: RequiredReady-to-use ethics provisions for AI NDAs
Customize the list based on your specific technology and risk profile.
Specify particular testing frameworks if your industry has standards.
Define "high-stakes decisions" specific to your use case.
Balance audit rights with the receiving party's legitimate confidentiality interests.
How to incorporate ethics provisions effectively
Determine the risk profile of the AI application. Higher-risk uses (healthcare, employment, criminal justice) require more robust provisions.
Be specific about prohibited uses. Vague language leads to disputes. Provide concrete examples of both permitted and prohibited applications.
Clarify who is responsible for bias testing, human oversight, and compliance monitoring. Shared responsibility requires clear delineation.
Ethics provisions without consequences are aspirational, not contractual. Include audit rights, termination triggers, and indemnification.
AI ethics standards evolve rapidly. Include mechanisms to update provisions as regulations and best practices change.