Tag: Governance

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Ping® by Adlerlaw May 2026 – Navigating AI Liability in Business Contracts

Twelve Point Contract Drafting Checklist, plus Business Contracts & AI – What You Need To Know

Key Stat

Companies are deploying AI faster than they are updating contracts to address AI-generated risk. According to a recent Cost of a Data Breach Report 2025 by IBM, 63% of organizations lacked formal AI governance policies. (IBM)

AI & Governance Risk

Businesses or every size and industry operate at the intersection of technology, data, and regulation. As advanced technologies — including cloud services, SaaS platforms, and AI-enabled analytics — become core to service delivery, legal and regulatory challenges have grown in complexity. Employees may be introducing AI-related liability before legal departments even know the tools are being used. Business professionals face challenges to proactively manage legal risk, strengthen AI use practices, and align compliance strategies with operational goals.

Businesses seeking guidance on contract clauses and service agreements that protect both providers and clients must to navigate intellectual property risks tied to proprietary software, integrations, and third-party platforms, AI tools that generate and distribute all manner of content, and always changing regulatory considerations for delivering services across state and national jurisdictions.

We are seeing more clients requests analysis of how AI tools impact operational liability and contracts in particular. Key AI Disclosure considerations should include:

  1. Client Content Warranty
  2. Disclosure of AI Usage
  3. IP Ownership and Rights
  4. Accuracy Disclaimer
  5. Disclosure of Confidential Information
  6. Indemnification
  7. Limitation of Liability & Third-Party AI Tools and Terms

Don’t hesitate to contact us for help with AI-related concerns in your contracts and business operations.

Contract Drafting Tips for Cybersecurity

I recently presented Contract Drafting Tips for Cybersecurity: Protecting Monitoring Companies from Legal and Operational Risk to the 2026 TMA Mid-Year Meeting.

Participants walked away with a 12 point Cybersecurity Contract Drafting Checklist. Please contact Adler Law Group here to request a copy.