Artificial Intelligence as a Litigation Multiplier: Contract and Risk Issues for AI-Enabled Services
Artificial Intelligence as a Litigation Multiplier: Contract and Risk Issues for AI-Enabled Services
Publish Date: 2026-05-28 11:55:00
Source Domain: www.bakerdonelson.com
- AI is increasingly integrated into existing technology services and platforms rather than being a standalone product.
- AI disputes often focus on how AI was deployed, contractual obligations, and responsibility allocation for AI-driven outcomes.
- Most AI disputes revolve around the three concepts of inputs, prompts, and outputs, concerning ownership, confidentiality, and permissible use.
- There is a distinction between general AI models that allow extensive use of customer data and closed systems with tighter data controls.
- “Human-in-the-loop” requirements and disclaimers shift risk to customers and form focal points in litigation.
- Acceptable use restrictions and unilateral updates to terms of use for AI systems may lead to disputes, especially in regulated industries.
- Most AI disputes are resolved using familiar contract-law principles rather than novel legal theory.
- Steps to mitigate risks include understanding contract terms, aligning internal policies, conducting gap analyses, and treating AI adds as legal risk events.
