Businesses are rapidly adopting generative AI, with a recent McKinsey study finding that 60-70% are already using or planning to use it in 2025. These new AI tools can boost productivity and spark creativity, but are you truly aware of the risks of using these tools? Before you incorporate AI-generated content into your workflow, it’s critical to understand the fine print, or end-user license agreements (EULAs).
Why the Fine Print Matters
AI-generated content usually lacks copyright protection. Plus, most EULAs severely restrict how you can use what the AI creates. Here are some key points to consider when reviewing these tools’ terms of service:
- Usage Rights: Many EULAs forbid commercial use without a paid license. You might only be able to use the content personally and even have to give the AI platform credit. Even if you get a commercial license, these often have further restrictions.
- Ownership: Typically, the AI platform owns the output, not you or your business. You likely can’t copyright it or stop others from using it. Your AI-generated content may also be publicly available, meaning others can use and modify it.
- Liability and Disclaimers: AI companies often avoid responsibility for what their AI platform creates. EULAs usually state you use the content at your own risk, must check AI outputs yourself, and that they aren’t liable for any issues like errors or offensive content. One AI tool’s term of service we reviewed limited its liability to just $100!
- Indemnification: Be extra cautious about indemnification clauses. These can put you or your company at significant financial risk, requiring you to cover legal costs if issues arise.
The Bottom Line: Generative AI is being integrated everywhere. Protect yourself and your business by understanding the limitations and potential risks of these tools. Don’t blindly rely on AI-generated content. Instead, have a process to carefully review all AI-generated outputs before using them and have your legal team carefully review any EULAs.
