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Security28 September 2026·6 min read

AI vendor contracts: the clauses that matter

Standard software terms don't cover model training on your data, output ownership or model changes. Points to raise before signing.

When you send data to an AI provider, the contract governs what happens to it. Review the specifics rather than relying on marketing statements. This is a checklist for discussion with your legal team, not legal advice.

Points to check

  • Data use — whether your inputs and outputs are used to train models, and how to opt out.
  • Retention — how long prompts and outputs are stored, and deletion on request.
  • Location — where data is processed and by which sub-processors.
  • Change notice — advance warning of model changes or retirements.
  • Security evidence — audit reports and breach notification terms.
  • Exit — data return and deletion at the end of the contract.

Get commitments in the contract. Settings and documentation can change; signed terms are harder to change.

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