March 2017

Monthly Archives

  • Few Thoughts on Machine Learning Agreements or AI Agreements

    AI agreement

    Machine learning agreements or AI agreements are super new, and actually very interesting. Not much has been written on these agreements, so I thought I would share a few thoughts on the big issues (from the perspective of the AI/machine learning software vendor).

    So here goes.

    HOW THE AI SYSTEM WORKS AND WHO DOES WHAT MATTERS.

    • Everything starts and ends with the answers to this question.
    • This will drive what warranties you provide, the IP ownership model and in general the rights and obligations of the parties.
    • Example: whose algorithm is being used? Is this a perpetual or term based deal?

    WHO OWNS THE MACHINE LEARNING MODEL?

    • Usually customers own their input and output data from software programs, but it is not that simple with AI and machine learning agreements.
    • Machine learning models are generally viewed as the output from training a learning algorithm. The model will then be applied to the dataset. The model may contain parts of the underlying algorithm within the software, so I don’t think the ownership of the model matters, as much as who has what rights to the model and for how long.
    • One way to solve it is to allow the parties to use the machine learning model during the term of the agreement and then have the vendor destroy the model at the end of the agreement. This way, the vendor is free to independently recreate any future machine learning models, and the customer gets the protection from the vendor