Insights

Artificial Intelligence

Artificial intelligence insights on vendor contracts, customer data, and product compliance.

AI Claims in Product and Marketing Copy Under Section 5 of the FTC Act

A claim that an AI product identifies fraud, achieves a stated accuracy, replaces a professional, or verifies a user’s age makes a factual promise about the product. Your business needs evidence that supports the promise before customers see it. That applies to claims in advertising, sales presentations, app listings, and the product’s interface.

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AI Vendor Terms, Training Rights, and What the Contract Has to Say

The terms governing an AI product’s model provider determine whether customer data may be used for training, how long prompts persist, and who answers for an infringing output. Those answers depend on the service, the agreement, and the settings your business uses.

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COPPA for AI Products That Serve Children or Process Their Information

COPPA treats information a child submits to an AI product differently from information an adult supplies about that child. The distinction determines the operator’s duties concerning consent, vendor contracts, notices, and retention.

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Data Retention and Deletion in AI Products

An AI product may retain customer information in uploaded files, saved conversations, generated responses, search indexes, vendor logs, and backups. A deletion request requires the business to identify the information covered by the request, determine where it is held, and apply the duties and exceptions that govern each location.

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Internal AI Use Policies for Businesses

A written AI use policy addresses how employees handle confidential information, use generated content, and evaluate people with automated tools. It identifies approved accounts, limits what employees may submit, and assigns responsibility for reviewing output and responding to incidents.

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Privacy Policy Accuracy for AI Products

An AI product’s privacy policy must describe what happens to personal information when the business and its vendors process it. Statements about model training, human access, retention, and deletion need to account for the services and settings the product uses.

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