AI Circuit Breakers in Legal Contracts: A Safeguard for Business
Briefly

As artificial intelligence becomes integral to business operations, IT contracts are evolving to include safeguards such as AI circuit breakers. These mechanisms allow for intervention when AI systems behave unpredictably or present risks. Businesses are encouraged to define these safeguards in contracts to mitigate possible harms related to AI processes. Circuit breakers, which can operate automatically or require human intervention, help maintain control and oversight, ensuring regulatory compliance and addressing issues like bias or security breaches, providing both providers and customers with greater certainty and safety in AI deployment.
As AI integrates into operations, safeguards in IT contracts are evolving, exemplified by the concept of an AI circuit breaker, which acts as a risk mitigation mechanism.
AI circuit breakers, borrowed from engineering, offer a pause or override for AI systems exhibiting undesirable behavior, thus ensuring businesses maintain control over automated processes.
Both automated and human intervention forms of AI circuit breakers are crucial in IT contracts for ensuring safety, regulatory compliance, and managing risks associated with AI deployment.
The necessity of AI circuit breakers lies in their ability to mitigate risks such as inaccuracies, bias, security breaches, and provide contractual certainty to both AI providers and customers.
Read at Global IP & Technology Law Blog
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