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Synopsis
Unlike traditional software systems, artificial intelligence is probabilistic. So, clients are asking IT service providers to sign contracts with ‘unlimited liability’ clauses in case the AI system makes mistakes. And negotiations on this are proving to be a speed bump for AI adoption in India.
When a senior client partner at a technology firm selling GenAI co-pilots has to take the company’s legal team with him to potential customers, you know things have gotten a little complicated. At the core is one question that most clients are asking IT services companies these days: When a GenAI system blunders, who will pay and how much? “We had to take our lawyers with us. There are many questions about the legal issues – data privacy,
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