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AI Contract Provisions: Key Terms for Licensing, Procurement, and Development Agreements

Introduction: Why AI Contracts Are Different # Artificial intelligence systems challenge traditional contract frameworks in fundamental ways. A standard software license assumes the software will behave predictably and consistently, the same inputs will produce the same outputs. AI systems, by contrast, may behave unpredictably, evolve over time, produce different results from identical inputs, and cause harms that neither party anticipated.