New EU Model Contractual Clauses for AI Procurement Offer Protection and Guidance

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New EU Model Contractual Clauses Offer Guidance and Protection for AI Procurement

With the draft EU AI Act making its way through trialogues and the understanding that AI procurement requires careful consideration, organizations are facing tough choices on how to responsibly source AI and protect themselves in a developing legal landscape. To tackle these challenges, a multi-stakeholder group within the European Commission has released a new proposal for standard EU model contractual clauses for AI procurement.

The model clauses consist of two templates that align with the risk classification outlined in the draft EU AI Act. One set is designed for non-high-risk AI uses, while the other is for high-risk AI systems. These clauses serve as schedules to existing contractual agreements and are not standalone documents. They can be accessed here for reference.

The clauses include provisions that establish essential requirements for AI systems before delivery. These requirements encompass the implementation of risk management systems by the supplier, the adoption of data governance models for training datasets, and compliance with ethical standards. Additionally, the clauses outline obligations for the supplier, such as the deployment of quality management systems to ensure compliance with the specified provisions. They also include stipulations on the use of datasets by the acquiring company or public authority, the supplier, and third parties.

Several annexes accompany the model clauses, providing detailed information on the AI system’s purpose, description of the used datasets, technical documentation requirements, instructions for use, and measures taken to ensure ethical compliance.

The high-risk version of the model clauses introduces additional obligations for the supplier. This includes conducting a conformity assessment to ensure compliance with the provisions, implementing corrective actions in case of non-compliance, and cooperating in audits. The issue of the supplier’s liability in the event of claims by third parties is also addressed.

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It’s important to note that the model clauses solely encompass provisions specific to AI systems and do not cover obligations or requirements arising from other applicable legislations, such as the GDPR. Their purpose is not to offer a comprehensive set of prescriptive drafting but rather to grant contracting parties the responsibility of assessing the adequacy and proportionality of each section based on their specific context.

Initially, the clauses were designed to address the concerns faced by public authorities procuring AI systems. However, they can serve as a valuable benchmark for private organizations looking to align their contractual provisions with industry standards.

By adopting these model contractual clauses, organizations are encouraged to establish procurement procedures that prioritize innovation and place emphasis on accountability and transparency throughout the process. It’s important to note that their adoption is voluntary.

While the model clauses are a significant step towards addressing the challenges associated with AI procurement, they are not a comprehensive solution. The rapidly evolving regulatory landscape requires organizations to approach the sourcing of AI technology with a comprehensive strategy. Nonetheless, these model clauses provide a starting point to determine the direction organizations have taken thus far.

In conclusion, the introduction of the new EU model contractual clauses for AI procurement offers organizations much-needed protection and guidance in navigating the complexities of this rapidly advancing technology. By adhering to these clauses, organizations can ensure responsible sourcing, implement appropriate risk management systems, and comply with ethical standards. While the clauses are initially aimed at public authorities, they can serve as a valuable resource for private organizations to assess and enhance their contractual provisions. As the trialogues on the draft EU AI Act near their conclusion, these model clauses present an important development in establishing a solid legal framework for AI procurement.

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Frequently Asked Questions (FAQs) Related to the Above News

What are the new EU model contractual clauses for AI procurement?

The new EU model contractual clauses for AI procurement are a set of templates that provide guidance and protection for organizations sourcing AI technology. There are two sets of clauses: one for non-high-risk AI uses and another for high-risk AI systems.

How do the model clauses align with the draft EU AI Act?

The model clauses align with the risk classification outlined in the draft EU AI Act. They serve as schedules to existing contractual agreements and include provisions that establish essential requirements for AI systems before delivery.

What are some of the requirements included in the clauses?

The clauses include requirements such as the implementation of risk management systems by the supplier, the adoption of data governance models for training datasets, compliance with ethical standards, and the deployment of quality management systems by the supplier. They also outline obligations for the use of datasets by the acquiring company or public authority, the supplier, and third parties.

Are there any additional obligations for high-risk AI systems?

Yes, the high-risk version of the model clauses introduces additional obligations for the supplier. This includes conducting a conformity assessment, implementing corrective actions in case of non-compliance, and cooperating in audits. The issue of the supplier's liability in the event of claims by third parties is also addressed.

Do the model clauses cover other legislative requirements?

No, the model clauses specifically address provisions related to AI systems and do not cover obligations or requirements arising from other applicable legislations, such as the GDPR. The contracting parties are responsible for assessing the adequacy and proportionality of each section based on their specific context.

Who can benefit from these model contractual clauses?

Initially designed to address concerns faced by public authorities, these clauses can also serve as a valuable benchmark for private organizations looking to align their contractual provisions with industry standards.

Are organizations required to adopt these model clauses?

No, the adoption of these model clauses is voluntary. However, organizations are encouraged to consider them as a means to establish procurement procedures that prioritize innovation, accountability, and transparency in AI sourcing.

Are the model clauses a comprehensive solution for AI procurement challenges?

While the model clauses are a significant step towards addressing the challenges associated with AI procurement, they are not a comprehensive solution. The rapidly evolving regulatory landscape requires organizations to approach AI sourcing with a comprehensive strategy.

What benefits do organizations gain from adopting these model clauses?

By adopting these model clauses, organizations can gain much-needed guidance and protection in navigating the complexities of AI procurement. They can ensure responsible sourcing, implement appropriate risk management systems, and comply with ethical standards.

Can private organizations use these model clauses?

Yes, although initially aimed at public authorities, private organizations can also use these model clauses as a valuable resource to assess and enhance their own contractual provisions.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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