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Legal points to review first in generative AI service terms and privacy rules

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Overview

The terms of generative AI services can materially affect how a company may input data, use outputs and explain the service internally or to customers. The first review should focus on data use, confidentiality, personal information, intellectual property, liability and service continuity.

Practical perspective

The legal review should connect the service terms with the actual use case. A tool used only for public information creates different risks from a tool used with customer data, employee data, source code or unpublished business materials.

In practice, legal advice is useful only when it reflects the business model, internal rules, counterparty relationship, risk tolerance and timing of the decision. Generative AI can support initial organization, comparison and drafting, but attorneys should remain responsible for final legal judgment.

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Terms of service
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