MKAI · Working paper

    The Liability Transfer

    Published July 2026

    Abstract

    This paper examines the public contracts for seven enterprise AI services. Across all seven vendors, the terms make the customer responsible for the AI output. Elsewhere, these same contracts disclose that the output is affected by vendor controls such as filters, system instructions, safety features, retrieval rules, data masking, or classifiers. However, the clauses assigning user responsibility completely ignore these controls.

    Suggested citation

    Foster-Fletcher, R. (2026). The Liability Transfer: How enterprise artificial intelligence terms assign responsibility in one place and describe controls elsewhere. MKAI Working Paper.

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    PDF size: 185 KB

    Record metadata

    Type
    Working paper
    Theme
    Responsibility and controls in enterprise AI contracts
    Status
    Published working paper

    Methods

    • Contract reading
    • Three-question coding scheme
    • Vendor comparison

    Keywords

    liabilitycontractsenterprise AI