SAAS MASTER SERVICES AGREEMENT WITH AI GOVERNANCE CLAUSES
STATE OF ALABAMA
TABLE OF CONTENTS
PART A: STANDARD MSA TERMS
- Parties and Scope
- Access and Restrictions
- Service Levels
- Fees and Payment
- Data Protection
- Intellectual Property
- Confidentiality
- Warranties
- Indemnification
- Limitation of Liability
- Term and Termination
- General Provisions
PART B: AI GOVERNANCE ADDENDUM
- AI Service Definitions
- Transparency and Explainability
- Data Usage for AI
- Bias and Fairness
- Human Oversight
- AI-Specific Warranties and Disclaimers
- AI Risk Allocation
- Regulatory Compliance
- AI Audit Rights
PART A: STANDARD MSA TERMS
1. PARTIES AND SCOPE
This Agreement is entered into as of [EFFECTIVE DATE] by and between:
Provider: [PROVIDER LEGAL NAME] ("Provider")
Customer: [CUSTOMER LEGAL NAME] ("Customer")
2-12. [STANDARD MSA TERMS]
[Standard MSA provisions governing access, fees, data protection, IP, confidentiality, warranties, indemnification, liability limits, term, and general provisions per Alabama law]
Key Alabama-Specific Provisions:
- Late payment interest: Per Ala. Code § 8-8-1
- Data breach notification: Per Ala. Code § 8-38-1 et seq.
- Trade secrets: Per Alabama Trade Secrets Act (Ala. Code § 8-27-1 et seq.)
- Electronic signatures: Per Alabama UETA (Ala. Code § 8-1A-1 et seq.)
- Governing law: Alabama law, Alabama courts
- Consumer protection: Alabama Deceptive Trade Practices Act where applicable
PART B: AI GOVERNANCE ADDENDUM
13. AI SERVICE DEFINITIONS
13.1 "AI Services" means features utilizing artificial intelligence, machine learning, or automated decision-making.
13.2 "AI Model" means algorithms or neural networks providing AI Services.
13.3 "Training Data" means data used to train AI Models.
13.4 "Output" means results generated by AI Services.
13.5 "High-Risk AI Use" means AI use for decisions significantly affecting individuals (employment, credit, housing, healthcare, legal).
14. TRANSPARENCY AND EXPLAINABILITY
14.1 Documentation. Provider maintains descriptions of AI functionality, inputs, outputs, and limitations.
14.2 Explainability. For High-Risk AI Use, Provider offers explanations of individual Outputs upon request.
14.3 Model Updates. [30] days' notice before material AI Model changes.
15. DATA USAGE FOR AI
15.1 Customer Data Usage.
☐ Option A: Customer Data NOT used for training
☐ Option B: Training only with consent
☐ Option C: Aggregated/anonymized data only
15.2 Data Segregation. Technical measures prevent Customer Data leakage.
16. BIAS AND FAIRNESS
16.1 Bias Mitigation. Provider implements processes to detect and mitigate bias.
16.2 Alabama Non-Discrimination. AI Services shall not facilitate unlawful discrimination under Alabama law.
17. HUMAN OVERSIGHT
17.1 Human-in-the-Loop. Customer maintains human review for significant decisions.
17.2 Override Capability. Customer can override AI Outputs.
18. AI-SPECIFIC WARRANTIES AND DISCLAIMERS
18.1 Warranties. AI Services perform substantially as documented.
18.2 DISCLAIMERS.
- NO GUARANTEE OF ACCURACY. AI OUTPUTS MAY CONTAIN ERRORS.
- NO GUARANTEE AGAINST BIAS. BIAS MAY EXIST DESPITE MITIGATION.
- NOT PROFESSIONAL ADVICE. AI OUTPUTS ARE NOT LEGAL, MEDICAL, OR FINANCIAL ADVICE.
Customer Initials: _______
19. AI RISK ALLOCATION
19.1 Provider Risk. AI non-conformance, IP infringement, data breaches.
19.2 Customer Risk. Decisions based on AI Outputs, unauthorized use, data quality.
20. REGULATORY COMPLIANCE
20.1 Current Regulations. Provider complies with applicable AI guidance (FTC, EEOC).
20.2 Alabama Regulations. As of the Effective Date, Alabama has not enacted AI-specific regulations. Provider monitors for changes.
21. AI AUDIT RIGHTS
21.1 Audit. Customer may audit AI governance practices annually.
21.2 Remediation. Provider addresses findings within [60] days.
SIGNATURES
PROVIDER:
Signature: _________________ Name: _________________ Title: _________________ Date: _________________
CUSTOMER:
Signature: _________________ Name: _________________ Title: _________________ Date: _________________
ATTACHMENTS
- Attachment A: Order Form
- Attachment B: SLA Policy
- Attachment C: Support Policy
- Attachment D: DPA / Security Addendum
- Attachment E: Acceptable Use Policy
- Attachment F: AI Services Description
- Attachment G: AI Model Documentation