Ask HN: AI Founders, how do you handle liability clauses?

1•midgard27•8mo ago

tldr: AI startup in compliance. About to sign first mid market contract but the contract has some clauses related to being held liable for potential damages in case our AI doesn't perform as expected. In a way, it makes sense because we are promising to replace critical workflows.

For AI founders selling to enterprise, ever come across something similar? I want to sign the deal but a bit worried about potential liability.

Comments

bigyabai•8mo ago

Having a plan to handle liability is like 90% of what you're payed for in this business. If your only contingency is "trust AI to handle compliance" then you're fucked.

Honest question - how do you even think about making a compliance startup without considering your own liability?

baobun•8mo ago

How is this not a core part of your strategy prior to engaging customers? Risk management and liability is what compliance contracts are all about, no? I'm a bit incredulous it sounds like you are seriously considering going in blind with your customer (and by extension your own biz) unprotected...

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