An AI use clause for client contracts
What an agreement should say about AI involvement, ownership limits, who carries the disclosure duty and how indemnity is allocated. With drafting language.
Every guide, comparison and workflow we’ve published on Agency Operations.
19 articles
What an agreement should say about AI involvement, ownership limits, who carries the disclosure duty and how indemnity is allocated. With drafting language.
Round counting priced a production cost that no longer exists. Price changes of direction, and make refinement unlimited inside a locked direction.
A generated asset can create exposure many times the invoice behind it. Why the fee-linked cap is standard, which carve-outs are fair, and what to concede.
Finding which model holds a brief is billable work most studios absorb. How to scope a model-selection pass, cap it on three axes, and invoice it defensibly.
Clients happy to run generated work often refuse to be named for it. Negotiate case-study permission at signature, not after delivery.
Showing everything you generated hands curation to the client. A rule for how many directions to present at each gate, and what to do with the rest.
Enterprise clients now require brand assets never enter a training set, and the duty flows through you to every tool. The clause, plus the audit behind it.
The 20 / 40 / 80 clips-per-month agency ladder mapped onto solo capacity, and why client review cycles rather than render time set the real ceiling.
Most agreements in force predate generative production and are quietly hostile to it. The six sections to amend, and how to raise it without alarm.
The rush fee used to price overtime, and generation removed the overtime. Price review-side displacement instead, with tiers, triggers and a reset script.
Asset-count retainers get gamed once variants are cheap. Build a capacity-unit retainer: what a unit buys, how unused units roll, and where the ceiling sits.
A one-page log of closed decisions, including rejected options, plus the scripts for citing it when a note returns three rounds later from someone new.
Disclosure, IP warranty carve-out, training-data exclusion, liability cap. What each clause stops, the order to negotiate them, and where the addendum belongs.
Build a per-client credit ledger covering drafts, rerolls, previews and exports so a quote survives three revision rounds, plus a monthly profitability check.
Vague audit rights over AI use turn into open-ended discovery. A scoped clause, plus the record set that makes the whole audit take an hour.
Contract language covering AI production, where audience disclosure is actually required, and the framing that sells iteration speed over cheap labour.
Blanket no-AI clauses are usually aimed at a risk you are not creating. A decision tree for complying, negotiating a scoped exception, or declining.
Indemnity splits two ways: you cover tool terms-of-service breaches, the client covers distribution and labelling. A two-way split to drop into an agreement.
Prompts, reference sets and workflow graphs built on a client job are unassigned in most contracts. Clause language that keeps method and gives outputs.