In a Law360 article, IP transactions and technology partner Regina Sam Penti, IP transactions counsel Georgina Jones Suzuki and IP transactions associate Derek Mubiru analyzed the recent trend of artificial intelligence (AI) providers offering indemnity shields and urged businesses to exercise caution in relying on these indemnities.

In response to a number of intellectual property lawsuits that have been filed against several of the leading technology companies behind the largest generative AI models, many of these providers have offered so-called indemnity shields that aim to protect their enterprise customers from liability. However, these promises are typically nuanced, with gray areas and potential gaps that may leave businesses exposed.

The article explores the contours of the IP indemnification protections offered by providers of generative AI models — including their scope, coverage, conditions, exclusions and caps — to assess where businesses may still face liability exposure.