Source: Conventus Law

This second part of the report continues the exploration of how Bermuda’s legal sector is developing contractual tools to manage AI risks effectively. It delves into specific clauses addressing liability, compliance with evolving regulations, data privacy, and intellectual property concerns. The report emphasizes the importance of operational testing, acceptance criteria, and warranty provisions to ensure AI solutions meet agreed specifications.

It also discusses the role of model contracts in providing standardized frameworks that can be adapted across sectors, particularly in Bermuda’s financial services industry. The report highlights the Bermuda Monetary Authority’s proactive stance on integrating AI risk management into regulatory codes and the growing need for contracts to reflect these expectations. The piece concludes by forecasting future developments in AI contracting practices as technology and regulation evolve.