Don't sign yet: 7 things to check in an AI data offer
Seven questions to answer before anything leaves the building.
Before you sign, or send even a sample, get these seven answers in writing. Most buyers don't put them on their websites, so you have to ask.
1. Is the price real?
Buyers publish wide ranges, roughly $100,000 to a few million dollars, and call them estimates. Find out whether your number is a firm offer or an estimate, and what it's based on. Buyers mostly count office staff, not total headcount.
Ask: "Is this a firm offer or an estimate? Which systems, records and years is it based on?"
2. Is it exclusive?
Exclusive means you can't sell the same records to anyone else. If that's worth something to them, it should be in the price.
Ask: "Is it exclusive? For how long? What's the price without exclusivity?"
3. How long do they keep it?
Watch for "perpetual," "irrevocable" and "sublicensable" in the same sentence. Together they mean forever, no take-backs, and they can pass it on. And once an AI has learned from your data, it can't really unlearn it.
Ask: "How long can you and your customers use it? When will you delete the raw data, and will you confirm that in writing?"
4. What exactly are they taking?
The records worth the most carry the most risk. A salesperson's inbox has customer files, your pricing and your customers' names in it. You can start small. Some buyers say so on their own websites.
Ask: "List every system, mailbox and year in scope. What's the price if we leave out email, chat and customer files?"
5. When do you get paid?
Most buyers pay after they accept your data, not when you sign. Without clear acceptance rules, it's like delivering work to a customer who can reject it for any reason.
Ask: "What triggers payment? How long do you have to accept, and what happens to data you reject?"
6. Who else is in the deal?
The company on the letter is often a middleman, and some won't say which AI lab ends up with your data. The person who introduced you may be paid by the buyer too.
Ask: "Who receives the data, including contractors and the end buyer, and where are they? Is anyone being paid for introducing us?"
7. Is it yours to sell?
Having it on your server doesn't make it yours. Customer files, employee records, email with your lawyer and anything regulated all need a hard look. You'll also be asked to promise you have every permission you need. If that promise is wrong, the risk is yours.
Ask: "What do we have to guarantee, and is our liability capped? Will you accept a scope that leaves out customer, controlled and employee records?"
The short version
| # | Check | Slow down if |
|---|---|---|
| 1 | Price | It's an estimate, or nobody says what it's based on |
| 2 | Exclusive | No end date, or no price for it |
| 3 | How long | "Perpetual" and no deletion date |
| 4 | What data | "All company data" or a link to connect everything |
| 5 | When paid | They accept "at their discretion" with no deadline |
| 6 | Who else | No names, or the person who introduced you won't say if they're paid |
| 7 | Yours to sell | A customer bans AI training, or your liability has no cap |
This isn't legal advice. Take the letter and this list to your attorney before you sign.