CA-C-003027
AI21 Labs — AI21 Labs Terms of Use
Entity
Date detected
June 16, 2026
Effective date
June 16, 2026
Severity
Direction
Negative
Affected users
all users california residents eu users
Taxonomy
Transparency removal
Changes
+7 sentences added · −11 sentences removed · 12 sentences modified
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Event Summary

AI21 Labs updated its Terms of Service on June 16, 2026, making material changes to its cookie consent and data collection disclosures. Previously, the terms explicitly offered users the ability to opt out of the sale of personal data and targeted advertising through a dedicated "Your Opt-Out Rights" button. The updated terms replace this specific opt-out language with a more general cookie consent framework that requires users to affirmatively click "Accept" to allow cookies for site navigation, usage analytics, and marketing efforts. The practical difference is that the prior explicit opt-out mechanism for data sales and targeted advertising has been removed and replaced with a cookie-based consent model where some cookie types may be blocked, but the specific right to opt out of data sales is no longer prominently featured in the accessible terms text.

MEDIUM

Consumer Impact

The updated terms remove the explicit "Your Opt-Out Rights" button that previously allowed users to opt out of data sales and targeted advertising. In its place, the revised language establishes a general cookie consent framework requiring users to click "Accept" to allow cookies for site navigation, usage analysis, and marketing efforts. Users retain the ability to choose not to allow certain cookie types, but the prior dedicated opt-out mechanism for data sales and targeted advertising is no longer explicitly described in the accessible terms interface. If you wish to control cookie preferences, you can click on the cookie settings to modify consent for different types of cookies; however, strictly necessary cookies cannot be declined as they are required for core website functionality.

Governance Analysis

The updated terms restructure how users access privacy controls and opt-out rights. Rather than providing an explicit button dedicated to opting out of data sales and targeted advertising, the revised language embeds consent management within a general cookie framework. This change affects the accessibility and prominence of privacy choices, and may impact compliance with statutory privacy law requirements in California and the EU that mandate clear, accessible opt-out mechanisms. Organizations relying on AI21's services should verify that the revised framework remains adequate for their vendor compliance obligations.

Available Actions

Review your cookie settings when prompted and select 'Cookie Settings' to manage preferences for non-essential cookies.

Confirm that the updated terms still permit you to decline marketing and analytics cookies if you prefer to limit data collection.

If No Action Is Taken

Cookies for marketing and analytics will be stored on your device as described in the updated terms if you click 'Accept'.

If you do not review or adjust your cookie preferences, the default settings will apply and AI21 will be able to collect usage and marketing data as authorized by the updated terms.

Key Clauses Affected

Data sale opt-out mechanism

Explicit button-based opt-out for data sales and targeted advertising was removed and replaced with general cookie consent language.

Cookie consent framework

Updated to require affirmative acceptance for cookies used in marketing and analytics, with ability to decline certain non-essential cookies.

Strictly necessary cookies

Explicitly stated that first-party strictly necessary cookies cannot be declined as they are required for website functionality.

Full clause-by-clause analysis available with Compliance.
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This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology

Evidence Verification

✓ Verified
Previous Version
d57696a5c32200cdd794c6cf21f2b874fff86e37e1ab9c8d63ec3c70136e65b4
April 30, 2026 06:39 UTC
✓ Verified
Current Version
42a1f81525320b88d04dc6d7fbaa41286524853a2bb83658b4150dbd97aa770a
June 16, 2026 07:24 UTC
✓ Verified
Change Detected
June 16, 2026 07:24 UTC
Analysis Methodology
✓ Verified
Source Document
https://www.ai21.com/terms-of-use
Citation Record
Entity: AI21 Labs
Document: AI21 Labs Terms of Use
Record ID: CA-C-003027
Captured: 2026-06-16 07:24:49 UTC
URL: https://conductatlas.com/change/2026-06-16-ai21-labs-ai21-labs-terms-of-use-3027/
Accessed: June 16, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.

Impact Summary

1
Protection removed
Consumers Removed

Users no longer have a clearly labeled, dedicated button to opt out of data sales and targeted advertising; instead, they must manage cookie preferences through a general cookie settings interface.

For legal and compliance teams

Institutional Analysis

Assessment

AI21 Labs restructured its cookie and data collection consent framework by removing language that explicitly offered users the ability to opt out of the sale of personal data and targeted advertising. The prior terms featured a dedicated opt-out button; the updated terms replace this with a more general cookie consent model requiring affirmative acceptance for analytics and marketing cookies. For organizations that rely on AI21's services or have vendor relationships, this change affects how AI21 discloses its data handling practices and may engage California Consumer Privacy Act (CCPA) compliance frameworks and General Data Protection Regulation (GDPR) consent requirements, depending on user location. The removal of an explicit data-sale opt-out may require review against state privacy law obligations if AI21 continues to process California resident data. The change is material enough to warrant review by compliance teams responsible for vendor privacy practices and privacy-related risk assessment.

Regulatory Exposure

CCPA (California Consumer Privacy Act), GDPR (General Data Protection Regulation), LGPD (Brazil)

Full compliance analysis

Obligation analysis, escalation trigger, board language, and recommended action.

Monitor $19/mo Compliance $249/mo

Monitor: regulatory citations + obligations. Compliance: full compliance memo.

ConductAtlas provides verified policy intelligence sourced directly from platform documents. All analysis is intended to support, not replace, legal and compliance review. Record CA-C-003027.

Clause-Level Changes

New Provisions Added
Input and Output License for Model Improvement
Medium

This new provision grants AI21 explicit legal rights to use user inputs and outputs for model improvement while maintaining a 'solely for service provision' limitation, representing a narrower but more formally structured approach to training data usage than the previous broader language.

Full clause text available with Compliance. See Compliance →
Provisions Removed
Training Data Use from User Inputs
High

This provision's removal eliminates the explicit allowance for using user data to train and develop models, though the new 'Input and Output License' provision appears to replace it with more formally structured language, potentially reducing user leverage in negotiating separate agreements.

Removed clause text available with Compliance. See Compliance →
Prohibition on Competing Model Training
Medium

Removal of this explicit prohibition eliminates clear restrictions on competitive model development, which may either represent a relaxation of terms or indicate the provision moved to acceptable use policies or other sections of the agreement.

Removed clause text available with Compliance. See Compliance →
Intellectual Property in User Inputs and Outputs
Medium

This detailed provision explaining IP ownership in inputs and outputs is removed and replaced with only the license grant provision, eliminating explicit clarification that users retain input ownership and receive output ownership, and losing the important disclaimer about output non-uniqueness.

Removed clause text available with Compliance. See Compliance →
Class Action Waiver and Dispute Resolution
High

Removal of the explicit class action waiver and binding arbitration requirement represents a significant shift away from mandatory individual arbitration, potentially restoring users' rights to pursue class action litigation and court remedies.

Removed clause text available with Compliance. See Compliance →
Provisions Modified
Aggregate Liability Cap
High

Changed from 'CUMULATIVE' to 'AGGREGATE' liability terminology, removed 'WHETHER IN CONTRACT, TORT, OR OTHERWISE' language, simplified currency notation from 'ONE HUNDRED U.S. DOLLARS ($100)' to '$100 USD', and reordered the greater-of comparison clauses.

Before/after clause text available with Compliance. See Compliance →
Termination Without Notice
High

Simplified and consolidated the provision by removing service modification/discontinuation language, removing the 'for any reason' and 'if AI21 believes you have violated these Terms' conditions, and adding 'effective immediately' to emphasize immediate enforcement.

Before/after clause text available with Compliance. See Compliance →
Unilateral Modification of Terms
Medium

Shifted from modifying Services to modifying Terms themselves, added requirement to provide notice via 'Last Updated' date for material changes, and added automatic acceptance mechanism through continued use.

Before/after clause text available with Compliance. See Compliance →
User Indemnification Obligation
Medium

Removed 'licensors, and service providers' from the list of indemnified parties, simplified damages list by removing 'judgments, awards, costs', and broadened trigger language from 'arising out of or relating to' to 'arising out of or in any way connected with'.

Before/after clause text available with Compliance. See Compliance →
Governing Law and Jurisdiction
Medium

Changed 'legal action or proceeding arising under these Terms' to broader 'dispute arising out of or relating to these Terms or the Services', and removed explicit consent to personal jurisdiction and venue language.

Before/after clause text available with Compliance. See Compliance →
Disclaimer of Warranties
Medium

Changed 'EITHER EXPRESS OR IMPLIED' to 'WHETHER EXPRESS OR IMPLIED', changed 'WITHOUT LIMITATION ANY WARRANTIES' to 'INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES', removed 'ACCURACY' from warranties list, and changed final clause from 'THAT ANY DEFECTS WILL BE CORRECTED' to 'OR FREE OF HARMFUL COMPONENTS'.

Before/after clause text available with Compliance. See Compliance →
Acceptable Use Policy and Content Restrictions
Medium

Expanded from general content restrictions to a detailed enumerated list of four specific prohibited uses, replaced 'deceptive, hateful' with 'threatening, abusive, harassing, defamatory, or otherwise objectionable', removed the general responsibility clause, and added specific provisions against impersonation and misrepresentation.

Before/after clause text available with Compliance. See Compliance →

Cross-platform context

See how other platforms handle similar provisions across the ConductAtlas archive.

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Full Changes

See the full side-by-side comparison of every sentence added, removed, and modified.

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Document Context

Version history → Policy drift analysis → Document page →
Document
AI21 Labs Terms of Use
Entity
AI21 Labs
Captured
June 16, 2026
Source URL
https://www.ai21.com/terms-of-use
Other changes to AI21 Labs Terms of Use
Previous change Apr 30, 2026
AI21 Labs revised its cookie and tracking consent language on April 30, 2026. The updated terms now explicitly state that …
Low Neutral
View full version history →
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Apr 30, 2026 Low
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