If something goes seriously wrong with AI21's service and you want to hold the company financially responsible, the most you can recover is either $100 or whatever you paid AI21 in the prior year, whichever is larger.
This analysis describes what AI21 Labs's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
For developers or businesses that rely on AI21's API for production systems, a liability cap of $100 or twelve months of fees may be far below the actual cost of a service failure, data incident, or harmful output.
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.
View change record →If AI21's service causes financial harm, exposes sensitive data, or produces outputs that result in damage, the agreement limits any legal recovery to $100 or the prior year's payments. For most consumer-tier users this may be nominal; for enterprise customers, this cap may not reflect actual commercial exposure.
How other platforms handle this
If you knowingly misrepresent that any activity or material on our Services is infringing, you may be liable to ActiveCampaign for certain costs and damages.
A party's liability for any Liability under these Terms will be reduced proportionately to the extent the relevant Liability was caused or contributed to by the actions (or inactions) of the other party...
The Netflix service and/or some of the Netflix content may not be available at any time as a result of events beyond our reasonable control...we will not be held liable should such events occur.
"TO THE MAXIMUM EXTENT PERMITTED BY LAW, AI21'S TOTAL AGGREGATE LIABILITY TO YOU FOR ANY CLAIMS ARISING OUT OF OR RELATED TO THESE TERMS OR THE SERVICES SHALL NOT EXCEED THE GREATER OF (A) $100 USD OR (B) THE AMOUNTS PAID BY YOU TO AI21 IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.Excerpt from AI21 Labs's Terms of Use
(1) REGULATORY LANDSCAPE: Liability caps in consumer contracts may be subject to challenge under consumer protection laws in the EU (Unfair Contract Terms Directive) and in certain US states where courts have found such caps …
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form
Get the research letter
Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean.
For developers or businesses that rely on AI21's API for production systems, a liability cap of $100 or twelve months of fees may be far below the actual cost of a service failure, data incident, or harmful output.
If AI21's service causes financial harm, exposes sensitive data, or produces outputs that result in damage, the agreement limits any legal recovery to $100 or the prior year's payments. For most consumer-tier users this may be nominal; for enterprise customers, this cap may not reflect actual commercial exposure.
ConductAtlas has identified this type of provision across 287 platforms. See the full comparison.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by AI21 Labs.