If your use of AI21's services causes a legal claim against AI21, you have to pay their legal costs and any damages — not just your own.
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
The indemnification obligation allocates financial and legal responsibility to users for defending the company against third-party claims connected to the user's conduct. This shifts litigation costs and damages exposure related to user violations or service use to the user rather than the company.
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 you misuse AI21's services — even accidentally — and a third party sues AI21 as a result, you are contractually obligated to cover AI21's legal fees and any resulting damages, which could far exceed what you paid for the service.
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"You agree to indemnify, defend, and hold harmless AI21 and its officers, directors, employees, agents, licensors, and service providers from and against any claims, liabilities, damages, judgments, awards, losses, costs, expenses, or fees (including reasonable attorneys' fees) arising out of or relating to your violation of these Terms or your use of the Services.Excerpt from AI21 Labs's Terms of Use
(1) REGULATORY FRAMEWORK: Indemnification clauses are governed by state contract law.
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The indemnification obligation allocates financial and legal responsibility to users for defending the company against third-party claims connected to the user's conduct. This shifts litigation costs and damages exposure related to user violations or service use to the user rather than the company.
If you misuse AI21's services — even accidentally — and a third party sues AI21 as a result, you are contractually obligated to cover AI21's legal fees and any resulting damages, which could far exceed what you paid for the service.
ConductAtlas has identified this type of provision across 287 platforms. See the full comparison.
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