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 →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'.
View full 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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This policy applies to you and anyone using the Services on your behalf, including your end users. You are responsible for ensuring that your use of the Services, and the use of the Services by others on your behalf, complies with this Policy.
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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 AI21 Labs Terms of Use
(1) REGULATORY FRAMEWORK: Indemnification clauses are governed by state contract law. In EU consumer contracts, broad indemnification clauses may be unenforceable as unfair terms under Directive 93/13/EEC. UK Consumer Rights Act 2015 similarly restricts indemnification obligations imposed on consumers. For B2B contracts, such clauses are generally enforceable but subject to reasonableness requirements in some jurisdictions (UK Unfair Contract Terms Act 1977). (2)
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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 83 platforms. See the full comparison.
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