If your use of AI21's services causes someone to sue AI21, or results in legal claims or costs for the company, you are responsible for paying AI21's legal costs and any resulting damages.
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
This clause can expose individual users and enterprise customers to significant legal and financial liability if their use of AI21's platform generates third-party claims, including claims related to outputs produced by the AI itself.
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 content you generate using AI21's tools infringes a third party's intellectual property, violates applicable law, or otherwise causes harm, you could be required to compensate AI21 for any resulting legal costs or damages. This is particularly significant for users who publish or commercialize AI-generated content.
How other platforms handle this
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You agree that Your Content must comply with our Community Guidelines as updated from time to time. As Your Content is unique, you are responsible and liable for Your Content. You will indemnify, defend, release, and hold us harmless from any claims made in connection with Your Content.
You agree, to the extent permitted under applicable law, to indemnify, defend and hold harmless Tinder, our affiliates, and their and our respective officers, directors, agents, and employees from and against any and all complaints, demands, claims, damages, losses, costs, liabilities and expenses, ...
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"You agree to indemnify, defend, and hold harmless AI21 and its officers, directors, employees, and agents from and against any claims, liabilities, damages, losses, and expenses, including reasonable attorneys' fees, arising out of or in any way connected with your access to or use of the Services or your violation of these Terms.— Excerpt from AI21 Labs's AI21 Labs Terms of Use
(1) REGULATORY LANDSCAPE: Indemnification clauses are standard in commercial SaaS agreements but their scope and enforceability vary by jurisdiction. In the EU and UK, indemnification clauses in consumer contracts may be subject to fairness review under the Unfair Contract Terms Directive and Consumer Rights Act respectively. The allocation of responsibility for AI-generated outputs is an emerging area under the EU AI Act, which distinguishes between provider and deployer liability; this indemnification clause may create tension with that regulatory framework by shifting liability from AI21 as provider toward the user as deployer. (2) GOVERNANCE EXPOSURE: Medium to High for enterprise API customers who build consumer-facing applications on AI21's models. If an end user of a business customer's product is harmed by an AI-generated output, the indemnification chain could require the enterprise customer to defend AI21 against third-party claims arising from the enterprise's own deployment decisions. (3) JURISDICTION FLAGS: EU deployers under the EU AI Act may face their own regulatory obligations that create tension with the indemnification structure here. California and New York commercial law may limit the scope of indemnification in certain contexts, particularly where the party seeking indemnification contributed to the harm. Customers in regulated sectors (healthcare, financial services) should assess whether this clause conflicts with their own regulatory compliance obligations. (4) CONTRACT AND VENDOR IMPLICATIONS: Enterprise procurement teams should negotiate the scope of the indemnification clause, particularly to exclude claims arising from AI21's own model outputs, platform defects, or AI21's breach of its own policies. A mutual indemnification structure or a carve-out for AI-generated content liability is commercially reasonable and should be sought. The current language as stated is broad and unilateral. (5) COMPLIANCE CONSIDERATIONS: Legal teams should assess the indemnification risk in the context of the specific use case, particularly for applications involving high-risk AI outputs (medical, legal, financial advice, content generation). Downstream terms of service for enterprise customers' own end users should not create representations that conflict with their obligations under this indemnification clause.
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This clause can expose individual users and enterprise customers to significant legal and financial liability if their use of AI21's platform generates third-party claims, including claims related to outputs produced by the AI itself.
If content you generate using AI21's tools infringes a third party's intellectual property, violates applicable law, or otherwise causes harm, you could be required to compensate AI21 for any resulting legal costs or damages. This is particularly significant for users who publish or commercialize AI-generated content.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by AI21 Labs.