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The agreement assigns full responsibility for all decisions, advice, actions, and inactions based on AI-generated outputs to Customers and their Authorized Users, and requires Customers to evaluate outputs for accuracy and implement human oversight and safeguards for consequential decisions.
This analysis describes what Groq'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 provision establishes a contractual liability allocation under which Groq bears no responsibility for harms arising from Customer reliance on AI-generated outputs, including inaccurate outputs, and requires Customers to independently assess and mitigate risks for any consequential use case.
Under this clause, Customers and Authorized Users bear sole responsibility for the accuracy and consequences of AI-generated outputs used in any decision-making context. The agreement requires customers who use AI outputs for consequential decisions to evaluate risks, implement oversight, and apply use-case-specific safeguards.
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"Customer and its Authorized Users are responsible for all decisions made, advice given, actions taken, and failures to take action based on the use of the Cloud Services and AI Model Services. AI Model Services use artificial intelligence and machine learning models that generate outputs, which may be inaccurate. Outputs should be evaluated for accuracy and appropriateness. If you use the AI Model Services to make consequential decisions, you must evaluate the potential risks of your use case and implement appropriate human oversight, testing, and other use case-specific safeguards to mitigate such risks.Excerpt from Groq's Acceptable Use Policy
(1) REGULATORY LANDSCAPE: This liability allocation engages the EU AI Act's operator responsibility provisions, which assign obligations to deployers of high-risk AI systems including risk management, human oversight, and incident reporting. The FTC Act's prohibition on unfair or deceptive practices may interact with this clause if AI-generated outputs are used in consumer-facing contexts without adequate accuracy disclosures. GDPR accountability principles require data controllers to be responsible for compliance regardless of contractual liability shifts. (2) GOVERNANCE EXPOSURE: High. The blanket assignment of liability to Customers for all decisions based on AI outputs, including outputs the policy itself acknowledges may be inaccurate, creates significant legal exposure for enterprise customers in regulated industries. Legal teams should assess whether this liability allocation is enforceable under applicable law in their operating jurisdiction, as some jurisdictions limit the extent to which liability for defective AI outputs can be fully shifted to downstream users. (3) JURISDICTION FLAGS: EU operators of high-risk AI systems retain non-waivable obligations under the EU AI Act regardless of contractual liability shifts, creating a potential tension between this provision and regulatory requirements. In the US, liability for AI-generated misinformation or harmful outputs in professional contexts such as medical advice or legal guidance may engage professional liability frameworks that exist independently of contractual terms. (4) CONTRACT AND VENDOR IMPLICATIONS: This provision functions as a limitation of liability and warranty disclaimer for Groq. Enterprise procurement teams should assess whether this allocation is consistent with their organization's risk tolerance and whether downstream indemnification obligations in their own customer agreements are compatible with the liability Groq assigns upward under this clause. (5) COMPLIANCE CONSIDERATIONS: Compliance teams should document risk assessments and oversight mechanisms for each consequential AI use case as required by this provision. Records of human oversight implementation and output evaluation procedures support both contractual compliance and regulatory defensibility under the EU AI Act and equivalent frameworks.
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This provision establishes a contractual liability allocation under which Groq bears no responsibility for harms arising from Customer reliance on AI-generated outputs, including inaccurate outputs, and requires Customers to independently assess and mitigate risks for any consequential use case.
Under this clause, Customers and Authorized Users bear sole responsibility for the accuracy and consequences of AI-generated outputs used in any decision-making context. The agreement requires customers who use AI outputs for consequential decisions to evaluate risks, implement oversight, and apply use-case-specific safeguards.
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