You are not allowed to use Perplexity's tools to build your own AI product or to improve a rival AI system.
This analysis describes what Perplexity AI'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 restriction limits how developers and businesses can use Perplexity's platform, potentially affecting legitimate research or product development activities that involve AI.
Interpretive note: The clause does not define 'competing' precisely, creating ambiguity about scope for enterprise users, researchers, and developers with adjacent AI workflows.
Developers and enterprise users who interact with Perplexity's outputs as part of AI development workflows may find their use prohibited under this clause, which the terms state bars using the service to develop or improve a competing AI or machine learning model or service.
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"You may not use the Services to develop or improve a competing AI or machine learning model or service.— Excerpt from Perplexity AI's Perplexity Acceptable Use Policy
REGULATORY LANDSCAPE: This provision functions as a contractual competitive use restriction and does not directly implicate a specific consumer protection regulation. However, depending on how it is enforced, it may engage antitrust scrutiny under the FTC Act or DOJ Antitrust Division review if applied in a manner that forecloses competition. In the EU, similar restrictions may warrant review under competition law frameworks enforced by the European Commission. GOVERNANCE EXPOSURE: Medium. The clause is broadly worded and does not define 'competing' with precision, creating ambiguity about whether academic research, internal enterprise AI tools, or adjacent AI applications fall within scope. Enterprise procurement teams should flag this clause during vendor assessment. JURISDICTION FLAGS: The restriction applies globally as stated, but enforceability of such contractual competitive use restrictions varies by jurisdiction. Some EU member states and California may apply additional scrutiny to overly broad restraints in standard-form contracts. CONTRACT AND VENDOR IMPLICATIONS: Organizations using Perplexity via API or enterprise agreements should assess whether their internal AI development pipelines could be characterized as covered by this clause. The provision as drafted does not distinguish between commercial competitors and non-commercial internal tools, which may create ambiguity in B2B contexts. COMPLIANCE CONSIDERATIONS: Legal teams should document the specific use cases for which Perplexity is deployed and assess whether any use involves training, fine-tuning, or benchmarking internal AI models using Perplexity outputs. Contract review should flag this provision as a potential liability trigger.
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This restriction limits how developers and businesses can use Perplexity's platform, potentially affecting legitimate research or product development activities that involve AI.
Developers and enterprise users who interact with Perplexity's outputs as part of AI development workflows may find their use prohibited under this clause, which the terms state bars using the service to develop or improve a competing AI or machine learning model or service.
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