The “market” for AI contracting phrases continues to evolve, and while there isn’t any standardised strategy (as a lot will rely upon the use circumstances, technical options and business phrases), quite a few makes an attempt have been made to place ahead contracting fashions. One of many newest being from the EU’s Neighborhood of Apply on Public Procurement of AI, which revealed an up to date model of its non-binding EU AI Mannequin Contractual Clauses (“MCC-AI”) on March 5, 2025. The MCC-AI are template contractual clauses meant for use by public organizations that procure AI techniques developed by exterior suppliers. An preliminary draft had been revealed in September 2023. This newest model has been up to date to align with the EU AI Act, which entered into pressure on August 1, 2024 however whose phrases apply progressively in a staggered method. Two templates can be found: one for public procurement of “high-risk” AI techniques, and one other for non-high-risk AI techniques. A commentary, which supplies steerage on the way to use the MCC-AI, can also be obtainable.
Within the EU, Communities of Apply are comprised of stakeholders who collect to study and share greatest observe on particular matters – on this case, public procurement of AI – as they cope with them usually. Templates and steerage revealed by the Neighborhood of Apply on Public Procurement of AI are neither binding nor formally endorsed by the European Fee, however the commentary to the MCC-AI state that the European Fee “supported” the Neighborhood of Apply on Public Procurement of AI.
The MCC-AI consists of two templates:
- The MCC-AI-Excessive-Threat template is meant for the procurement of AI techniques labeled as “high-risk” beneath the AI Act. It’s based mostly on the necessities and obligations for high-risk AI techniques set out in Chapter III of the AI Act.
- The MCC-AI-Mild template is meant for the procurement of AI techniques that aren’t labeled as high-risk, however should still pose dangers to well being, security, or elementary rights. It may also be used for the procurement of different algorithmic techniques that don’t fall throughout the definition of AI techniques beneath the AI Act however might pose related dangers. Just like the Excessive-Threat template, MCC-AI-Mild relies on the necessities in Chapter III of the AI Act.
The commentary to the MCC-AI recommends deciding on and making use of provisions from the template as applicable to the precise state of affairs, and so assumes that events perceive the use case beneath which their AI falls. Though the MCC-AI have been developed to be used by public organizations, the commentary means that some clauses may additionally function a helpful reference for personal corporations getting into into contracts with exterior suppliers for AI techniques.
Lastly, the Neighborhood of Apply on Public Procurement of AI encourages public authorities that want to use MCC-AI to report their use to the Public Sector Tech Watch. Over 900 examples of using AI within the public sector have already been reported on this useful resource.
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The Covington staff usually advises on structuring business contracts in compliance with the EU AI Act. That is an ever-evolving space, and we’ll proceed to watch developments on this space. We’re blissful to reply any questions you could have on this matter.
