Essential Terms of Service Content for an AI Consultancy
Last Updated: 29/Sep/2025
1. Acceptance of Terms
Purpose: Establishes the agreement between the user/client (“Client,” “You”) and your company (“Consultancy,” “We,” “Us”).
Key Points:
- Statement that by accessing or using the website or services, the user agrees to be bound by these Terms.
- Requirement that the user must be of legal age (e.g., 18) and have the authority to enter into the agreement.
- Statement that the Consultancy may modify the Terms and that continued use constitutes acceptance of the changes.
2. Description of Services
Purpose: Clearly defines what your consultancy offers
Key Points:
- General description of your AI consultancy services (e.g., strategic planning, model development, data analysis, implementation support, workshops).
- Clarification that specific details, scope, fees, and deliverables for each project will be outlined in a separate Statement of Work (SOW) or Master Services Agreement (MSA), and that the SOW/MSA will take precedence over these general website terms.
- Crucial AI-Specific Clause: Acknowledge the nature and limitations of AI (e.g., AI models are probabilistic, not deterministic; outputs may contain inaccuracies, biases, or “hallucinations”).
3. Client Obligations and Responsibilities
Purpose: Defines what the client must do and not do.
Key Points:
- Accurate Information: Requirement for the Client to provide accurate, complete, and timely information, data, and access needed for the Consultancy to perform the services.
- Lawful Use: Client must use the services and any resulting AI models/outputs in compliance with all applicable local, state, national, and international laws and regulations.
- Prohibited Uses: A list of activities that are strictly forbidden (e.g., illegal, harmful, harassing, or infringing on intellectual property rights).
4. Intellectual Property Rights (IP)
Purpose: The most critical section for an AI business—clarifies ownership of the core technology and the project deliverables.
Key Points:
- Consultancy IP: The Consultancy retains all rights, title, and interest in and to its own proprietary tools, pre-existing models, methodologies, algorithms, code, and frameworks (“Consultancy IP”). The Client receives a limited, non-exclusive license to use the Consultancy IP only as necessary to utilize the final deliverables.
- Client IP (Input Data): The Client retains all rights, title, and interest in their input data, confidential information, and any pre-existing client materials.
- Deliverables/Output: This must be clearly defined in your business model. Common approaches:
- Work-for-Hire: Consultancy assigns all rights in the final, custom-developed AI model/deliverables to the Client upon full payment.
- Licensed: Consultancy retains ownership of the underlying IP in the deliverables but grants the Client a perpetual, royalty-free license to use the final product for their internal business purposes.
- Third-Party AI Tools: Disclose if and how third-party AI services (e.g., OpenAI, Google Cloud AI) are used and ensure compliance with their respective IP and terms.
5. ConfidentialityPurpose: Protects the sensitive information of both parties.
- Key Points:
- Definition of “Confidential Information” (e.g., trade secrets, business plans, data, algorithms, pricing).
- Obligation of both parties to protect and not disclose the other party’s Confidential Information.
- Standard exceptions (e.g., information that is publicly known, required by law, or independently developed).
10. Contact Us
If you have any questions about this Privacy Policy, please contact us: 📧 Email: arshad@talpur.ai
📍 Address: Frankfurt Am Main, Germany