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Contracting for foreign AI tools — what to check in the terms
Foreign tools are usually bought by accepting standard terms. Those terms contain a known set of clauses a Korean company needs to check.
What to check Standard vs enterprise What is negotiable
The short answer
It is easy to assume standard terms are non-negotiable, but on enterprise plans a good deal of them are. Knowing which is which saves time.
Before negotiating, though, read. Checking the items below surfaces most of the risk.
What to check in the terms
Standard terms versus an enterprise agreement
| Item | Standard (self-serve) | Enterprise |
|---|---|---|
| Training on your data | Often on by default | Can be excluded explicitly |
| Retention | Per vendor policy | Sometimes negotiable |
| SLA | Usually none | Can be requested |
| Liability cap | Limited to fees | Sometimes negotiable upward |
| Payment terms | Card, charged immediately | Invoiced terms and annual contracts |
| Security review material | Public documents only | Questionnaire responses and certificates |
What negotiation actually achieves
The three requests most often accepted are: written confirmation that your data is not used for training, completion of your security questionnaire, and payment term adjustments (invoiced, annual, local currency).
Changing governing law and jurisdiction is rarely accepted below large-enterprise scale. If that is a real requirement, contracting locally through a Korean reseller is the more realistic route.
Go into a negotiation with your requirements ranked. Demanding everything equally lengthens the process and blurs what actually mattered.
Frequently asked questions
Once we accept standard terms, is it irreversible?
You can frequently reset terms when moving to an enterprise plan. But conditions may not apply retroactively to data already submitted, so keep sensitive data out until the terms are settled.
What changes with a Korean reseller?
The contract is with a domestic entity, so governing law, jurisdiction and billing usually resolve to local terms. Confirm the scope, though — whether data terms still follow the original vendor’s policy.
How will we know if the terms change?
The notification method is in the terms — usually email or a site posting, which is easy to miss if the owner is away. Put a periodic re-check into your internal policy.
Is a free tier a contract?
It is a contract you accepted by using it. Free-tier data terms are often worse than paid, so read the clauses even at trial stage and keep sensitive data out.
Set your requirements
Put your requirements in writing first
The RFP generator produces a request document carrying your data and support requirements — usable directly for vendor comparison and negotiation.