Artificial Intelligence and Legal Risk: How Businesses Should Structure Contracts for AI Services

INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE.
Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed David C. Japha.

The David C. Japha Commentaries
On a recent Price of Business show, host Kevin Price interviewed David C. Japha of Levin Jacobson Japha, P.C., about how businesses can manage legal risk when using artificial intelligence tools and vendors.
They discussed how companies are rapidly integrating AI into operations—often without fully understanding the legal exposure that comes with relying on third-party AI systems. Japha explained that many businesses assume AI outputs are reliable or that liability rests with the AI provider, when in reality, responsibility is often unclear and frequently falls back on the business using the technology.
The conversation focused on how contracts—not technology—ultimately determine who bears the risk when AI systems produce inaccurate, incomplete, or harmful results. Japha emphasized that businesses must proactively structure agreements to address issues such as data integrity, output reliability, intellectual property ownership, and liability allocation before problems arise.
For more information, visit ljjlaw.com.
Today’s Focus: How businesses can structure contracts for AI-provided services to manage liability, reduce risk, and avoid costly disputes.
Over his more than three decades of practice, David Japha has earned a reputation for resolving difficult and complex matters, sometimes being the second or third lawyer to take on a case. David has tried many criminal and civil cases to conclusion and argued numerous appeals, post-conviction cases and cases involving mental health issues. He also currently represents clients in federal and state administrative matters, including ongoing matters before the Consumer Products Safety Commission. David got his start in litigation before leaving the University of Denver College of Law, where he tried his first DUI case in state court through a program called the student law office. He also negotiated settlements and argued his first administrative appeal before the Social Security Administration in the winter of 1984, before his law school graduation in May of that year. Soon after starting out, David shared office space with his current partners, Don Jacobson and Daniel Levin at Ptarmigan Place. There he learned law office management hanging out his shingle and doing evictions, collections and court-appointed federal criminal cases. And, it was there, in federal court, that David truly cut his teeth in criminal defense litigation, culminating in his appointment to the Criminal Justice Act committee (which oversaw the appointment of conflict counsel in federal court) by then-Chief Judge Richard Matsch. Over 30 years of practice has given David the opportunity to be involved in some amazing cases, including taking depositions in Katmandu, Nepal in a complex criminal case in 1991; representing a witness in the trial of Timothy McVeigh (where David was also a credentialed reporter for the Intermountain Jewish News); handling criminal matters in Nebraska, Kansas and California and appearing in Washington State. David has been an expert witness for the Colorado Supreme Court Office of Regulation Counsel in the area of attorney fees for court appointed counsel.
Learn more at https://www.ljjlaw.com/attorney-profiles/david-japha/.
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