Using Artificial Intelligence in Software and App Development – Legal Questions
AI is often treated as “just another tool” in the engineering stack. Legal risk, however, does not arise from the mere use of AI—it arises from what ends up in production, how the product is marketed to customers, and what the company can prove if a problem occurs.
Key takeaways
Conclusion
Using artificial intelligence in software and app development brings speed and innovation, but it also raises disputed questions of authorship, code ownership, liability for errors, and data protection. In practice, it is essential to have clear contracts, processes, and AI usage rules in place so the issues do not surface only during claims, incidents, or investor due diligence.
FAQ – Most common legal questions on Using Artificial Intelligence in Software and App Development – Legal Questions
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Should AI usage in development be disclosed in the customer contract?
In most B2B cases, yes—especially if AI affects outputs, SLAs, or liability allocation. Clear disclosure helps prevent disputes. If you face a similar issue, contact ARROWS law firm at consultation@arws.cz. -
How can a company reduce the risk that AI output infringes third-party rights?
A combination of internal policies, license checks, code review, and contractual safeguards (including vendor indemnities) is key. If you face a similar issue, contact ARROWS law firm at consultation@arws.cz. -
Who is liable if an AI feature causes losses for a customer?
It depends on the contract structure, service description, liability caps, and quality controls. For critical systems, exposure can be material. If you face a similar issue, contact ARROWS law firm at consultation@arws.cz. -
Is it safe to input internal documents or code into AI tools?
Without provider safeguards and internal controls, it can expose trade secrets and personal data. Minimisation and vendor review are recommended. If you face a similar issue, contact ARROWS law firm at consultation@arws.cz. -
What most often complicates investments in software companies using AI?
Unclear IP ownership, missing license evidence, risky open-source use, and weak customer/vendor contracts. If you face a similar issue, contact ARROWS law firm at consultation@arws.cz. -
Does an internal AI policy make sense for smaller companies?
Yes—because it protects data and know-how, improves development discipline, and helps with larger customers. If you face a similar issue, contact ARROWS law firm at consultation@arws.cz.
About the author
Disclaimer:
The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.