The “market” for AI contracting terms continues to evolve, and whilst there is no standardised approach (as much will depend on the use cases, technical features and commercial terms), a number of attempts have been made to put forward contracting models. One of the latest being from the EU’s Community of Practice on Public Procurement of AI, which published an updated version of its non-binding EU AI Model Contractual Clauses (“MCC-AI”) on March 5, 2025. The MCC-AI are template contractual clauses intended to be used by public organizations that procure AI systems developed by external suppliers.  An initial draft had been published in September 2023.  This latest version has been updated to align with the EU AI Act, which entered into force on August 1, 2024 but whose terms apply gradually in a staggered manner.  Two templates are available: one for public procurement of “high-risk” AI systems, and another for non-high-risk AI systems. A commentary, which provides guidance on how to use the MCC-AI, is also available.

In the EU, Communities of Practice are comprised of stakeholders who gather to learn and share best practice on specific topics – in this case, public procurement of AI – as they deal with them regularly.  Templates and guidance published by the Community of Practice on Public Procurement of AI are neither binding nor officially endorsed by the European Commission, but the commentary to the MCC-AI state that the European Commission “supported” the Community of Practice on Public Procurement of AI.    

The MCC-AI consists of two templates:

• The MCC-AI-High-Risk template is intended for the procurement of AI systems classified as “high-risk” under the AI Act.  It is based on the requirements and obligations for high-risk AI systems set out in Chapter III of the AI Act.

• The MCC-AI-Light template is intended for the procurement of AI systems that are not classified as high-risk, but may still pose risks to health, safety, or fundamental rights.  It can also be used for the procurement of other algorithmic systems that do not fall within the definition of AI systems under the AI Act but may pose similar risks.  Like the High-Risk template, MCC-AI-Light is based on the requirements in Chapter III of the AI Act.

The commentary to the MCC-AI recommends selecting and applying provisions from the template as appropriate to the specific situation, and so assumes that parties understand the use case under which their AI falls.  Although the MCC-AI were developed for use by public organizations, the commentary suggests that some clauses may also serve as a useful reference for private companies entering into contracts with external suppliers for AI systems.

Finally, the Community of Practice on Public Procurement of AI encourages public authorities that wish to use MCC-AI to report their use to the Public Sector Tech Watch.  Over 900 examples of the use of AI in the public sector have already been reported on this resource.

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The Covington team regularly advises on structuring commercial contracts in compliance with the EU AI Act.  This is an ever-evolving area, and we will continue to monitor developments in this area.  We are happy to answer any questions you may have on this topic.