AI Liability Allocation in Enterprise Software Agreements: Warranties, Indemnities, and Termination Under Indian Law

Introduction : AI is now increasingly becoming part of the core of enterprise software products, from generative AI agents integrated into productivity tools to automatic credit scoring within lending platforms. Unlike a traditional software bug, an AI model could act exactly as intended and still produce a wrong, biased or infringing output because it is a probabilistic technology and not a deterministic one. This presents liability issues that standard software licence templates are not...