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Do contracts need updating to accommodate AI data collection
November 17,  2023
Do contracts need updating to accommodate AI data collection
            I have a quick question regarding data collection and the rapid rise of AI.  It seems that virtually every company is none considering the use of some sort of A.I. (if not already in use).   But to make the A.I. useful they obviously need lots and lots of data points.  More than they ever have in the past. 
            As our 3rd party services begin to collect this data in greater amounts to improve the services that we offer do we need to change our monitoring agreements to cover this?  I have the same question concerning the use of A.I. on this data at all, since it’s use is likely not in any of our agreements yet. 
            I would love to hear your thoughts and input so that we can all make sure we are protected. 
 Eric Widner, General Manager
LOUD Security Systems 
            Reflecting on the K&K Standard Agreements I believe you are raising excellent issues that need addressing.  The Standard Form Agreements do contain what I believe are the most up-to-date and comprehensive provisions to provide the best contractual protection available.  Therefore, as long as you stay within the broad confines of your contract performance you will be protected.  However, I don’t believe the Standard Form Agreements mention data collection beyond what is needed to respond to alarm signals or gather information necessary for you to perform your services, whether they are medical alert, access control, environmental monitoring, burg and fire monitoring, among others. 
            What alarm customers do not expect is that the alarm system is listening and accumulating data that is then used by others and AI.  I just completed renovation of a home in Florida, been here only a few days now and getting ready to head back to the office in New York.  I’ve “discovered” [because I had no idea] that I have Seri listening in, I think controlling the access control at the front door.  The TV has Alexa listening.  The Alula that controls the alarm system is also paying attention and I’m told will soon be able to control anything connected to the internet or wifi.  All of these devices are listening in all the time and collecting data. 
            The contracts can be updated to caution customers about data collection.  I think the extent of the collection and who the data is made available to, perhaps for what reasons, should be addressed in the contracts.  I can use some input from the experts, so email in your suggestions

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301