XData AI Terms

1. INTRODUCTION

1.1. Parties

These XData AI Terms ("AI Terms") are entered into between the customer, client, user,
subscriber, organization, or legal entity using XData AI features ("Customer", "you", or
"your") and:

[XDATA LEGAL ENTITY NAME]
[XDATA REGISTERED ADDRESS]
Company registration number: [INSERT]
VAT ID: [INSERT]
Email: [INSERT LEGAL EMAIL]
Website: https://xdata.si

("XData", "we", "us", or "our").

1.2. Incorporation into Customer Agreement

These AI Terms are incorporated into and form part of Customer's applicable agreement with
XData, including any Terms of Service, Software and AI Services Agreement, Master Services
Agreement, Order Form, Proposal, Statement of Work, Data Processing Addendum, or online
subscription terms (the "Customer Agreement").

1.3. Order of Precedence

If these AI Terms conflict with the Customer Agreement regarding use of AI Services, these
AI Terms will prevail to the extent of the conflict, unless a signed enterprise agreement,
Order Form, or Statement of Work expressly states otherwise.

If these AI Terms conflict with the Data Processing Addendum regarding processing of Personal
Data, the Data Processing Addendum will prevail for data protection matters.

1.4. Scope

These AI Terms govern Customer's access to and use of AI-enabled features, AI systems,
AI models, AI agents, AI workflows, AI-generated outputs, AI credits, AI usage units,
AI APIs, retrieval systems, embedding systems, model routing, prompt processing, AI search,
RAG systems, knowledge systems, automation systems, and other artificial intelligence or
machine learning functionality made available by XData (collectively, "AI Services").

1.5. Enterprise and Custom AI Services

Where XData provides custom AI advisory, implementation, managed infrastructure, private
deployment, customer-hosted AI, sovereign AI architecture, AI governance, AI education,
or professional services, additional or different terms may apply in the relevant Order,
Proposal, Statement of Work, or Enterprise Agreement.

2. ACCESS TO AI SERVICES

2.1. Access Right

Subject to the Customer Agreement, these AI Terms, and the applicable Order, XData grants
Customer a limited, non-exclusive, non-transferable, non-sublicensable, revocable right to
access and use the AI Services for Customer's permitted internal business purposes.

2.2. Authorized Users

Customer may allow Authorized Users to use AI Services through Customer's account or deployment.
Customer is responsible for all use of AI Services by its Authorized Users.

2.3. Acceptable Use

Customer must use AI Services in accordance with:
(a) these AI Terms;
(b) the Customer Agreement;
(c) XData Acceptable Use Policy;
(d) XData Privacy Policy;
(e) XData Data Processing Addendum, where applicable;
(f) applicable laws and regulations;
(g) applicable third-party AI provider usage policies where relevant.

2.4. Availability

AI Services may depend on third-party model providers, cloud providers, API providers,
open-source models, customer infrastructure, network connectivity, compute capacity, rate
limits, or service availability. XData does not guarantee uninterrupted or error-free access
unless expressly stated in the applicable Order or service level agreement.

2.5. Beta and Experimental AI Features

AI Services made available as beta, preview, early access, experimental, demo, prototype,
or proof-of-concept features may be changed, limited, suspended, or withdrawn at any time.
They may contain errors, produce unexpected outputs, or be unsuitable for production use
unless XData expressly agrees otherwise in writing.

3. INPUT, OUTPUT, AND OWNERSHIP

3.1. Input

Customer may provide or make available prompts, instructions, messages, files, documents,
images, audio, video, code, datasets, database records, knowledge bases, configuration,
metadata, embeddings, connected sources, integrations, or other content to AI Services
("Input").

3.2. Output

AI Services may generate, return, summarize, classify, transform, extract, recommend, search,
retrieve, route, draft, translate, analyze, code, configure, or otherwise produce text,
images, data, documents, code, configuration, metadata, recommendations, decisions, or other
materials based on Input ("Output").

3.3. Customer Content

Input and Output are Customer Content, subject to the Customer Agreement, these AI Terms,
third-party rights, open-source licenses, and applicable law.

3.4. Customer Ownership

As between Customer and XData, Customer retains all right, title, and interest in Customer's
Input. To the extent permitted by applicable law and subject to the Customer Agreement,
Customer owns or may use Output generated for Customer through the AI Services.

3.5. XData Ownership

XData retains all right, title, and interest in the AI Services, XData software, systems,
interfaces, source code, prompts, workflows, model routing logic, orchestration logic,
templates, methodologies, architecture, documentation, evaluation frameworks, monitoring
systems, improvements, know-how, and XData intellectual property.

3.6. No Transfer of XData Technology

Customer does not receive any ownership rights in XData technology, AI Services, models,
software, prompts, templates, workflows, system instructions, orchestration logic, or other
XData intellectual property unless expressly agreed in writing.

3.7. Similar Outputs

Due to the nature of AI systems, Output may be the same as or similar to output generated for
other customers or users. XData does not guarantee that Output is unique, exclusive,
registrable, protectable, non-infringing, or suitable for exclusive commercial use.

3.8. Third-Party Rights

Customer is responsible for reviewing Output for potential third-party rights, including
copyright, trademark, database rights, personality rights, privacy rights, open-source license
obligations, and confidentiality obligations before using or publishing Output.

4. USE OF CUSTOMER CONTENT FOR TRAINING

4.1. No Training by Default

Unless expressly agreed in writing or enabled by Customer through a clear administrative
setting, XData will not intentionally use Customer Content to train foundation models,
general-purpose AI models, or AI models made generally available to other customers.

4.2. Optional Training or Improvement Settings

If XData provides a setting allowing Customer to permit use of Customer Content for model
training or service improvement, Customer may enable or disable that setting according to
the available controls. Customer is responsible for ensuring that any such setting is enabled
only where Customer has a lawful basis and appropriate authority.

4.3. Effect of Disabling Training

If Customer disables an optional content training setting, new Customer Content and new edits
created after the setting is disabled will not be intentionally used by XData for training
foundation models or general-purpose AI models made available to other customers, unless
otherwise required by law or expressly agreed in writing.

4.4. Operational Use

The restrictions on training do not prevent XData from using Customer Content, Usage Data,
logs, telemetry, system metadata, error reports, security events, performance data, or
de-identified and aggregated data as necessary to:
(a) provide AI Services;
(b) operate and secure the Services;
(c) route requests to models;
(d) debug and troubleshoot errors;
(e) detect abuse and security threats;
(f) monitor reliability and performance;
(g) comply with law;
(h) improve non-customer-specific service quality using aggregated or de-identified data.

4.5. Third-Party Model Providers

Where AI Services use third-party model providers, their data handling practices may apply as
described in the Customer Agreement, DPA, Subprocessor List, Service description, or applicable
provider terms. XData will use commercially reasonable efforts to configure third-party AI
providers so that Customer Content is not used for provider-side training where such controls
are available and required by the applicable Order.

5. CONTROLLING AI SETTINGS

5.1. Administrative Settings

XData may provide administrative settings to manage AI functionality, such as:
(a) enabling or disabling AI features;
(b) selecting model providers;
(c) selecting deployment region;
(d) enabling or disabling external model calls;
(e) enabling or disabling logging;
(f) setting usage limits;
(g) setting budget limits;
(h) enabling or disabling AI training or improvement settings;
(i) managing knowledge bases and connected sources;
(j) controlling user access.

5.2. Customer Responsibility

Customer is responsible for configuring AI settings appropriately for its organization,
users, risk profile, data categories, regulatory obligations, and intended use cases.

5.3. Administrative Authority

Customer's administrators may change AI settings on behalf of Customer. Customer is responsible
for actions taken by administrators and Authorized Users.

5.4. Settings Availability

Available AI settings may vary by product, plan, deployment type, region, provider, and
technical architecture. Some settings may not be available for all AI Services.

6. AI LIMITATIONS

6.1. Nature of AI Output

Output is generated by artificial intelligence, machine learning, retrieval systems,
automation workflows, or statistical models. Output may be inaccurate, incomplete, outdated,
biased, unsafe, misleading, offensive, or unsuitable for Customer's intended use.

6.2. No Verification by XData

Unless expressly agreed in writing, XData does not verify Output for accuracy, completeness,
quality, legality, reliability, non-infringement, safety, or suitability.

6.3. No Warranty for Output

XData makes no warranty or guarantee regarding Output, including:
(a) accuracy;
(b) completeness;
(c) reliability;
(d) originality;
(e) uniqueness;
(f) non-infringement;
(g) legality;
(h) suitability for a particular purpose;
(i) compliance with Customer's policies;
(j) compliance with industry-specific regulation.

6.4. Human Review

Customer is responsible for evaluating Output before relying on it, publishing it, sharing it,
using it in production, using it in customer-facing contexts, or making decisions based on it.
Customer should apply appropriate human review, professional review, testing, validation,
and approval processes.

6.5. No Professional Advice

AI Services do not provide legal, medical, financial, tax, employment, insurance, investment,
cybersecurity certification, regulatory, or other professional advice unless expressly agreed
in writing and supported by qualified professionals. Customer must not rely on AI Output as
professional advice without qualified human review.

6.6. High-Impact Decisions

Customer must not use AI Services to make fully automated decisions that produce legal,
financial, employment, educational, housing, healthcare, insurance, credit, migration,
law enforcement, or similarly significant effects on individuals without appropriate legal
basis, human oversight, risk management, documentation, and compliance controls.

6.7. Regulated and High-Risk AI

Customer must not use AI Services for high-risk, safety-critical, regulated, prohibited,
or restricted AI use cases unless such use is expressly agreed in writing and supported by
appropriate technical, organizational, legal, governance, human oversight, data protection,
and risk management controls.

6.8. Customer Evaluation

Customer is responsible for determining whether AI Services and Outputs are suitable for
Customer's use case, sector, risk profile, data categories, regulatory obligations, and
business requirements.

7. AI ACCEPTABLE USE RULES

7.1. Prohibited Uses

Customer must not use AI Services to:
(a) violate applicable law;
(b) infringe intellectual property, privacy, publicity, confidentiality, or other rights;
(c) create or distribute malware, phishing, credential theft, exploit instructions, or
    cyber abuse;
(d) generate fraudulent, deceptive, impersonating, defamatory, harassing, hateful, or abusive
    content;
(e) manipulate, deceive, or exploit individuals;
(f) create unlawful surveillance, social scoring, biometric identification, or discriminatory
    systems;
(g) process regulated, sensitive, or special categories of data without lawful basis and
    appropriate safeguards;
(h) bypass security, safety, usage, budget, or access controls;
(i) generate spam, scams, fake reviews, fraudulent communications, or misleading claims;
(j) violate export control or sanctions laws;
(k) use AI Services for unlawful weapons, harmful substances, or other dangerous activities;
(l) intentionally overload or abuse AI Services or model providers.

7.2. Sensitive Data

Customer must not submit Special Categories of Personal Data, children's data, health data,
criminal offence data, biometric data, trade secrets, regulated client data, classified data,
payment card data, government identifiers, or other sensitive data unless the applicable
Customer Agreement expressly permits such processing and appropriate safeguards are in place.

7.3. Customer Policies

Customer is responsible for ensuring that its use of AI Services complies with Customer's
own internal policies, industry standards, contractual obligations, and regulatory requirements.

7.4. Suspension

XData may suspend or restrict AI Services if XData reasonably believes Customer's use violates
these AI Terms, creates security or legal risk, violates third-party provider policies,
generates excessive costs, or may harm XData, other customers, third parties, or the public.

8. AI CREDITS, USAGE UNITS, AND BILLING

8.1. AI Usage Units

XData may measure AI usage using credits, tokens, requests, seats, compute time, storage,
index size, embeddings, bandwidth, model calls, agent runs, automation runs, or other usage
units ("AI Usage Units").

8.2. Included Usage

Some plans may include a defined amount of AI Usage Units. Included usage may be assigned to
individual users, pooled across an organization, limited by product, limited by time period,
or limited by specific AI features.

8.3. AI Usage Subscription

Customer may purchase an AI usage subscription that provides additional AI Usage Units during
the applicable subscription period. Unless otherwise stated in the applicable Order, AI Usage
Units refresh at the start of each billing period and do not roll over.

8.4. Pay-As-You-Go Usage

If Customer enables or agrees to pay-as-you-go AI usage, Customer is responsible for AI Usage
Units consumed by Customer and its Authorized Users. Pay-as-you-go charges may be billed in
arrears on a monthly, quarterly, or other basis stated in the applicable Order.

8.5. Usage Order

Unless otherwise stated in the applicable Order, AI Usage Units may be consumed in the
following order:
(a) included user-specific usage;
(b) included organization-level usage;
(c) prepaid AI usage subscription;
(d) pay-as-you-go usage.

8.6. Budget Controls

Where available, Customer may configure budgets, caps, alerts, or limits for AI usage.
Customer remains responsible for usage incurred before limits take effect, for usage allowed
by administrators, and for usage caused by Customer integrations or Authorized Users.

8.7. Pricing Changes

XData may change AI usage pricing prospectively. For paid recurring subscriptions, XData will
use reasonable efforts to provide advance notice of material AI pricing changes before they
apply to existing subscriptions, unless changes are caused by third-party provider pricing,
urgent operational requirements, legal changes, or abuse prevention.

8.8. Expiration

Unless otherwise stated in the applicable Order, AI Usage Units:
(a) do not represent legal tender, currency, stored value, or electronic money;
(b) are not redeemable for cash;
(c) are not transferable;
(d) may be used only for the applicable AI Services;
(e) expire at the end of the applicable billing or usage period;
(f) do not roll over.

8.9. Refunds

Unless otherwise stated in the applicable Order or required by law, unused AI Usage Units are
not refundable. If Customer is entitled to a refund for an AI usage subscription, the refund
will be based on the unused time remaining in the subscription term, not on unused AI Usage
Units.

8.10. Third-Party Costs

AI Services may generate costs from third-party model providers, cloud providers, vector
databases, search systems, storage, compute, APIs, and other infrastructure. Customer is
responsible for such costs where stated in the applicable Order or where incurred through
Customer's usage, settings, integrations, or instructions.

9. DATA PROTECTION AND PRIVACY

9.1. Personal Data in AI Services

If Customer submits Personal Data to AI Services, XData will process such Personal Data in
accordance with the applicable Data Processing Addendum where XData acts as Processor or
Sub-processor.

9.2. Customer Responsibilities

Customer is responsible for:
(a) determining whether Personal Data may be used with AI Services;
(b) establishing a lawful basis for processing;
(c) providing notices to Data Subjects;
(d) obtaining consents where required;
(e) responding to Data Subject requests;
(f) conducting data protection impact assessments where required;
(g) implementing human oversight where required;
(h) ensuring that AI usage complies with GDPR, the EU AI Act, and other applicable laws.

9.3. Data Minimization

Customer should avoid submitting unnecessary Personal Data to AI Services and should apply
data minimization, pseudonymization, anonymization, redaction, access controls, and retention
limits where appropriate.

9.4. AI Logs

AI Services may create logs containing prompts, outputs, metadata, usage information, model
routing information, errors, safety events, and security events. Such logs may be used to
provide, secure, troubleshoot, monitor, and improve the Services, subject to the Customer
Agreement, DPA, and applicable law.

9.5. Data Location

Unless expressly stated in the applicable Order, XData does not guarantee that AI processing
will occur exclusively in the EU/EEA. EU-only, Slovenia-only, customer-hosted, private cloud,
dedicated, sovereign, or restricted-provider processing must be expressly agreed in the
applicable Order.

10. THIRD-PARTY AI PROVIDERS AND OPEN-SOURCE MODELS

10.1. Third-Party Providers

AI Services may use third-party AI model providers, cloud infrastructure providers, API
providers, search providers, analytics providers, monitoring providers, open-source models,
or other service providers.

10.2. Provider Terms

Customer acknowledges that third-party providers may impose their own terms, usage policies,
technical limits, safety policies, rate limits, data handling terms, and availability
constraints.

10.3. Model Changes

XData may change, replace, route, upgrade, downgrade, or remove AI models or providers used
to deliver AI Services, provided that such changes do not materially reduce contracted core
functionality during the applicable term, unless required for security, compliance, provider
availability, cost control, or abuse prevention.

10.4. Open-Source Models

Where AI Services use open-source models or open-source components, such models and components
may be subject to their applicable open-source or model licenses. Customer is responsible for
complying with any license obligations that apply to Customer's use of delivered models,
weights, code, or components, if such materials are provided to Customer.

10.5. Customer-Provided Models

If Customer provides or selects models, APIs, keys, infrastructure, or providers, Customer is
responsible for the legality, security, licensing, cost, availability, and configuration of
those models, APIs, keys, infrastructure, or providers.

11. AI GOVERNANCE AND EU AI ACT

11.1. Role Allocation

The parties should identify in the applicable Order whether XData acts as a provider,
deployer, importer, distributor, product manufacturer, authorized representative, or other
role under the EU AI Act or other applicable AI laws. Unless expressly agreed in writing,
Customer is responsible for deployment decisions, intended use, end-user notices, human
oversight, risk classification, and regulatory compliance relating to Customer's use of AI
Services.

11.2. Intended Use

Customer must use AI Services only for the intended use described in the applicable Order,
documentation, or Service description. Customer must not materially modify intended use or
deploy AI Services in a higher-risk context without prior written agreement.

11.3. Prohibited AI Practices

Customer must not use AI Services for prohibited AI practices under applicable law, including
unlawful manipulation, exploitation of vulnerabilities, social scoring, certain biometric
identification or categorization uses, or other prohibited practices.

11.4. High-Risk AI Systems

Customer must not use AI Services as part of a high-risk AI system unless:
(a) the applicable Order expressly permits such use;
(b) the parties agree role allocation;
(c) required risk management, data governance, technical documentation, logging, transparency,
    human oversight, accuracy, robustness, cybersecurity, monitoring, and conformity assessment
    obligations are addressed;
(d) appropriate legal review has been completed.

11.5. Documentation

XData may provide available technical, security, and data flow documentation reasonably needed
for Customer's AI governance obligations, subject to confidentiality, security, trade secret,
and third-party restrictions.

11.6. Monitoring and Incident Reporting

Customer is responsible for monitoring its deployment and use of AI Services and for reporting
serious incidents or regulatory issues where Customer is legally required to do so, unless
otherwise agreed in writing.

12. INDEMNITY, DISCLAIMERS, AND LIMITATION OF LIABILITY

12.1. Customer Responsibility

Customer is responsible for:
(a) Input;
(b) use of Output;
(c) Customer's AI workflows;
(d) Customer's deployment of AI Services;
(e) Customer's decisions based on AI Services;
(f) Customer's legal and regulatory compliance;
(g) Customer's use of third-party models, systems, or integrations.

12.2. Disclaimers

AI Services and Output are provided subject to the disclaimers in the Customer Agreement and
these AI Terms. To the maximum extent permitted by law, XData disclaims all warranties relating
to AI Output, including accuracy, reliability, completeness, originality, non-infringement,
fitness for purpose, and suitability for regulated or high-impact use.

12.3. Limitation of Liability

XData's liability for AI Services and Output is limited as set out in the Customer Agreement.
If the Customer Agreement does not contain a liability cap, XData's total aggregate liability
arising out of or relating to AI Services will not exceed the greater of:
(a) EUR 100; or
(b) the fees paid by Customer to XData for the affected AI Services during the 12 months before
    the event giving rise to liability.

12.4. No Liability for Customer Use of Output

To the maximum extent permitted by law, XData will not be liable for Customer's use of Output,
Customer's failure to review Output, Customer's decisions based on Output, or errors,
omissions, inaccuracies, or unsuitable content in Output.

13. CHANGES TO AI TERMS

13.1. Updates

XData may update these AI Terms from time to time in the same manner that XData may update
the Customer Agreement.

13.2. Notice of Material Changes

For material changes affecting paid AI Services, XData will use reasonable efforts to provide
advance notice before the changes take effect, unless changes are required for legal,
security, provider, operational, or abuse-prevention reasons.

13.3. Continued Use

Customer's continued use of AI Services after updated AI Terms take effect constitutes
acceptance of the updated AI Terms.

14. MISCELLANEOUS

14.1. Definitions from Customer Agreement

Capitalized terms used but not defined in these AI Terms have the meaning given in the
Customer Agreement.

14.2. Suspension for Provider or Legal Reasons

XData may suspend, restrict, or modify AI Services if required by law, third-party provider
terms, model provider availability, security concerns, abuse prevention, or risk management.

14.3. No Waiver

Failure to enforce any provision of these AI Terms is not a waiver of that provision.

14.4. Severability

If any provision of these AI Terms is invalid or unenforceable, the remaining provisions will
remain in effect, and the invalid provision will be modified to the minimum extent necessary
to make it valid and enforceable.

14.5. Survival

Sections concerning Customer Content, training, AI limitations, ownership, data protection,
billing obligations, third-party providers, AI governance, disclaimers, limitation of liability,
and miscellaneous provisions survive termination of AI Services.

15. DEFINITIONS

15.1. "AI Services" has the meaning given in Section 1.4.

15.2. "AI Usage Units" has the meaning given in Section 8.1.

15.3. "Authorized User" means an employee, contractor, administrator, agent, or other person
authorized by Customer to access or use the AI Services.

15.4. "Customer Agreement" has the meaning given in Section 1.2.

15.5. "Customer Content" means Input, Output, and other content, data, files, documents,
prompts, messages, code, configurations, knowledge bases, embeddings, and materials submitted
to, generated through, or processed by the AI Services.

15.6. "Input" has the meaning given in Section 3.1.

15.7. "Output" has the meaning given in Section 3.2.

15.8. "Personal Data" has the meaning given in the Data Processing Addendum or applicable
Data Protection Law.

15.9. "Special Categories of Personal Data" has the meaning given in the Data Processing
Addendum or applicable Data Protection Law.