AI Licenses: A Rundown of Widely Used AI Licenses [2024]

Artificial Intelligence (AI) is revolutionizing industries at a rapid pace, pushing the boundaries of technological capabilities. Open-source models and tools have become more robust than ever, with machine learning teams frequently incorporating them into business processes. However, it is essential to have a comprehensive understanding of the requirements, limitations, and costs associated with AI licensing to ensure compliance with license guidelines.

AI licensing goes beyond a mere legal process; it governs a critical aspect of how AI technologies are utilized, distributed, and modified. The choice of AI license can influence the integration, sharing, or commercialization of AI models. Therefore, it serves as a fundamental tool for developers, researchers, and businesses to navigate the legal complexities of AI systems.

In this article, we provide an analysis of various AI licenses by comparing their terms, use cases, and implications to assist in making informed decisions. For the sake of brevity, a table has been included to facilitate easy comparison of licenses.

Types of Licenses in AI

AI licensing is not a one-size-fits-all approach. The choice of licenses varies based on the nature of the AI product, intended use, and the desired level of openness or restriction. Here are some common categories of AI licenses:

Open Source: Licenses that allow for the modification and distribution of software, such as MIT, Apache, GPL, and BSD.
Proprietary License: Software licenses where the software remains the property of the licensor, like Microsoft, Google Cloud AI, NVIDIA AI License, and OpenAI API License.
Creative Commons License: Licenses that enable creators to specify terms of use for their works, such as CC BY, CC BY-SA, CC BY-ND, CC BY-NC, CC BY-NC-ND, and CC BY-NC-SA.
Data-Centric Licenses: Licenses specifically designed for datasets and data usage, like Open Data Commons, ODbL, PDDL, and DUA.
AI-Model Specific Licenses: Licenses tailored for AI models, focusing on the use and distribution of trained models, such as RAIL.
Custom Licenses: Licenses crafted for unique project or organizational requirements, usually specified in custom agreements.

Open Source AI License

Open-source licenses have been integral to the software development community for decades, allowing free access, modification, and distribution of source code. Popular open-source licenses in AI include:

MIT License: A simple and permissive license suitable for driving wide adoption and innovation in AI projects.
Apache License 2.0: Balances permissiveness with protection by providing strong patent rights and requiring attribution and notice of modifications.
GNU General Public License (GPL): A copyleft license that ensures derivative works remain open-source, ideal for full open-source AI projects.
BSD License: Similar to the MIT License, but with additional clauses to protect contributors’ names while promoting derivatives.

Proprietary Licenses

AI proprietary licenses are more restrictive than open-source licenses, providing users with limited rights as per the terms defined by the owner or developer. Some examples of proprietary licenses in AI include Microsoft End User License Agreement (EULA), Google Cloud AI Platform Terms of Service, NVIDIA AI Enterprise License Agreement, and OpenAI API License.

Creative Commons Licenses

Creative Commons licenses offer varying levels of permission for use, modification, and distribution of AI-related work. Common Creative Commons licenses used in AI include CC BY, CC BY-SA, CC BY-ND, CC BY-NC, CC BY-NC-SA, and CC BY-NC-ND.

Data-Centric Licenses

Data-centric licenses are essential for controlling the modification, distribution, and use of datasets in AI development. Examples of data-centric licenses include Open Data Commons licenses like ODbL, Attribution License, and PDDL, suitable for public data projects and AI research collaborations.

AI Model-Specific Licenses

AI model-specific licenses govern the use, distribution, modification, and deployment of AI models while emphasizing responsible and ethical usage. The Responsible AI License (RAIL) is an example of an AI model-specific license that includes ethical aspects in licensing terms to prevent misuse and promote ethical AI practices.

Custom Licenses

Custom licenses are tailored for specific project or organizational needs, offering flexibility in defining terms and conditions. Organizations with unique licensing requirements can benefit from custom licenses that combine elements of open source, proprietary, and ethical licensing frameworks.

Selecting the Right AI License for Your Project

Choosing the right AI license is a critical decision that depends on the nature of your AI project, goals for distribution and commercialization, and legal or ethical considerations. When selecting an AI license, consider the level of control you want to maintain, legal and ethical implications, and consult with attorneys specializing in licensing AI projects.

Conclusion

Licensing plays a crucial role in the development and deployment of AI technologies. Understanding the different types of AI licenses available and selecting the right one for your project is essential for ensuring legal compliance, protection of intellectual property, and fostering responsible AI practices. By choosing the appropriate AI license, developers, researchers, and businesses can navigate the legal complexities of AI systems and promote innovation while maintaining ethical standards.