🤖AI Risk Disclosure

1. AI Features Overview

AdaptiveShop may use AI technology to provide features including, but not limited to:

• Product Selection: Choosing which products to show on dynamic links or experiences
• Content Generation: Creating product titles, descriptions, and marketing copy
• Recommendations: Suggesting products, alternatives, and related items
• Merchandising: Optimizing product presentation based on visitor behavior and context
• Analytics & Insights: Analyzing performance data and suggesting adjustments

These tools are assistive only. They are not a substitute for your own review, judgment, or compliance obligations.

2. Known Limitations of AI

AI systems, including those used by AdaptiveShop, have inherent limitations and may produce incorrect or harmful output.

2.1 Accuracy Issues

AI may:

• Generate factually incorrect or outdated information
• Misrepresent product features, materials, or specifications
• Make false or exaggerated claims about benefits or performance
• Invent certifications, approvals, endorsements, or awards

2.2 Consistency Issues

AI may:

• Produce different outputs for the same input
• Contradict itself across different pieces of content
• Use inconsistent tone, voice, or messaging

2.3 Bias & Inappropriate Content

AI may:

• Reflect biased training data (cultural, gender, demographic, etc.)
• Generate insensitive, offensive, or inappropriate language
• Reinforce stereotypes or make discriminatory statements

2.4 Legal & Compliance Risks

AI may:

• Generate content that infringes copyrights or trademarks
• Unintentionally resemble existing creative works
• Make claims that violate advertising, labeling, or consumer laws
• Omit required disclosures, warnings, or safety statements
• Generate health, medical, or safety claims that require regulatory approval

2.5 Context Misunderstanding

AI may:

• Misinterpret visitor intent or query context
• Recommend irrelevant or inappropriate products
• Fail to account for cultural, regional, or seasonal nuances
• Suggest actions or content that conflict with your policies or goals

3. Specific Risks to Merchants

Using AI-generated content without proper review may expose you to:

3.1 Legal Liability

• False advertising or deceptive practices
• Consumer protection and unfair competition claims
• Intellectual property infringement (copyright, trademark, etc.)
• Regulatory enforcement (e.g., FTC or similar agencies)

3.2 Business Risks

• Customer complaints and negative reviews
• Chargebacks due to misrepresented products
• Damage to brand reputation and trust
• Loss of repeat customers

3.3 Financial Risks

• Refunds, discounts, or make-good offers
• Legal fees, settlements, or fines
• Lost revenue from account suspension or takedown
• Increased fraud or dispute monitoring from payment processors

4. Merchant Responsibilities

As a merchant using AI features, you remain fully responsible for all content and actions on your storefront. You agree to:

• Review All AI Content: Carefully review every AI-generated title, description, recommendation, or message before publishing
• Fact-Check Claims: Confirm that all product claims, features, and benefits are true, accurate, and substantiated
• Ensure Legal Compliance: Verify that content complies with applicable laws, regulations, and industry standards in all regions where you sell
• Check for Infringement: Ensure that AI-generated content does not infringe copyrights, trademarks, or other intellectual property rights
• Maintain Brand Integrity: Adjust AI output so it aligns with your brand voice, values, and customer expectations
• Monitor Performance: Continuously monitor AI recommendations and their impact on customer experience
• Edit or Remove: Immediately correct or delete any inaccurate, misleading, offensive, or otherwise problematic AI content
• Document Review: Where appropriate, keep internal records of your review and approval process for higher-risk categories

These responsibilities cannot be delegated to AdaptiveShop or to the AI system. You remain the publisher and owner of all storefront content.

5. No Professional Advice

AI-generated content:

• Is not legal, financial, medical, or other professional advice
• Is not a substitute for consulting your own advisors
• Should not be relied upon for regulated categories (e.g., health, medical, safety, financial products) without appropriate expert review

You are solely responsible for obtaining any professional or legal advice necessary for your products and content.

6. No Guarantees or Warranties

AdaptiveShop makes no guarantees or warranties regarding AI features, including but not limited to:

• Accuracy, completeness, or reliability of AI-generated content
• Suitability or relevance of AI recommendations for your business
• Increased sales, conversions, or revenue
• Legal or regulatory compliance of AI output
• Availability, performance, or uptime of AI tools
• Absence of bugs, errors, or security issues

AI features are provided "AS IS" and "AS AVAILABLE", without any warranties, express or implied, including warranties of merchantability, fitness for a particular purpose, title, and non-infringement.

7. Examples of Potential AI Errors

Examples of the kinds of mistakes AI might make:

8. How to Minimize Risk

To reduce AI-related risks, we strongly recommend that you:

• Provide accurate, complete product data as the starting point
• Review AI output immediately after generation
• Compare AI-generated text to your actual product specifications
• Regularly audit published content, especially for regulated categories
• Disable or restrict AI features for high-risk or heavily regulated items
• Seek legal or regulatory review for sensitive categories (e.g., medical, supplements, financial services)
• Where available, use internal workflows to ensure a human signs off on AI-generated content before it goes live.

9. AdaptiveShop's Limitation of Liability (AI Features)

To the maximum extent permitted by law:

• AdaptiveShop is not liable for any damages arising from AI-generated content or recommendations
• AdaptiveShop is not liable for errors, inaccuracies, omissions, or delays in AI output
• AdaptiveShop is not liable for customer disputes, legal claims, or regulatory actions related to AI content
• AdaptiveShop is not liable for loss of sales, revenue, customers, or data due to AI errors
• AdaptiveShop is not liable for intellectual property claims arising from AI-generated content

AdaptiveShop's total aggregate liability for all AI-related claims shall not exceed the subscription fees you paid to AdaptiveShop in the 12 months preceding the claim, even if AdaptiveShop has been advised of the possibility of such damages.

This AI-specific limitation operates in addition to any broader limitation of liability in the Terms of Service and Merchant Agreement.

10. Merchant Indemnification

You agree to indemnify, defend, and hold harmless AdaptiveShop and its founder, officers, employees, contractors, and affiliates from any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable legal fees) arising out of or related to:

• AI-generated content that you publish or approve
• Your failure to review, verify, or correct AI output
• False, misleading, or illegal claims appearing in AI-generated content
• Intellectual property infringement related to AI-generated content
• Customer, regulator, or third-party disputes connected to AI recommendations or descriptions

This indemnification obligation survives termination of your account and your use of AI features.

11. Right to Modify or Discontinue AI Features

AdaptiveShop reserves the right to:

• Modify, update, or change AI features at any time
• Temporarily or permanently discontinue AI tools
• Change AI models, providers, or algorithms without notice
• Limit or restrict access to AI features for specific merchants or use cases
• Remove, edit, or restrict AI-generated content that violates our policies or creates legal or reputational risk

AdaptiveShop is not liable for any impact on your business resulting from changes to or discontinuation of AI features.

12. Your Acknowledgment

By using AdaptiveShop's AI features, you acknowledge and agree that:

• You have read and understood this AI Risk Disclosure
• You understand that AI output may be wrong, biased, or legally risky
• You accept full responsibility for all AI-generated content that appears on your storefront
• You will review, verify, and approve all AI-generated content before it is published
• You will promptly edit or remove any problematic AI content
• You will not rely solely on AI without human oversight
• You release AdaptiveShop from liability to the fullest extent permitted by law for issues arising from AI-generated content

If you do not agree to these terms, you must not use the AI features and should disable them in your account settings.

13. Updates to This Disclosure

AdaptiveShop may update this AI Risk Disclosure from time to time to reflect changes in AI technology, applicable law, or platform functionality. Continued use of AI features after an update constitutes your acceptance of the revised version.

14. Contact Information

For questions about AI features or this AI Risk Disclosure:

📧 [email protected]
🌐 https://adaptiveshop.ai