Industrial automation buyers increasingly face contracts determining whether vendors can train shared models using valuable production and operational data. As industries advance towards higher automation, the question of who owns the data generated by robots and automated systems is becoming a critical contract negotiation point. This issue is particularly pressing for the Architecture, Engineering, Construction, and Manufacturing (AECM) sectors, where operational data can be as valuable as the products themselves.
What Happened
The rise of artificial intelligence and machine learning in industrial automation has brought with it a new wave of contract considerations. Vendors of automated systems and robots often seek to use the data generated from their machines to enhance and train their AI models. However, this data is often derived from the proprietary operations of the purchasing company, raising concerns about intellectual property and competitive advantage. According to a recent report by Automation World, there is an increasing number of contracts that specifically address the ownership and usage rights of data generated by these systems.
What This Means for Your Business
For businesses in the AECM sectors, this development has significant implications. Companies must now be vigilant when negotiating contracts with automation vendors, ensuring that data ownership and usage rights are clearly defined. This is not only a matter of protecting intellectual property but also of maintaining a competitive edge. Firms that fail to secure favorable terms may inadvertently allow vendors to use their proprietary data to train models that could benefit competitors. Moreover, data ownership affects compliance with various standards, including CMMC and NIST, as companies must ensure that their data handling meets federal guidelines. This means that procurement officers and compliance teams need to be more involved in the contract negotiation process than ever before.
What US Operators Should Watch
US operators should closely monitor the evolving landscape of data rights in automation contracts. As federal regulations continue to adapt to the growing use of AI in industry, businesses should anticipate new compliance requirements that may affect how data can be shared and used. Additionally, companies should keep an eye on procurement windows and deadlines for adopting new technologies that could be impacted by these changes. Being proactive in understanding and adapting to these contract stipulations can provide a significant competitive advantage, ensuring that your business remains compliant and ahead of the curve.
Source: https://www.automationworld.com/factory/robotics/article/55410053/who-owns-what-robots-learn-the-next-industrial-automation-contract-fight. Read the original story ->
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