<h1>Enterprise risks and obligations when adopting vendor AI agents: privacy, IP, liability, contracts, auditability, and compliance review</h1> A software vendor announced launch of embedded AI agents that use proprietary context- and intent-aware technology to generate in-app guidance, analytics insights, and distilled knowledge for enterprise users. Legally relevant issues include data privacy and consent as agents parse application context and user intent, potential intellectual property and trade-secret protection for the vendor's proprietary models, vendor liability for erroneous or non-compliant guidance, and contractual implications for customers relying on automated decision support (service levels, warranties, indemnities, and regulatory compliance). Enterprises should review data processing agreements, auditability, explainability, change-management obligations, and applicable AI or sectoral regulations before deployment.