Copysmith Enterprise Risk Assessment | AI Tool Risk

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Copysmith

Risk Overview

Moderate Risk

/10

Text Generation

Writing Assistant

Marketing Content

Top Risks

Binding arbitration and class-action waiver (added March 2023) with 6-month liability cap significantly restrict users' legal recourse in disputes. Ambiguous training-use language does not explicitly prohibit use of user content for model development, creating IP and data-use risk despite stated intent to avoid 'selling' personal information.

Mitigations

Enable training opt-out via account settings if available (verify current availability); review and negotiate custom MSA/DPA for enterprise tiers to override standard ToS restrictions. SOC 2 Type II certification and dedicated Trust Center provide baseline security assurance; request breach notification SLA in writing.

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Highest Risk Categories

The highest-scoring risk categories identified in this assessment.

Legal Terms

Rewritten ToS (March 9, 2023) now includes binding arbitration (International Commercial Arbitration Court, European Arbitration Chamber, seat Edmonton Canada), explicit class action waiver ('no right or authority for any Dispute to be arbitrated on a class-action basis'), and 6-month liability cap. Governed by Canadian law. This is materially more restrictive than previous assessment which noted arbitration specifics unconfirmed.

/10

Training Use

Privacy policy does not explicitly prohibit training on user content; states data may be used for 'internal research for technological development and demonstration' which is not considered 'selling.' No explicit opt-out for training. Ambiguous language leaves training risk open. Copysmith is now a platform holding company (owns Frase, Describely, Rytr) so actual data handling defers to sub-platforms.

/10

3rd-Party Sharing

Shares with service providers under written contracts. States it has not sold personal information in the preceding 12 months and will not sell in the future. Data disclosed to service providers for business purposes. No explicit ad network sharing found. Standard B2B sharing profile.

/10