AI Terms of
Service

These AI Terms of Service ("AI Terms") supplement the ClosedLoop AI Terms of Service and govern your use of ClosedLoop Labs LLC's, doing business as "ClosedLoop AI" ("ClosedLoop," "we," "us," or "our"), artificial intelligence-powered features and services ("AI Services"). By using our AI Services, you agree to these AI Terms in addition to our general Terms of Service.

ClosedLoop AI uses artificial intelligence and machine learning technologies to analyze customer feedback, extract product insights, and provide intelligent recommendations. These AI Terms explain how we use AI, what data is processed, and your rights and responsibilities when using AI-powered features.

These AI Terms are incorporated by reference into our Data Processing Agreement (DPA). If you have executed a DPA with ClosedLoop AI, the terms of the DPA shall govern in the event of any conflict with these AI Terms.

ClosedLoop AI's AI Services include, but are not limited to:

• Product Context Analysis: AI analyzes your product documentation, website, and related materials to understand your product, customers, competitors, and use cases
• Feedback Analysis: AI extracts product insights, needs, pains, and opportunities from customer conversations, support tickets, surveys, and other feedback sources
• Pattern Recognition: AI identifies patterns across conversations, accounts, and segments to surface recurring themes and priorities
• Product Idea Generation: AI groups insights into opportunity themes with context, urgency, personas, and revenue impact
• Intelligent Routing: AI automatically routes insights to appropriate product tools and systems

ClosedLoop AI uses Microsoft Azure OpenAI service to power our AI features. Azure OpenAI is a Microsoft Azure service that provides large language models and AI capabilities. Azure OpenAI is powered by OpenAI's GPT models (including GPT-5-mini and GPT-5) and is hosted on Microsoft Azure infrastructure.

Data Processing: When you use our AI Services, your data (including customer feedback, conversations, and product information) is sent to Azure OpenAI for processing. This data is processed according to Microsoft's data processing terms and security standards, as set forth in Microsoft's Azure OpenAI data processing agreement.

Data Retention by Subprocessor: Azure OpenAI does not use your data to train or improve their models. Your data is processed only for the purpose of providing the AI Services you request, and is not retained by Azure OpenAI beyond what is necessary to complete the processing. Microsoft does not retain your data for model training or improvement purposes.

Data Location: All data processing occurs in Microsoft Azure data centers located in the United States. Your data remains in the same region and does not cross international boundaries during processing.

International Data Transfers: For customers subject to GDPR or other data protection laws requiring data residency in the European Union or other regions, ClosedLoop AI currently processes all data in the United States by default. We rely on Standard Contractual Clauses (SCCs) and the UK International Data Transfer Agreement (UK IDTA) to provide appropriate safeguards for international data transfers. For enterprise customers with specific data residency requirements, we can arrange EU-based data processing. For questions about data residency requirements or to discuss EU region processing, please contact [email protected].

Abuse Monitoring Retention: Azure OpenAI may retain prompts and outputs for a limited period (typically up to 30 days) for abuse monitoring, fraud prevention, and safety purposes. This retention is separate from model training and is used solely for security and safety monitoring. For more information about Azure OpenAI's data handling practices, please refer to Microsoft's Azure OpenAI data privacy documentation.

Data Isolation: Each customer's data is completely isolated. We never share insights or data between companies, ensuring your competitive intelligence remains confidential. All data processing is performed in isolated environments with strict access controls.

No Training on Customer Data: Your data is never used to train or improve AI models. Azure OpenAI processes your data only for the specific AI Services you request and does not use it for model training or improvement. This commitment is contractually enforced through our agreements with Microsoft.

Encryption: All data transmitted to and from Azure OpenAI is encrypted in transit using TLS 1.3 or higher. Data at rest is encrypted using Azure's standard encryption mechanisms, including Azure Storage Service Encryption and Azure Disk Encryption.

Access Controls: Access to your data is restricted to authorized ClosedLoop AI personnel and Azure OpenAI's processing infrastructure. All access is logged and monitored through comprehensive audit logging systems. We implement role-based access control (RBAC) and require multi-factor authentication (MFA) for all personnel with access to customer data.

Audit Logging: All data access, modifications, and system activities are logged in our audit system, which is retained for two (2) years for security monitoring and compliance purposes. Audit logs include user identification, timestamps, actions performed, and resource access details.

Incident Response: In the event of a security incident affecting your data, ClosedLoop AI will notify you within seventy-two (72) hours of becoming aware of the incident, unless notification is delayed due to law enforcement requirements or ongoing investigation. Notification will include a description of the incident, the types of data affected, the likely consequences, and the measures taken or proposed to address the incident.

Data Retention: We retain your processed data according to our data retention policies as set forth in our Data Processing Agreement and Privacy Policy. Processed insights and analysis results are stored in your ClosedLoop AI account and can be deleted at any time through your account settings or by contacting [email protected].

ClosedLoop AI maintains the following data retention policies for data processed through our AI Services:

• Raw Customer Data: Retained for up to twelve (12) months, then automatically deleted unless a longer retention period is required by law or necessary for ongoing service delivery
• AI-Generated Insights: Retained for the duration of the subscription term and may be retained longer for ongoing service delivery, subject to customer deletion requests
• Pattern Recognition Data: Raw signals retained for two (2) years, pattern history retained for five (5) years, strategic insights retained for three (3) years
• Audit Logs: Retained for two (2) years for security and compliance purposes
• Account Data: Retained for the duration of the subscription term and deleted within thirty (30) days of account termination, unless a longer retention period is required by law

You may request deletion of your data at any time through your account settings or by contacting [email protected]. Data deletion requests will be processed promptly in accordance with our Data Processing Agreement and applicable data protection laws.

AI-Generated Content: The insights, analysis, and recommendations provided by our AI Services are generated by artificial intelligence and may contain errors, inaccuracies, or incomplete information. While we strive for accuracy, AI-generated content should be reviewed and validated by your team before making critical business decisions.

No Guarantees: We do not guarantee the accuracy, completeness, or reliability of AI-generated insights. You are responsible for reviewing and validating all AI-generated content before using it to make product decisions.

Continuous Improvement: We continuously work to improve the accuracy and quality of our AI Services. However, AI technology is evolving, and results may vary based on the quality and format of your input data.

Human Oversight: We recommend that all AI-generated insights be reviewed by qualified personnel before being used for product planning, roadmap decisions, or other critical business activities. ClosedLoop AI personnel do not review or validate your AI-generated insights before they are delivered to you. All review and validation of AI-generated content is performed solely by your personnel.

Data Quality: The accuracy of AI-generated insights depends on the quality of the data you provide. You are responsible for ensuring that the feedback, conversations, and product information you submit are accurate and complete.

Review and Validation: You are responsible for reviewing and validating all AI-generated insights before using them for business decisions. You should not rely solely on AI-generated content without appropriate human review.

Compliance: You are responsible for ensuring that any data you submit to our AI Services complies with applicable laws, regulations, and your own privacy policies. You must have the necessary rights and permissions to process and analyze the data you submit.

Prohibited Uses: You may not use our AI Services to:

• Process data that violates applicable laws or regulations
• Generate content that is illegal, harmful, or violates third-party rights
• Attempt to reverse engineer or extract proprietary AI models or algorithms
• Use AI Services in a manner that could damage, disable, or impair our services

High-Risk Use Prohibitions: You may not use our AI Services for the following high-risk applications without explicit written authorization from ClosedLoop AI and implementation of appropriate controls:

• Medical diagnosis, treatment recommendations, or healthcare decision-making
• Legal advice, legal document generation, or legal decision-making
• Critical infrastructure operations, including power grids, transportation systems, or emergency services
• Employment decisions, including hiring, promotion, or termination decisions
• Credit decisions, loan approvals, or financial eligibility determinations
• Automated decision-making that produces legal effects or similarly significant effects on individuals

If you require use of our AI Services for any of the above high-risk applications, please contact us at [email protected] to discuss appropriate safeguards and controls.

Evaluation and Benchmarking: You may evaluate and benchmark our AI Services for internal purposes, including comparing performance, accuracy, and results with other AI services. You may share evaluation results with third parties under appropriate confidentiality agreements. We request that you notify us of any material benchmarking activities to help us improve our services.

Your Data: You retain all ownership rights to the data you submit to our AI Services. We do not claim any ownership rights to your data.

AI-Generated Insights: You own the insights, analysis, and recommendations generated by our AI Services based on your data. These are considered your intellectual property.

Our Technology: The AI technology, algorithms, and methodologies used to generate insights remain the property of ClosedLoop AI and our technology providers (including Microsoft and OpenAI).

We may update, modify, or discontinue AI Services at any time. We will provide at least thirty (30) days' advance notice of material changes that may affect your use of the services. Continued use of our AI Services after such changes constitutes acceptance of the updated terms.

We may also update the underlying AI models or technology providers to improve performance, accuracy, or security. Such updates may result in changes to the format or structure of AI-generated insights. If we change our AI technology provider or underlying AI models in a way that meaningfully changes how your data is processed, we will:

• Provide at least thirty (30) days' advance written notice
• Describe the nature of the change and its impact on data processing
• Provide you with the opportunity to object to the change
• Work with you to address any concerns, which may include ceasing to use the new provider or model for your data, or providing alternative service arrangements

If you object to a change in AI technology provider or underlying model, you may terminate your use of the affected AI Services within thirty (30) days of the notice. Termination rights are set forth in your Agreement with ClosedLoop AI.

To the maximum extent permitted by law, ClosedLoop AI shall not be liable for any indirect, incidental, special, consequential, or punitive damages arising from your use of AI Services, including but not limited to:

• Inaccurate or incomplete AI-generated insights
• Business decisions made based on AI-generated content
• Loss of data or information
• Loss of profits, revenue, or business opportunities

Our total liability for any claims related to AI Services shall not exceed the amount you paid to ClosedLoop AI in the twelve (12) months preceding the claim, except as set forth below.

Liability Carve-Outs: The foregoing limitation of liability does not apply to, and ClosedLoop AI's liability shall not be limited for:

• Data Breach: Claims arising from a breach of ClosedLoop AI's security obligations resulting in unauthorized access to or disclosure of your data, up to two (2) times the amount you paid to ClosedLoop AI in the twelve (12) months preceding the claim
• Intellectual Property Infringement: Claims that the AI Services (excluding AI-generated outputs) infringe a third party's intellectual property rights, up to two (2) times the amount you paid to ClosedLoop AI in the twelve (12) months preceding the claim
• Confidentiality Breach: Claims arising from a breach of ClosedLoop AI's confidentiality obligations, up to two (2) times the amount you paid to ClosedLoop AI in the twelve (12) months preceding the claim
• Gross Negligence or Willful Misconduct: Claims arising from ClosedLoop AI's gross negligence or willful misconduct

Intellectual Property Indemnity: ClosedLoop AI will defend you against any third-party claim that the AI Services (excluding AI-generated outputs) infringe a third party's intellectual property rights, and will pay the resulting costs and damages finally awarded against you, provided that you promptly notify ClosedLoop AI of the claim and cooperate with ClosedLoop AI in the defense. This indemnity does not apply to claims arising from your use of AI Services in combination with products or services not provided by ClosedLoop AI, or from your modification of AI-generated outputs.

These AI Terms are incorporated by reference into our Data Processing Agreement (DPA). If you have executed a DPA with ClosedLoop AI, the terms of the DPA shall govern in the event of any conflict with these AI Terms.

If you are a ClosedLoop AI Subscriber and wish to enter into our Data Processing Agreement, please review our Data Processing Agreement or contact us at [email protected].

If you have questions about these AI Terms or our use of AI technology, please contact us at:

Email: [email protected]
Support: [email protected]