Introduction
I’m Kailey Jacomet — a small business attorney focused on trademark and contract law. Through my intellectual property firm, Brand Law Boutique, I help online entrepreneurs legally protect their brands through trademark registration and copyright registration. My shop, Contractista, offers attorney-drafted legal templates for service providers, course creators, and online businesses who need contracts that are both comprehensive and easy to use.
Today, we’re talking about artificial intelligence — specifically, whether you need to disclose your AI use in your website’s legal policies. Spoiler alert: if you’re using tools like ChatGPT, AI-powered CRMs, or automation software, you probably do.
Do You Need to Disclose AI Use on Your Website?
There’s no single “AI law” in the U.S. (yet), but there are already existing laws that touch on AI — especially around privacy, transparency, and consumer protection. If your website uses or integrates AI tools — even behind the scenes — you may be legally required, or at least strongly advised, to disclose that use.
That includes situations where you’re using:
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ChatGPT or other generative AI tools to draft blogs, landing pages, or course content
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AI-powered chatbots, client portals, or CRMs that respond to users
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Tools that analyze personal data to improve services or segment audiences
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Any AI system making automated decisions or recommendations for users
If you’re serving clients in California, Canada, or the European Union — all of which have strict privacy laws — these disclosures become even more important. But even if you’re not legally required to disclose AI usage, it’s still a smart business move. Why? Because transparency helps you build trust, limit liability, and get ahead of fast-changing legal standards.
Where to Put AI Disclosures in Website Policies
The best place to disclose AI usage is in your website’s legal policies. Specifically, you’ll want to include language in:
1. Privacy Policy
Your Privacy Policy should describe how you collect, process, and use personal information — especially if any of that processing is being done by AI. For example:
“We may use AI-powered tools to analyze user behavior and improve our services. These tools process data in accordance with our privacy practices.”
That single sentence makes your use of AI clear and compliant.
2. Terms and Conditions
If your services include any AI-powered features — even something as simple as automated appointment reminders or chat replies — your Terms and Conditions should disclose this. This keeps customer expectations aligned and protects you from liability if something goes wrong. For example:
“Some services may be enhanced or delivered in part through artificial intelligence technologies, under human supervision.”
This kind of clause builds in flexibility and sets the foundation for consumer trust.
3. Website Disclaimers
If you publish health, financial, legal, or any type of advice content on your website, and AI is used to help create or curate that content, your disclaimer should reflect it. AI can generate useful content — but it’s not infallible. A clear disclaimer stating that some content may be AI-assisted helps protect you from claims of misinformation.
What the FTC and International Regulators Say
The Federal Trade Commission (FTC) has made it clear that there is no exemption for AI when it comes to truth in advertising—businesses are still liable for misleading claims generated by AI tools. For example, in its Operation AI Comply enforcement action, the FTC highlighted that using AI to deceive consumers remains illegal. Similarly, the European Union’s GDPR requires transparency when automated decision-making (including AI) is used to process user data. So while AI-specific laws are still evolving, the existing legal frameworks already make it clear: businesses must be transparent about how they use automation and AI to interact with users or make decisions based on user data.
How Contractista Templates Help You Disclose AI Use
TheContractista Website Policy Bundle includes built-in, customizable language to help you legally disclose AI use in plain English. Whether you’re using ChatGPT to help write your blog, or leveraging an AI-driven CRM to route inquiries, the bundle includes:
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A disclosure clause for your Privacy Policy
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A service-related clause in your Terms and Conditions
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A general disclaimer for AI-generated or assisted content
And most importantly, all three documents are updated regularly — so when laws evolve, your documents do too.
Ongoing Protection Through Lifetime Updates
AI regulations are changing quickly. The Contractista Website Policy Bundle includes free lifetime updates — which means every time we make a change to reflect new laws, you’ll get an email with a fresh link to download the latest version. You won’t need to rewrite your policies. We’ll do the hard work for you and keep your business protected.
What's Included in the Website Policy Bundle
This bundle is ideal for online business owners, freelancers, coaches, and content creators who need legally sound and easy-to-understand website policies. You’ll receive:
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Privacy Policy
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Terms and Conditions
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Website Disclaimer
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Flexible AI Disclosure Language
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GDPR and CCPA-Compliant Language
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Editable Google Docs Format
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Lifetime Updates
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Step-by-step instructions for customizing your templates
All drafted by a licensed attorney (that’s me) with years of experience supporting online businesses.
Final Thoughts: Disclose Now, Avoid Headaches Later
AI isn’t going anywhere — and legal regulations are catching up fast. Being transparent about how you use AI helps protect your business, your customers, and your reputation. Whether disclosure isrequiredor simplyprudentright now, getting ahead of it gives you an edge. If your business uses AI in any part of your website, grab the Contractista Website Policy Bundle to make sure you’re covered. And if you’re not sure what you need? DM me “POLICY” onInstagram and I’ll help you figure it out.
