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AI Features Terms & Conditions
Last Updated July 6, 2026
These AI Features Terms and Conditions (“AI Addendum”) is incorporated into and forms part of the Customer Subscription Terms and Conditions (the “Agreement”) entered into between Demostack, Inc. (“Demostack”) and the customer identified on the Order Form (“Customer”).
This AI Addendum applies solely to Customer’s access to and use of those features of the Services that Demostack expressly designates as artificial-intelligence-enabled features (the “AI Features”). Capitalized terms used but not defined in this AI Addendum have the meanings given to them in the Agreement. In the event of any conflict between this AI Addendum and the Agreement with respect to the AI Features, this AI Addendum will control.
Definitions
“AI Monthly Credits”means the fixednumber of monthly AI Credits that Customer may utilize for the AI Features, as specifically set forth in Customer’s applicable Order Form. AI Monthly Credits are non-cumulative and will expire at the end of each monthly billing cycle; any unused Monthly Credits will not roll over or carry forward to any subsequent month.
“AI Features” means those features, functions, modules, or capabilities of the Services that Demostack expressly designates (in the Documentation, in-product, or in an Order Form) as making use of generative artificial intelligence, machine-learning models, or large language models, including any successor or replacement features so designated by Demostack.
“AI Input” means any prompts, instructions, queries, files, Customer Data, or other content submitted by or on behalf of Customer or a User to or through an AI Feature.
“AI Output” means any text, code, data, suggestions, summaries, reports, classifications, demos, clones or other content generated by an AI Feature in response to AI Input.
“AI Sub-processors” means the third-party providers of foundation models or other artificial-intelligence services that Demostack uses to deliver the AI Features, as identified in Section 4 (AI Sub-processors) of this AI Addendum.
Optional Use; Beta Features
Optional Component. The AI Features are an optional component of the Services. Customers are not required to use the AI Features in order to use the remainder of the Services. For use of the AI Features, Customer is provided an initial bucket of AI Monthly Credits, as set forth in the applicable Order Form.Customer may purchase additional AI Monthly Credits subject to an Order Form. Customer may request to disable the AI Features, at any time, through their Demostack account manager. Disabling the AI Features will not entitle Customer to a refund or fee credit except as expressly set forth in an Order Form.
Beta and Preview Features. Demostack may designate one or more AI Features as “beta,” “preview,” “alpha,” “experimental,” or similar (each, a “Preview Feature”). Preview Features are made available on an “as-is” basis, may be modified or discontinued at any time, and are not subject to any service-level, support, or uninterrupted-availability commitments under the Agreement. Customer’s use of a Preview Feature is voluntary and at Customer’s sole risk.
AI Input and AI Output
AI Input. As between the parties, AI Input constitutes Customer Data and is subject to the rights, restrictions, and protections applicable to Customer Data under the Agreement, as supplemented by this AI Addendum. Customer is solely responsible for the accuracy, quality, legality, and appropriateness of all AI Input, and for ensuring that Customer has all necessary rights, consents, and authorizations to submit AI Input to the AI Features and to permit Demostack and the AI Sub-processors to process the AI Input as contemplated by this AI Addendum.
AI Output. Subject to Customer’s compliance with the Agreement and this AI Addendum, and to the rights of Demostack, the AI Sub-processors, and other third parties (including any third-party rights in the underlying foundation models), as between Demostack and Customer, Customer owns the AI Output generated for Customer, and Demostack hereby assigns to Customer all right, title, and interest it may have in such AI Output. Customer acknowledges that, due to the probabilistic nature of generative artificial intelligence, similar or identical AI Output may be generated for other Demostack customers or third parties in response to similar inputs, and Demostack does not represent or warrant that any AI Output is unique to Customer.
License to Provide the AI Features. Customer grants Demostack and its AI Sub-processors a non-exclusive, worldwide, royalty-free license to host, copy, transmit, process, and use AI Input and AI Output solely as necessary to: (a) provide and operate the AI Features for Customer; (b) detect, prevent, investigate, and respond to abuse, fraud, security incidents, illegal activity, and violations of Section 7 (Acceptable Use of AI Features); and (c) comply with applicable law and lawful governmental requests. This license is granted in addition to, and is consistent with, the license set forth in Section 4.2 (Customer Data) of the Agreement.
Prohibited AI Input. Customer will not submit, and will not permit any User to submit, as AI Input any: (a) protected health information governed by the U.S. Health Insurance Portability and Accountability Act (HIPAA) or analogous health-privacy laws; (b) payment card data subject to the Payment Card Industry Data Security Standard (PCI DSS); (c) government-issued identifiers (including Social Security numbers, passport numbers, or national identification numbers); (d) biometric or genetic data; (e) personal data of children under the age of sixteen (16) (or such other age as may be defined under applicable law); or (f) any other special categories of personal data as defined under the EU General Data Protection Regulation, the Israeli Privacy Protection Law, or analogous data-protection laws, in each case unless the parties have executed a written agreement expressly permitting such use. The AI Features are not designed or intended to process the foregoing categories of data, and Customer assumes all risk arising from any submission of such data in violation of this Section 3.4.
AI Sub-processors
Identified AI Sub-processors. Demostack delivers the AI Features through enterprise or commercial offerings of third-party AI providers. As of the Effective Date of this AI Addendum, Demostack’s AI Sub-processors are: (a) Google LLC (in connection with the Vertex AI and Gemini services); and (b) Anthropic, PBC (in connection with the Claude API). Demostack maintains a current list of AI Sub-processors and will provide notice of material changes to that list consistent with the notice practices set forth in any data processing agreement executed between the parties (the “DPA”) or, in the absence of a DPA, by updating Demostack’s published trust or sub-processor page.
Contractual Protections. Demostack accesses each AI Sub-processor under an enterprise or commercial agreement that contractually prohibits the AI Sub-processor from using AI Input or AI Output to train, fine-tune, or otherwise improve any foundation model that the AI Sub-processor makes generally available. Demostack will not configure the AI Features in a manner that opts AI Input or AI Output into any AI Sub-processor model-training program.
No Training on Customer Data
Demostack will not use AI Input or AI Output to train, fine-tune, or otherwise develop or improve any generative artificial-intelligence model that Demostack makes available to other customers or to the public.
Demostack does not train or fine-tune the foundation models provided by the AI Sub-processors. The AI Sub-processors are contractually prohibited from using AI Input or AI Output to train, fine-tune, or improve their foundation models, as described in Section 4.2.
Notwithstanding Sections 5.1 and 5.2, Section 4.4 (Usage Information) of the Agreement remains in effect, and Demostack may collect and use technical metadata and other operational data relating to the AI Features (such as latency, error rates, request volumes, model identifiers, and configuration data) to operate, secure, monitor, troubleshoot, and improve the Services, in each case in aggregated or de-identified form and without using AI Input or AI Output to train any generative AI model that is made generally available.
Security and Data Protection
General. Demostack maintains administrative, physical, and technical safeguards for the AI Features that include, at a minimum, the controls described in Section 2.2 (Security and Privacy of Customer Data) of the Agreement, supplemented by the controls in this Section 6.
Encryption. AI Input and AI Output are encrypted in transit using TLS 1.3 (or a successor protocol of equivalent or greater strength) and encrypted at rest using AES-256 (or a successor algorithm of equivalent or greater strength).
Tenant Isolation. The AI Features are designed to maintain tenant isolation between customers. Customer’s AI Input and AI Output are processed within Customer’s logically isolated tenant context and are not commingled with the AI Input or AI Output of other customers in a manner that would result in cross-tenant disclosure.
Input and Output Governance. Demostack maintains input validation and sanitization controls intended to mitigate prompt-injection and abuse, and automated output-filtering controls intended to screen AI Output against safety guidelines before AI Output is presented to Users.
Logging and Retention. Demostack collects and retains AI Input and AI Output solely for the purposes of providing and operating the AI Features, security monitoring, abuse detection and response, audit, and compliance with applicable law, and in accordance with the retention periods set forth in the DPA or applicable Documentation. Demostack does not sell AI Input or AI Output and does not use AI Input or AI Output for advertising or unrelated marketing purposes.
Threat Modeling and Testing. Demostack performs internal security reviews of the AI Features no less frequently than bi-annually, performs threat modeling of AI integrations as part of its software-development lifecycle (with a focus on prompt injection, application-level abuse, and tenant isolation), and includes the AI Features within the scope of its third-party penetration-testing program.
Model Context Protocol (MCP). Demostack may make available customer-facing Model Context Protocol (“MCP”) endpoints as part of the AI Features, enabling Customer to connect external AI agents, applications, or large language models (LLMs) to Demostack. Demostack does not restrict, vet, or control the specific third-party agents or LLM providers that Customer chooses to connect to these customer-facing MCP endpoints, and Customer remains solely responsible for the security and compliance of its chosen third-party agents. Conversely, any MCP configurations or integrations utilized internally by Demostack to power its own AI Features are restricted to a closed list of approved providers that have successfully met Demostack’s internal security review requirements. Demostack reserves the right to modify its internal list of approved MCP integrations at any time.
Acceptable Use of AI Features
Restrictions. In addition to the use restrictions set forth in the Agreement, Customer will not, and will not permit any User or third party to, use the AI Features:
(a) to generate or distribute content that is unlawful, defamatory, infringing, harassing, or that violates the rights (including privacy or publicity rights) of any third party;
(b) to develop, train, fine-tune, or improve any artificial-intelligence model or service that competes with the Services, Demostack, or any AI Sub-processor (including by extracting, scraping, or otherwise harvesting AI Output to build a competing model or dataset);
(c) to generate child sexual abuse material, non-consensual intimate imagery, or sexual content depicting minors, or to generate content that promotes terrorism, violent extremism, or self-harm;
(d) to make automated decisions producing legal or similarly significant effects on individuals (including decisions regarding employment, credit, housing, education, healthcare, insurance, immigration, or criminal justice) without meaningful human review by a qualified person;
(e) to generate individualized legal, medical, financial, or other professional advice that, in the ordinary course, would be provided by a licensed professional, except where Customer is itself a regulated professional acting within the scope of its license and Customer accepts responsibility for the use of such AI Output;
(f) for biometric identification or categorization, facial recognition, emotion inference, or social scoring of natural persons;
(g) to mislead any individual into believing that AI Output was generated by a human in circumstances in which such concealment would deceive a reasonable person to that person’s detriment, or to impersonate a real person without authorization;
(h) to circumvent, disable, or interfere with safety, security, content-moderation, or rate-limit features of the AI Features, the AI Sub-processors, or any underlying foundation model (including by means of prompt injection or jailbreak techniques);
(l) to reverse engineer, extract, or attempt to derive the weights, parameters, hyperparameters, architecture, or training data of any foundation model underlying the AI Features, or to use the AI Features to probe for, elicit, or reconstruct training data of any AI Sub-processor; or
(i) in violation of any usage policy or acceptable-use policy of an AI Sub-processor, as Demostack may make available or reference from time to time;
(j) to generate or distribute, in a demonstration environment or otherwise, AI Output that contains false or misleading representations regarding Customer’s products, services, customers, partners, financial performance, security posture, or compliance certifications, or that incorporates the names, logos, trademarks, or testimonials of third parties without authorization;
End-User Disclosure. Where Customer makes AI Output available to its own end users or to other third parties, Customer is solely responsible for providing any disclosures required by applicable law (including any applicable AI-transparency or labeling requirements) regarding the use of artificial intelligence and the nature of the AI Output.
Suspension. A breach of this Section 7 will be deemed a material breach of the Agreement. In addition to any rights and remedies available under the Agreement, Demostack may immediately suspend Customer’s access to the AI Features upon notice to Customer if Demostack reasonably believes that continued use of the AI Features by Customer or any User presents a risk of harm to Demostack, the Services, an AI Sub-processor, or any third party, or violates an AI Sub-processor’s usage policy.
Disclaimers Regarding AI Output
Probabilistic Nature. Customer acknowledges that the AI Features rely on machine-learning models that are inherently probabilistic and non-deterministic, and that AI Output may be inaccurate, incomplete, biased, offensive, or otherwise unsuitable for Customer’s purposes.
AI OUTPUT IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, DEMOSTACK DOES NOT WARRANT THAT AI OUTPUT WILL BE ACCURATE, COMPLETE, CURRENT, RELIABLE, FREE OF BIAS, FIT FOR ANY PARTICULAR PURPOSE, OR FREE OF INFRINGEMENT. AI OUTPUT MAY CONTAIN ERRORS, OMISSIONS, OR FABRICATED CONTENT (COMMONLY REFERRED TO AS “HALLUCINATIONS”), AND THE SAME OR SUBSTANTIALLY SIMILAR AI OUTPUT MAY BE GENERATED FOR OTHER USERS IN RESPONSE TO SIMILAR INPUTS.
Customer Review. Customer is responsible for evaluating, verifying, and reviewing AI Output before relying on, sharing, publishing, or otherwise acting on it. Customer agrees not to use AI Output as the sole basis for decisions that may have material legal, financial, medical, safety, employment, or other significant effects.
Indemnification and Liability
Demostack Indemnity Carve-Out. For clarity’s sake, Demostack’s defense and indemnification obligations existing under the Agreement do not extend to: (a) any claim that AI Output infringes or misappropriates the intellectual-property rights of a third party; (b) any claim arising from AI Input or from Customer’s combination, modification, or use of AI Output; or (c) any claim arising from Customer’s use of an AI Feature in violation of the Agreement, this AI Addendum, the Documentation, or applicable law.
Customer Indemnity. In addition to Customer’s indemnification obligations under the Agreement, Customer will defend, indemnify, and hold harmless Demostack and its Affiliates from and against any third-party claim arising out of or related to: (a) AI Input; (b) Customer’s use, distribution, or publication of AI Output (including any claim that AI Input or Customer’s use of AI Output infringes or misappropriates the intellectual-property rights of a third party, violates privacy or publicity rights, or violates applicable law); or (c) any breach by Customer or its Users of Section 7 (Acceptable Use of AI Features) of this AI Addendum.
Limitations of Liability. All limitations of liability set forth in the Agreement apply to all liabilities arising out of or related to this AI Addendum.
Modifications and Termination
Changes to AI Features. Demostack may add to, modify, suspend, or discontinue any AI Feature, AI Sub-processor, foundation model, or other component of the AI Features at any time, provided that, with respect to AI Features that are not Preview Features, Demostack will not materially decrease the overall functionality of an AI Feature during the then-current subscription term, except (a) where reasonably necessary to comply with applicable law, an order of a governmental authority, or a policy or requirement of an AI Sub-processor; or (b) where required to address a material security, safety, intellectual-property, or operational risk.
Termination of AI Features. Demostack may terminate Customer’s right to use any AI Feature upon thirty (30) days’ written notice if Demostack discontinues the AI Feature generally for similarly situated customers. Termination of an AI Feature alone does not terminate the Agreement or any Order Form, except as expressly set forth in an Order Form.
Suspension of AI Features. Demostack reserves the right tosuspend Customer’s access to use the AI Features in the event that Customer fails to pay any undisputed overage fees due on Customer’s usage in excess ofthe designated amount of AI Monthly Credits, in accordance with the rate and terms set forth in the Order Form.
