Levels_of_Generative_AI_Language.pdf

Data Classification: Sensitive

Levels of Generative AI Language

LEVEL 3 TERMS – DISCLOSURE ONLY

11. GENERATIVE ARTIFICIAL INTELLIGENCE

11.1 Definitions

“Artificial Intelligence” (“AI”) means an engineered or machine-based system that varies in its level of autonomy and that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs that can influence physical or virtual environments.

“Generative AI” (“GenAI”) means an Artificial Intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system's training data.

11.2 Generative AI Disclosure Obligations

A. Contractor shall immediately notify the Lottery Contract Manager in writing if:

(1) Contractor intends to provide previously undisclosed GenAI as a Contract deliverable; (2) Contractor intends to utilize previously undisclosed GenAI, including GenAI from third parties, to complete any portion of the Contract deliverables or services; or (3) there are any modifications to the intended use or operation of previously disclosed GenAI that could reasonably (a) affect the output of the GenAI model or (b) increase or introduce new risks to the Lottery, including but not limited to privacy, security, compliance, or operational risks.

(Hereafter, the modifications described in (3) shall be referred to as “modified GenAI”).

B. At the direction of the Lottery, Contractor shall discontinue providing previously undisclosed GenAI or modified GenAI to the Lottery or utilizing previously undisclosed GenAI or modified GenAI to complete any portion of the Contract deliverables or services.

C. If the use of previously undisclosed GenAI or modified GenAI is approved by the Lottery, any applicable deliverable descriptions included in Work Orders, Task Orders, and the Contract will be amended by the Parties to reflect the use of the previously undisclosed GenAI or modified GenAI. At the Lottery’s discretion, the Contract will also be amended to include the Lottery’s Level 1 or Level 2 Generative Artificial Intelligence Provisions. These changes will be made at no additional cost to the Lottery.

D. The Lottery, at its sole discretion, may consider Contractor’s failure to disclose or discontinue the provision or use of previously undisclosed GenAI or modified GenAI, as described above, to constitute a material breach of the Contract. The

Lottery is entitled to seek any and all remedies available to it under law as a result of such breach, including but not limited to termination of the Contract.

LEVEL 2 TERMS

11.1 Definitions

“GenAI Training Data” means any content, information, or data that is used to train, tune, test, or validate a GenAI, including text, images, video, audio, code, or similar types of input.

“Generated Data” means any output, results, content, or other data that is produced by GenAI, including but not limited to text, images, video, audio, code, or similar types of output.

“Hallucination” means Generated Data that is nonsensical, false, or misleading, and is not based on real or existing data, but is instead produced by bias or the GenAI’s extrapolation or creative interpretation of its Gen AI Training Data.

“Prompt” means any written, spoken, or rendered information provided as a query, command, or other form of input, to any GenAI in connection with this Contract.

For avoidance of doubt, Prompt includes any input automatically detected or created by the GenAI, as well as any derivate works of a Prompt or collection of Prompts.

11.3 Contractor’s Obligations for Responsible Use

A. Contractor shall ensure that it has obtained all necessary consents, permissions, and licenses from data subjects and third parties to use the GenAI for this Contract. Contractor represents and warrants it has the appropriate U.S.

intellectual property rights associated with any GenAI used in the deliverables provided under the Contract.

B. Contractor shall ensure that the GenAI included or made available as part of the deliverables is equitable, non-discriminatory, and reasonably well-designed to avoid harmful, offensive, dangerous, and unlawful impact. Contractor shall be liable for any Hallucination produced by the GenAI that has an adverse impact on Generated Data or a deliverable.

11.4 GenAI Training Data Ownership

Except as otherwise agreed to by the Parties, Contractor shall retain all ownership and intellectual property rights in the GenAI Training Data it provides.

11.5 Rights to Lottery Generated Data

The Parties agree that Generated Data created from a Lottery-provided Prompt is not a derivative work of the GenAI Training Data. Notwithstanding the preceding sentence, in the event a court of competent jurisdiction determines that Generated Data created from a Lottery-provided Prompt constitutes a derivative work of the GenAI Training Data, Contractor agrees to grant the Lottery an unlimited, irrevocable, worldwide, perpetual, royalty-free, non-exclusive right, and license to use, modify, reproduce, perform, release, display, create derivative works from, and disclose the Generated Data, without limitation.

11.6 Use of Lottery Data in GenAI Training Data

Contractor shall not incorporate any Lottery Data into GenAI Training Data and shall not otherwise utilize Lottery Data to train, tune, maintain, improve, or develop GenAI, except with the express written authorization from the Lottery specifying the Lottery Data that may be used along with the acceptable scope of such usage.

LEVEL 1 TERMS

11.1 Definitions

“GenAI Training Data” means any content, information, or data that is used to train, tune, test, or validate a GenAI, including text, images, video, audio, code, or similar types of input.

“Generated Data” means any output, results, content, or other data that is produced by GenAI, including but not limited to text, images, video, audio, code, or similar types of output.

“Hallucination” means Generated Data that is nonsensical, false, or misleading, and is not based on real or existing data, but is instead produced by bias or the GenAI’s extrapolation or creative interpretation of its Gen AI Training Data.

“Pre-Existing Materials” means materials developed or otherwise obtained by or for Contractor or its affiliates independently of the Contract.

“Prompt” means any written, spoken, or rendered information provided as a query, command, or other form of input, to any GenAI in connection with this Contract.

For avoidance of doubt, Prompt includes any input automatically detected or created by the GenAI, as well as any derivate works of a Prompt or collection of Prompts.

11.5 Contractor’s Obligations for Responsible Use

C. Contractor shall ensure that it has obtained all necessary consents, permissions, and licenses from data subjects and third parties to use the GenAI for this Contract. Contractor represents and warrants it has the appropriate U.S.

intellectual property rights associated with any GenAI used in the deliverables provided under the Contract.

D. Contractor shall ensure that the GenAI included or made available as part of the deliverables is equitable, non-discriminatory, and reasonably well-designed to avoid harmful, offensive, dangerous, and unlawful impact. Contractor shall be liable for any Hallucination produced by the GenAI that has an adverse impact on Generated Data or a deliverable.

11.6 GenAI Training Data Ownership

Except as otherwise agreed to by the Parties, Contractor shall retain all ownership and intellectual property rights in the GenAI Training Data it provides.

11.6 Rights to Lottery Generated Data

The Parties agree that Generated Data created from a Lottery-provided Prompt is not a derivative work of the GenAI Training Data. Notwithstanding the preceding sentence, in the event a court of competent jurisdiction determines that Generated Data created from a Lottery-provided Prompt constitutes a derivative work of the GenAI Training Data, Contractor agrees to grant the Lottery an unlimited, irrevocable, worldwide, perpetual, royalty-free, non-exclusive right, and license to use, modify, reproduce, perform, release, display, create derivative works from, and disclose the Generated Data, without limitation.

11.7 Use of Lottery Data in GenAI Training Data

Contractor shall not incorporate any Lottery Data into GenAI Training Data and shall not otherwise utilize Lottery Data to train, tune, maintain, improve, or develop GenAI, except with the express written authorization from the Lottery specifying the Lottery Data that may be used along with the acceptable scope of such usage.

11.7 Augmentation of GenAI Training Data

A. The Lottery shall have the right to augment the GenAI Training Data provided by Contractor with public data and Lottery Data. The Lottery shall retain all ownership and intellectual property rights in Lottery Data used to augment GenAI Training Data.

B. Contractor shall have the right to examine any public data being proposed to augment the GenAI Training Data, such as by requesting access, copies, or reports of the data, to verify its compliance with the Contract terms and conditions.

11.8 GenAI Additional Security Requirements

Contractor shall provide the Lottery and its agents reasonable access to the GenAI security logs, latency statistics, and other related GenAI security data that affect this Contract and Generated Data, at no cost to the Lottery.

11.9 Confidentiality of Data and Prompts

Contractor shall protect from unauthorized use and disclosure any Prompts developed by Contractor under this Contract, as well as any Generated Data resulting from such Prompts.

11.10 Rights to Prompts and Generated Content

A. To the extent that Contractor-provided Prompts constitute Pre-Existing

Materials, Contractor shall retain ownership of such Prompts.

B. For the avoidance of doubt and for the purposes of this Contract, Lottery-provided Prompts and Generated Data created from a Lottery-provided Prompt shall constitute Lottery Data.

C. Unless otherwise specified in the Statement of Work, Prompts or Generated Data developed or produced by the Contractor as deliverables pursuant to this Contract shall constitute Lottery Data.

11.11 GenAI Training and Generated Data Review

A. GenAI Training Data Review: Contractor shall track and disclose the quality of the GenAI Training Data used for any GenAI in relation to this Contract, using suitable metrics and methods to measure the accuracy, relevance, and bias of the data over time. Contractor shall share such metrics and methods, as well as the underlying data, with the Lottery upon request by the Lottery or at periodic intervals as may be agreed upon by the Parties.

The Lottery retains the right to audit, review, or investigate the quality of the GenAI Training Data at any time, subject to reasonable notice.

B. Generated Data Review: Contractor shall track and disclose the quality of the Generated Data of any GenAI in relation to this Contract, using suitable metrics and methods to measure the accuracy, relevance, and bias of the output over time. Contractor shall share such metrics and methods, as well as the underlying output, with the Lottery upon request by the Lottery or at periodic intervals as agreed upon by the Parties. The Lottery retains the right to audit, review, or investigate the quality of the Generated Data at any time, subject to reasonable notice.

C. Generated Data Identification: Contractor shall ensure that all Generated

Data that materially impacts deliverables created pursuant to the Contract contains a digital watermark or other digital identification that clearly identifies that the Generated Data was created by GenAI. Contractor shall comply with all other applicable laws, regulations, and guidelines concerning the identification of Generated Data.