1. Introduction
The rapid proliferation of artificial intelligence (AI) tools has created unprecedented opportunities for businesses and individuals to enhance creativity, productivity, and innovation. However, the use of these powerful tools is not without its risks, particularly concerning the ownership and control of intellectual property (IP). This report provides a comprehensive analysis of the terms of service (ToS) and privacy policies of the top 50 most popular AI tools, with a specific focus on identifying potential IP-related gotchas and concerns for small to midsize businesses, individual consultants, and high net worth individuals.
Our research methodology involved identifying the top 50 AI tools based on a combination of web traffic and mobile app usage data, systematically collecting their legal documents, and analyzing them for key provisions related to content ownership, input rights, commercial usage, and the use of user data for training AI models. This report synthesizes our findings to provide a clear and actionable overview of the current landscape of IP risks in the AI industry.
2. Key Findings and Analysis
Our analysis reveals a wide spectrum of IP policies among the top AI tools, ranging from user-friendly terms that grant clear ownership to users, to more complex and concerning clauses that grant broad and perpetual rights to the AI companies. The following sections delve into the key areas of concern.
2.1. Content Ownership: Who Owns What You Create?
A fundamental question for any user of an AI tool is: who owns the output? The answer, we found, is not always straightforward. While many tools, such as ChatGPT, Perplexity AI, and Runway, explicitly state that the user owns the output they generate, others have more nuanced policies.
For example, Canva states that users own the content they create, but this ownership is subject to Canva's terms for the underlying content, such as templates and stock images. This means that while you own your unique design, you may not have full ownership of all its components, which can have implications for commercial use and redistribution.
More concerning are tools like Character.ai and Consensus, which, despite granting users ownership of their content, also require users to grant the company a broad, perpetual, and irrevocable license to use, modify, and even commercialize that content. This effectively gives the company significant control over the user's creations, a critical consideration for anyone creating proprietary or valuable content.
2.2. Input Rights: What Happens to Your Prompts and Data?
Every time you use an AI tool, you provide it with input, whether it's a text prompt, an image, or a document. The rights that AI companies claim over this input data are a major area of concern. Our research found that most AI tools require users to grant them a license to use their input to provide and improve the service.
However, the scope of this license varies significantly. Some tools, like Google's Gemini and NotebookLM, require a broad license that allows them to not only use but also modify and create derivative works from user input. This raises concerns about the confidentiality and control of sensitive or proprietary information.
In contrast, tools like n8n, Cursor, and Replit have more user-friendly policies, stating that they will not use user content for training their AI models without explicit consent. This is a crucial distinction for users who are concerned about their IP being used to train a competitor's model.
2.3. Commercial Usage: Can You Use AI-Generated Content for Your Business?
The ability to use AI-generated content for commercial purposes is a key consideration for businesses and consultants. Most of the tools we analyzed permit commercial use of the output, especially for users on paid plans. However, there are often important restrictions.
For instance, many tools, including ChatGPT and Grammarly, prohibit the use of their services to develop competing models. Remove.bg restricts commercial use to its paid plans, with the free version being strictly for non-commercial purposes. Wayground prohibits commercial activities and sales without prior written consent.
It is essential for users to carefully review the commercial usage terms of any AI tool they plan to use for business purposes to ensure they are not in violation of the terms of service.
2.4. Training Data Usage: Is Your Data Making Their AI Smarter?
The use of user data to train AI models is one of the most controversial aspects of the AI industry. Our analysis found that a majority of the top AI tools use user data for training their models. This includes both input and output content.
Some tools, such as ChatGPT, Claude, and Jasper, offer users the ability to opt out of having their data used for training. However, this opt-out is not always straightforward to find or use. Other tools, like DeepL's free version and Grammarly, use user data for training without an explicit opt-out option.
On the other hand, a growing number of tools are adopting more privacy-conscious policies. n8n, Cursor, and Consensus are examples of tools that explicitly state they do not use user data for training their AI models. For users who prioritize data privacy and IP protection, these tools represent a safer choice.
2.5. The Gotcha" Items: Hidden Risks in the Fine Print
Beyond the four main areas of concern discussed above, our research uncovered several "gotcha" items in the terms of service of popular AI tools that users should be aware of:
3. Recommendations for Businesses and Individuals
Based on our findings, we offer the following recommendations for small to midsize businesses, individual consultants, and high net worth individuals using AI tools:
4. Conclusion
The AI revolution offers immense potential for businesses and individuals, but it also presents new and complex challenges related to intellectual property. Our analysis of the top 50 most popular AI tools reveals a complex and often concerning landscape of IP policies. By understanding the risks and taking the necessary precautions, users can harness the power of AI while protecting their valuable intellectual property.
5. References
[1] Exploding Topics. (2025, August 31). 65 Most Popular AI Tools Ranked (August 2025). https://explodingtopics.com/blog/most-popular-ai-tools
[2] Backlinko. (2025, August 27). Most Popular AI Apps (2025). https://backlinko.com/most-popular-ai-apps
Note: The terms of service and privacy policy links for each tool are available in the collected data file: collect_ai_tool_legal_docs.csv.