1. Introduction and Relationship with Main Terms

1.1 These Papercare AI Terms and Conditions (“AI Terms”) govern your access to and use of all artificial intelligence features, tools, modules, and services (“Papercare AI”) made available by Papercare Working Papers Limited (“Papercare”, “we”, “us”, or “our”).

1.2 These AI Terms apply in addition to, and form part of, the Papercare General Terms and Conditions (“General Terms”). In the event of any conflict between these AI Terms and the General Terms, these AI Terms shall prevail with respect to your use of Papercare AI.

1.3 Capitalised terms not otherwise defined in these AI Terms shall have the meaning given to them in the General Terms.

2. Scope of Papercare AI

2.1 Papercare AI comprises a suite of artificial intelligence–powered modules and features designed to support accounting, tax, financial, and related professional workflows. These include, without limitation:

– Secured Chat – Ask questions and receive AI-generated responses.

– Chat with Database – Query your Microsoft SQL Server data.

– My Intelligence – Upload and analyse documents.

– My Library – Draft client communications and templates.

– Tax Expert – Generate responses using verified UK tax sources.

2.2 Papercare may enhance, modify, suspend, or discontinue any AI feature at any time. All AI Terms shall apply equally to any future modules, whether fully released, in beta, or provided as experimental features.

3. Nature of Papercare AI and AI Outputs

3.1 Papercare AI uses large language models and other machine learning technologies to generate responses, outputs, recommendations, analyses, or other materials (collectively, “AI Outputs”).

3.2 Papercare AI is an assistive tool and does not constitute accounting, legal, tax, compliance, or financial advice. Papercare AI is not a substitute for the professional judgment, skill, and expertise of a qualified accountant or adviser.

3.3 AI Outputs are generated algorithmically and may contain errors, inaccuracies, or omissions. Papercare makes no representations, warranties, or guarantees regarding the accuracy, completeness, currency, or suitability of any AI Output.

3.4 You are solely responsible for reviewing, validating, and exercising professional judgment before relying on any AI Output. All decisions and actions based on AI Outputs are taken entirely at your own risk.

3.5 Papercare AI does not and cannot guarantee compliance with accounting standards, UK tax legislation, regulatory obligations, or professional codes. You remain solely responsible for ensuring that any actions or decisions taken comply with all applicable laws, regulations, and professional standards.

3.6 No oral or written advice, recommendation, or information provided by Papercare shall create any warranty or give rise to any liability not expressly stated in these AI Terms.

4. Use of Papercare AI

4.1 You agree to:

• Use Papercare AI only for lawful business purposes and in compliance with all applicable laws and regulations.
• Review, validate, and verify all AI Outputs before using them for accounting, tax, legal, or compliance decisions.
• Accept full responsibility for any decisions, actions, or omissions made based on AI Outputs. – Not input special category personal data into Papercare AI unless strictly necessary and lawful.
• Not use Papercare AI to train, develop, or improve any other AI system or service.

4.2 Papercare reserves the right to suspend, restrict, or terminate your access to Papercare AI if we reasonably believe that misuse, unlawful activity, security risk, or violation of these AI Terms has occurred.

4.3 You are solely responsible for all prompts, data, content, and information submitted to Papercare AI.

5. Data Processing and Privacy

5.1 Papercare acts as a data processor for any personal data input into Papercare AI, and you remain the data controller. Papercare will process such data strictly in accordance with your instructions and in compliance with Data Protection Legislation.

5.2 You warrant that you have a lawful basis for processing any personal data entered into Papercare AI and that all required data subject notifications and consents have been obtained.

5.3 Papercare does not transmit, sell, or share personal data with third-party model providers unless such data is explicitly submitted into Papercare AI by you.

5.4 Where personal data is transferred outside the UK, Papercare will ensure that adequate safeguards (including UK-approved Standard Contractual Clauses) are in place.

5.5 Papercare may process anonymised and aggregated usage data to train, enhance, and improve its AI models. Such data will not identify you, your clients, or any individual data subject.

5.6 Papercare utilises third-party large language model providers, including but not limited to OpenAI and Perplexity, to deliver AI functionalities. Such providers act as sub-processors under Data Protection Legislation. Papercare ensures that such sub-processors process data strictly under Papercare’s documented instructions, and no personal data submitted by you is used to train publicly available models.

6. Automated Decision-Making and Human Oversight

6.1 Papercare AI may use automated processes to generate recommendations, classifications, or analyses. However, Papercare AI does not make legally binding or significant decisions without human involvement.

6.2 Where an automated process could have legal or significant effects, you have the right to request human intervention, express your views, and contest the outcome. Papercare will provide reasonable assistance in such cases.

7. Confidentiality

7.1 Confidential information is governed by Clause 7 of the General Terms. However, you acknowledge and agree that AI Outputs are not considered confidential, may not be unique, and may be similar or identical to outputs generated for other users.

8. Intellectual Property and Ownership of AI Outputs

8.1 Papercare retains all rights, title, and interest in and to Papercare AI, including all underlying software, models, algorithms, training data, documentation, and related intellectual property.

8.2 Subject to Clause 8.3, you retain ownership of any AI Outputs generated from your data and prompts. Papercare retains ownership of all underlying technology used to generate such outputs.

8.2A You acknowledge that AI Outputs are generated algorithmically and may not be unique to you. Papercare does not guarantee exclusivity, originality, or confidentiality of AI Outputs.

8.3 You grant Papercare a worldwide, perpetual, irrevocable, royalty-free licence to use, reproduce, and process such AI Outputs as necessary to operate, maintain, and improve the Services.

8.4 You may use AI Outputs solely for your internal business purposes and in accordance with these AI Terms. You shall not resell, sublicense, or make AI Outputs available to third parties except as necessary for your internal operations or client services.

8.5 Nothing in these AI Terms shall be construed as granting you any rights to Papercare’s intellectual property except as expressly stated.

9. Beta and Experimental AI Features

9.1 Papercare may release beta, experimental, or early-access AI features. Such features are provided “as is”, may be incomplete or inaccurate, and may be modified, suspended, or withdrawn without notice or liability.

10. Disclaimers

10.1 Papercare AI is provided “as is” and “as available” without warranties of any kind, whether express or implied, including without limitation warranties of accuracy, completeness, fitness for a particular purpose, non-infringement, availability, or data security.

10.2 Papercare does not warrant that AI Outputs will comply with accounting standards, tax legislation, or professional regulations.

10.3 Papercare does not guarantee uninterrupted operation of Papercare AI or that it will meet your specific requirements.

10.4 All reliance on AI Outputs is at your sole risk.

11. Limitation of Liability

11.1 To the fullest extent permitted by law:

• Papercare shall not be liable for any indirect, incidental, consequential, or special damages, including but not limited to loss of profits, data, business, goodwill, or opportunity.
• Papercare shall not be liable for any errors, omissions, or defects in AI Outputs or for actions taken based on them.
• Papercare’s total aggregate liability for all claims relating to Papercare AI shall not exceed the total subscription fees paid by you in the six (6) months preceding the claim.

11.2 Where Papercare AI is provided free of charge or during a trial period, Papercare shall have no liability whatsoever to you, whether in contract, tort (including negligence), or otherwise, to the maximum extent permitted by law.

11.3 Nothing in these AI Terms limits or excludes liability for death or personal injury caused by negligence, fraud, or fraudulent misrepresentation.

12. Risk Acceptance and Waiver

12.1 By using Papercare AI, you:

• Acknowledge that Papercare AI is an assistive tool and not a substitute for professional judgment.
• Accept full responsibility for your use of and reliance upon AI Outputs.
• Waive and release Papercare from all claims, demands, liabilities, or causes of action arising out of or related to your use of Papercare AI, except where liability cannot be excluded by law.

13. Dispute Resolution

13.1 Any dispute arising out of or in connection with these AI Terms shall first be addressed through good-faith negotiations. If not resolved within thirty (30) days, the dispute shall proceed to mediation and, if necessary, to binding arbitration under the LCIA Rules.

13.2 Only if arbitration fails may proceedings be brought in the courts of England and Wales.

14. Amendments

14.1 Papercare may amend these AI Terms by providing no less than thirty (30) days’ notice. Continued use of Papercare AI after such period constitutes your acceptance of the amended terms.

14.2 If you do not agree to any amendment, you must discontinue use of Papercare AI prior to the effective date of the change.

15. Governing Law and Jurisdiction

15.1 These AI Terms and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with them or their subject matter or formation shall be governed by and construed in accordance with the laws of England and Wales.

15.2 Subject to Clause 13, the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with these AI Terms or their subject matter or formation.

16. Severability and Entire Agreement

16.1 If any provision of these AI Terms is held invalid, unlawful, or unenforceable by a court or competent authority, such provision shall be severed and the remaining provisions shall continue in full force and effect.

16.2 These AI Terms, together with the General Terms and any other documents expressly incorporated by reference, constitute the entire agreement between you and Papercare in relation to your use of Papercare AI and supersede all prior agreements, understandings, and representations.