As of 13 August 2026, AI can only partly draft a software licence agreement for the UK.

What to actually do

1. Hand it to a person

   The route this page recommends

   Someone with a licence or accountable authority has to sign this before it counts.

2. Use a tool built for this

   Second choice

3. Do it yourself

   The distant third

   A chat interface, power-user skill, and roughly 2 hours until you can act on the result.

   How to actually do it

   1. Open a document containing the software description, current pricing, support commitments, intellectual property ownership, data flows and details of the proposed customer and supplier.
   2. Gather the legal names, company numbers and registered addresses of both parties, then collect the licence scope, users, locations, devices, term, renewal rules and permitted purpose.
   3. Decide the commercial points before drafting, including fees, VAT treatment, payment dates, service levels, implementation duties, termination rights, exit assistance and the intended liability position.
   4. List every type of personal data, hosting location, sub-processor and international transfer involved, and note whether the licensee or licensor determines the purpose of processing.
   5. Paste the gathered information into the prompt and run it in a chatbot or a purpose-built contract drafting tool, requiring [TO CONFIRM] wherever the facts or decision are missing.
   6. Copy the draft into a working document and compare every party detail, price, date, licence restriction, service level and data-processing statement against your source documents.
   7. Send the draft, assumptions, risk table and supporting documents to a UK solicitor, asking them to check enforceability, data protection, intellectual property, liability, termination and any sector-specific requirements before anyone signs.

   Prompt

   Draft a software licence agreement for a UK business using the information below. Treat this as a working draft, not professional advice. Use plain British English and do not invent any facts, legal requirements, prices, dates or missing terms. Where information is missing, insert [TO CONFIRM] and explain why it matters.
   
   Parties:
   - Licensor: [LEGAL NAME, COMPANY NUMBER AND ADDRESS]
   - Licensee: [LEGAL NAME, COMPANY NUMBER AND ADDRESS]
   
   Software and licence:
   - Software name and description: [DETAILS]
   - Licence type: [FOR EXAMPLE, NON-EXCLUSIVE, LIMITED, NON-TRANSFERABLE]
   - Permitted users, locations and devices: [DETAILS]
   - Licence term and renewal: [DETAILS]
   - Permitted purpose: [DETAILS]
   - Restrictions: [DETAILS]
   - Supplier access, updates and support: [DETAILS]
   
   Commercial terms:
   - Fees, VAT treatment and payment dates: [DETAILS]
   - Service levels or availability commitments: [DETAILS]
   - Hosting and implementation responsibilities: [DETAILS]
   
   Risk and compliance:
   - Ownership of the software and customer data: [DETAILS]
   - Confidentiality requirements: [DETAILS]
   - Personal data processed, roles of the parties and any sub-processors: [DETAILS]
   - Security commitments: [DETAILS]
   - Warranties and exclusions: [DETAILS]
   - Liability cap and excluded losses: [DETAILS]
   - Indemnities: [DETAILS]
   - Termination rights and exit assistance: [DETAILS]
   - Governing law and courts: [DETAILS]
   
   Produce, in order:
   1. A complete working draft with numbered clauses and a schedule for the software, fees and service levels.
   2. A short list of assumptions and every [TO CONFIRM] item.
   3. A risk table showing the clause, the business decision needed, and why a UK solicitor should check it.
   4. A list of documents or technical facts I should gather before sending the draft to a solicitor.
   Do not describe the draft as legally compliant or ready to sign. Flag any issue involving data protection, consumer users, open-source components, sector regulation, international transfers, unusual liability, or rights to customer data.

   Open it prefilled in ChatGPT or Claude, or copy it into Gemini, which takes no prefill link.