AI Features Policy

April 21, 2026

v3.0

1. Introduction and Scope

This AI Features Policy (this “AI Features Policy”) governs your use of artificial intelligence and machine learning functionality made available through the Handbid Platform (“AI Features”). This AI Features Policy supplements and is incorporated into the Handbid Master Services Agreement (the “Agreement”). Capitalized terms not defined in this AI Features Policy have the meanings given in the Agreement.

AI Features are optional. You must affirmatively enable AI Features through the Handbid Platform settings. By enabling AI Features, you agree to be bound by this AI Features Policy.

2. Description of AI Features

Handbid AI Features currently include:

2.1 Image Enhancement Tools

AI-assisted tools for optimizing auction item images, including:

Auto-resizing to fit platform display requirements and various device formats
Smart cropping and composition adjustments
Background removal and replacement
Quality enhancement and image optimization

2.2 Content Generation Tools

AI-powered text generation that applies Handbid-provided prompt templates to help you create:

Auction item descriptions
Marketing and promotional copy
Event communications and donor outreach materials

Content generation uses prompt templates that you select from Handbid’s library. These templates provide tone, style, or persona instructions (for example, “describe as a food critic” or “write in a formal, elegant tone”). The AI Feature applies your selected prompt template together with information you provide about the item or event to generate suggested content.

You are responsible for reviewing, editing, and approving all AI-generated content before use.

2.3 Customer Support Chatbot

AI-powered conversational assistance for communications between you and Handbid’s support team. This AI Feature assists with:

Platform questions and how-to guidance
Account and subscription support
Event setup and management assistance

Note: AI chatbot features are currently available only for communications between Customers and Handbid. AI chatbot features are not available for bidder-facing or donor-facing communications.

3. Third-Party AI Service Providers

3.1 Use of Third-Party Providers

Handbid provides AI Features through partnerships with third-party AI service providers (such as OpenAI, Anthropic, or similar providers). By using AI Features, you acknowledge that:

Content and data you submit to AI Features may be processed by third-party AI service providers
Data is transmitted to these providers using industry-standard encryption (TLS 1.2 or greater)
Handbid maintains contractual agreements with all AI service providers governing data handling, security, and confidentiality

3.2 Data Retention by Third-Party Providers

Content submitted to AI Features is processed for the purpose of generating Outputs. Our third-party AI service providers retain such content only for the time necessary to process requests and deliver Outputs, after which it is deleted in accordance with our contractual agreements.

3.3 Subprocessor List

A current list of AI service providers (subprocessors) used for AI Features is available upon request by contacting support@handbid.com.

4. Customer Data Handling and Privacy

4.1 What Customer Data AI Features Process

Depending on the AI Feature used, the following types of data may be processed:

AI Feature	Customer Data Processed
Image Enhancement	Images you upload for optimization
Content Generation	Item details, event information, and other content you provide, combined with your selected prompt template
Support Chatbot	Your support inquiries and related account context

4.2 No Training on Customer Data

Handbid does not use your Customer Data to train AI models. Our contractual agreements with third-party AI service providers prohibit the use of Customer Data for model training purposes. Your content is used solely to generate Outputs in response to your requests.

4.3 Sensitive Data Restriction

You agree not to submit the following types of sensitive information to AI Features:

Social Security numbers, government identification numbers, or financial account credentials
Protected health information (PHI) or medical records
Payment card numbers (other than through Handbid’s designated secure payment processing)
Data revealing racial or ethnic origin, political opinions, religious beliefs, or sexual orientation
Passwords, authentication credentials, or security codes

4.4 Relationship to Privacy Policy

To the extent Customer Data contains any personal information, use of the AI Features is also subject to Handbid’s Privacy Policy.

5. Ownership of Inputs and Outputs

5.1 Your Inputs

You retain all ownership rights to content, images, data, and other materials you submit to AI Features (“Inputs”). Handbid’s use of your Inputs is limited to:

Providing AI Features and generating Outputs
Improving AI Features and the Handbid Platform
Complying with applicable law

5.2 AI-Generated Outputs

As between you and Handbid, you own all content generated by AI Features based on your Inputs (“Outputs”), subject to the following:

You may use Outputs for any lawful purpose, including commercial purposes such as marketing, fundraising, and event promotion
Outputs may not be unique --- AI Features may generate similar or identical outputs for other customers using similar inputs or prompts
Handbid does not claim ownership of Outputs and does not assert copyright over AI-generated content
Outputs may incorporate or be derived from content in which third parties hold rights; you are responsible for ensuring your use of Outputs does not infringe third-party rights or violate applicable laws

5.3 No Guaranteed Intellectual Property Protection

Due to the nature of AI-generated content and evolving legal standards, Handbid makes no representation that Outputs are eligible for copyright protection or other intellectual property rights in any jurisdiction.

6. Your Responsibilities

6.1 Review and Approval

You are solely responsible for reviewing, verifying, editing, and approving all AI-generated Outputs before use. AI Features may produce content that is:

Inaccurate, incomplete, or factually incorrect
Inappropriate for your intended purpose or audience
Inconsistent with your organization’s voice, brand, or messaging standards

You must not publish, distribute, or rely upon AI-generated content without human review and approval.

6.2 Compliance with Law

You are responsible for ensuring that your use of AI Features and all Outputs complies with:

All applicable federal, state, and local laws and regulations
The Handbid Master Services Agreement and Acceptable Use Policy
Third-party intellectual property rights
Industry-specific requirements applicable to your organization (including nonprofit regulations, charitable solicitation laws, and donor privacy requirements)

6.3 Transparency in AI-Generated Content

When using AI-generated content in donor-facing communications, marketing materials, or public-facing contexts:

You should not misrepresent AI-generated content as solely human-created where such misrepresentation would be deceptive
Where required by applicable law, you must disclose that content was generated with AI assistance

6.4 Account Security

You are responsible for maintaining the security of your Handbid account credentials. Any use of AI Features through your account is deemed authorized by you.

7. Prohibited Uses

You may not use AI Features, nor permit others to use AI Features, for the following purposes:

7.1 Unlawful or Harmful Content

Generating content that is unlawful, fraudulent, deceptive, or misleading
Creating content that infringes or misappropriates third-party intellectual property rights
Producing content that harasses, threatens, defames, or promotes violence against any person or group
Generating content that exploits minors or facilitates illegal activity

7.2 Misrepresentation and Fraud

Creating content that impersonates individuals, organizations, or public figures without authorization
Generating fake testimonials, endorsements, reviews, or donor statements
Producing misleading financial information, false charitable claims, or deceptive fundraising materials
Creating content intended to deceive recipients about its origin or nature

7.3 Spam and Abuse

Generating bulk unsolicited communications or spam
Circumventing usage limits or rate limits through technical means
Interfering with or disrupting the operation of AI Features or the Handbid Platform

7.4 Competitive or Reverse Engineering Uses

Using AI Features to develop products or services that compete with Handbid
Attempting to reverse engineer, extract, or derive training data, algorithms, or models from AI Features
Reselling, sublicensing, or providing AI Features to third parties outside your authorized use

7.5 High-Risk Decisions

Making automated decisions with legal, financial, bid offer or acceptance, dynamic pricing, or similarly significant effects on individuals without appropriate human oversight
Using AI Features as a substitute for professional legal, financial, tax, or medical advice

8. Disclaimers and Limitations

8.1 No Warranty

AI FEATURES ARE PROVIDED “AS IS” AND “AS AVAILABLE.” TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, HANDBID DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

HANDBID DOES NOT WARRANT THAT:

AI FEATURES WILL MEET YOUR REQUIREMENTS OR EXPECTATIONS
AI FEATURES WILL BE UNINTERRUPTED, TIMELY, SECURE, OR ERROR-FREE
OUTPUTS WILL BE ACCURATE, COMPLETE, RELIABLE, OR FIT FOR ANY PARTICULAR PURPOSE
ANY ERRORS IN AI FEATURES WILL BE CORRECTED

8.2 No Professional Advice

AI Features do not provide, and Outputs should not be construed as, legal, financial, tax, accounting, or other professional advice. You should obtain independent professional advice before acting on AI-generated content in any professional or regulated context.

8.3 Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, HANDBID SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR ANY LOSS OF PROFITS, REVENUE, DATA, OR USE, ARISING OUT OF OR RELATED TO YOUR USE OF AI FEATURES, EVEN IF HANDBID HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

HANDBID’S TOTAL LIABILITY FOR ANY CLAIMS ARISING OUT OF OR RELATED TO AI FEATURES SHALL NOT EXCEED THE FEES PAID BY YOU TO HANDBID SPECIFICALLY FOR THE RELEVANT AI FEATURES DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM, OR ONE HUNDRED DOLLARS ($100), WHICHEVER IS GREATER.

8.4 Indemnification

You agree to indemnify, defend, and hold harmless Handbid and its officers, directors, employees, and agents from and against any claims, liabilities, damages, losses, and expenses (including reasonable attorneys’ fees) arising out of or related to: (a) your use of AI Features; (b) your Outputs; (c) your violation of this AI Features Policy; or (iv) your violation of any third-party rights or applicable law.

9. Usage Limits

9.1 Plan-Based Limits

AI Features may be subject to usage limits based on your subscription plan. Current limits are displayed in your Handbid account settings.

9.2 Fair Use

Handbid reserves the right to:

Impose, modify, or enforce usage limits at any time
Suspend, throttle, or restrict access to AI Features if usage patterns negatively affect Handbid Platform performance or other customers
Offer additional usage capacity for purchase

9.3 Availability

AI Features depend on third-party AI service providers. Handbid does not guarantee uninterrupted availability of AI Features and is not liable for any downtime or service interruptions caused by third-party providers.

10. Modifications to This AI Features Policy

Handbid may update this AI Features Policy at any time by posting the revised version at handbid.com/ai-policy. The “Effective Date” at the top of this AI Features Policy indicates when the most recent changes were made.

Your continued use of AI Features after changes become effective constitutes your acceptance of the updated AI Features Policy. If you do not agree to the updated AI Features Policy, you must discontinue use of AI Features.

11. Termination

11.1 Termination by You

You may stop using AI Features at any time by disabling them in the Handbid Platform settings.

11.2 Termination by Handbid

Handbid may suspend or terminate your access to AI Features immediately if:

You breach this AI Features Policy or the Handbid Master Services Agreement
Required by law or legal process
Continued provision of AI Features to you poses a security risk or may cause harm to Handbid, other customers, or third parties

11.3 Effect of Termination

Upon termination, your right to use AI Features ceases immediately. Sections 5 (Ownership of Inputs and Outputs), 8 (Disclaimers and Limitations), and 11.3 (Effect of Termination) survive termination.

12. General Provisions

12.1 Entire Agreement

This AI Features Policy, together with the Handbid Master Services Agreement and any other policies incorporated by reference, constitutes the entire agreement between you and Handbid regarding AI Features.

12.2 Severability

If any provision of this AI Features Policy is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

12.3 Waiver

Handbid’s failure to enforce any provision of this AI Features Policy shall not constitute a waiver of that provision or any other provision.

12.4 Governing Law

This AI Features Policy shall be governed by and construed in accordance with the laws specified in the Handbid Master Services Agreement.

13. Contact Information

Handbid Support Email: support@handbid.com Website: handbid.com/support

For privacy-related inquiries: service@handbid.com