AI Law & Compliance in Iran helps businesses identify the legal issues that arise when they develop, purchase or use artificial intelligence. PAD International Group supports Iranian companies, overseas businesses working with Iranian partners and technology teams with AI contracts, data-use reviews, intellectual property questions and practical governance documents. The starting point is your actual product and business activity, rather than a generic compliance checklist.
Who is this service for?
This service is relevant to software developers integrating third-party models, online businesses introducing customer-service chatbots, employers considering AI-assisted workflows and investors assessing a technology supplier. It can also help an established company whose staff already use generative AI without clear internal rules. We review the project’s connections with Iran and identify the jurisdictions and specialist advice that may also be relevant.
What does AI Law & Compliance cover?
AI contracts and procurement. Before signing with a developer or model provider, clarify the promised functionality, acceptance tests, permitted uses and ongoing support. We review provisions on confidential inputs, training on customer data, subcontracting, security incidents, service changes, termination and access to records. Liability caps, indemnities and dispute clauses should reflect the project’s commercial risks and the applicable law.
Data use and confidentiality. A useful review starts with an inventory: what enters the system, where it comes from, who can access it and where it is stored. We assess the proposed use of customer, employee and other personal information, together with contractual confidentiality commitments. Public availability of information should not be treated as automatic permission to reuse it for every AI purpose.
Intellectual property and commercial control. We examine rights in source materials, datasets, software, prompts and deliverables. The engagement distinguishes ownership claims from licences, confidentiality restrictions and contractual rights of use. A supplier’s promise about output ownership does not itself establish that every output attracts copyright protection or is free from third-party claims.
Internal policies and accountability. We help define approved tools, prohibited inputs, human review responsibilities and escalation procedures. A practical policy should explain what employees may upload, when they must verify a result and who approves external publication. Depending on scope, we can prepare an AI-use policy, supplier questionnaire, decision register or staff training materials.
The Iranian legal context
AI projects need a review of the rules relevant to their activities. Iran’s Electronic Commerce Act addresses electronic records and transactions as well as particular questions concerning personal data, intellectual property and trade secrets. For example, Articles 58–59 address specified personal-data processing issues in electronic transactions, while Articles 64–65 concern electronic trade secrets. Their application depends on the facts and statutory scope; they should not be presented as a complete AI compliance framework.
Our assessment also identifies which contractual, intellectual property, consumer, sector-specific or other requirements need further examination. We check the relevant Persian legal texts and any applicable changes for the particular engagement. An English translation is a useful reference, but it does not replace analysis of the authoritative law.
Cross-border AI projects involving Iran
A project connected with Iran may also involve customers, suppliers or infrastructure abroad. We map the parties, markets, data flows and proposed transactions before recommending a contractual structure. Where sanctions, export controls, payment restrictions or provider availability may affect the project, these issues require a separate assessment before implementation. A contract cannot make an otherwise prohibited transaction permissible.
The EU AI Act can reach certain providers and deployers outside the EU under its territorial scope rules. An Iranian connection alone neither establishes nor excludes its application. We consider the relevant market and use of outputs, the business’s role, applicable exceptions and the rules in force at the assessment date. Specialist local advice is coordinated when the assignment requires it.
A practical example: introducing a customer-service chatbot
Suppose an Iranian business wants a chatbot to answer customer questions using previous support messages. Before launch, it should examine whether the messages contain personal or confidential information, whether the proposed reuse is permitted and whether the supplier retains inputs or uses them for training. The contract should define security and deletion arrangements, escalation to a human and responsibility for inaccurate answers. This is an illustrative scenario, not a report of a client matter.
What you receive
Deliverables are agreed in writing. Depending on your needs, they may include a project-specific legal risk note, a prioritised action plan, a marked-up AI supplier agreement, an internal AI-use policy and a handover discussion. We distinguish urgent changes from longer-term improvements and identify questions that require technical testing or another jurisdiction’s adviser. Legal review is not a security audit, model certification or guarantee of regulatory approval.
How the engagement works
1. Initial scope: explain your product, its users, relevant countries and deadlines. 2. Document review: share the agreed information through an appropriate channel after engagement arrangements are in place. 3. Assessment and drafting: we analyse the defined issues and prepare the agreed documents. 4. Handover: we explain priorities, responsibilities and any follow-up work. Fees and third-party costs are set out in the proposal.
Frequently asked questions
Can you review an AI contract before we sign it?
Yes, subject to suitability and an agreed scope. Send a brief description of the transaction first, including the parties’ countries, the contract type and any signing deadline. Confidential documents should follow through the agreed channel.
Do small companies need an AI-use policy?
A proportionate policy can be useful even for a small team. The key questions are which tools staff use, what information they enter and how outputs affect customers or business decisions. The policy should fit those risks.
Does this service include technical testing or certification?
No. Technical testing, cybersecurity work and certification are separate activities. Where required, the legal review identifies what technical evidence or specialist input the business should obtain.
Can an overseas company request support remotely?
Yes. Initial discussions and much document-based work can take place remotely, subject to identity checks, conflicts, suitability and any legal or practical restrictions relevant to the assignment.
Plan the legal review around your AI launch
Start with the decision your team needs to make: signing a model-provider agreement, using customer data, approving an internal AI tool or releasing a product. A short description of the use case, data sources and launch stage helps us identify the right review. You do not need to share source code or confidential datasets in the first enquiry. Arrange an AI project scoping discussion.
Legal references
Iran’s Electronic Commerce Act — WIPO Lex; EU AI Act — EUR-Lex. General information, reviewed 15 October 2026. Advice depends on the facts, applicable law and agreed engagement.