AI Terms

(Supplemental Terms for Artificial Intelligence Features)

Effective Date: 15 January 2026
Version: 1.0

1. Introduction and Scope

1.1 Purpose

These AI Terms ("AI Terms") supplement the YBServe Terms and Conditions ("Main Terms") and govern your use of artificial intelligence and machine learning features ("AI Features") within the YBServe platform ("Service"). These AI Terms form part of the agreement between you and YBServe Solutions (SSM Registration No: 202603018067 (NS0318440-A)), a business registered in Malaysia ("YBServe", "we", "us", "our").

1.2 Relationship to Main Terms

These AI Terms should be read in conjunction with the Main Terms, Privacy Policy, and Data Processing Agreement. In the event of any conflict between these AI Terms and the Main Terms regarding AI Features, these AI Terms shall prevail. Capitalised terms not defined herein have the meanings given in the Main Terms.

1.3 Acceptance

By using AI Features, you agree to be bound by these AI Terms. If you do not agree to these AI Terms, you should not use AI Features, though you may continue to use other parts of the Service.

2. Definitions

In these AI Terms, unless the context otherwise requires:

• "AI Features" means all artificial intelligence and machine learning functionalities provided as part of the Service, including but not limited to automated classification, categorisation, sentiment analysis, summarisation, and reporting.
• "AI Input" means any data, text, images, documents, or other content provided by you or on your behalf that is processed by AI Features.
• "AI Output" means any classifications, predictions, summaries, suggestions, recommendations, or other results generated by AI Features based on AI Input.
• "AI Provider" means any third-party provider of artificial intelligence or machine learning services engaged by YBServe to deliver AI Features.
• "Automated Decision" means any decision made solely by automated means without human involvement.
• "Smart Hybrid System" means YBServe's intelligent routing system that directs AI Input to the most appropriate AI Provider based on content type and cost efficiency.

3. Description of AI Features

3.1 Available AI Features

The Service currently includes the following AI Features:

3.1.1 Issue Classification

Automatically categorises citizen issues into predefined categories (e.g., Infrastructure, Social Welfare, Administrative, Environmental) and subcategories to facilitate efficient issue routing and resolution.

3.1.2 Priority Assessment

Analyses issue content to suggest appropriate priority levels (Urgent, High, Medium, Low) based on factors such as safety implications, number of affected individuals, and urgency indicators.

3.1.3 Sentiment Analysis

Evaluates the emotional tone of issue submissions to identify citizen sentiment (Positive, Neutral, Negative, Critical) and help staff prioritise responses appropriately.

3.1.4 Issue Summarisation

Generates concise summaries of lengthy issue descriptions to enable quick comprehension by staff members.

3.1.5 Automated Reporting

Produces analytical reports and insights based on aggregated issue data, including trend analysis, category breakdowns, and performance metrics.

3.2 Smart Hybrid System

YBServe employs a Smart Hybrid System that intelligently routes AI processing:

• Text-only issues are processed by OpenAI GPT-4o mini for cost efficiency;
• Issues containing images are processed by Anthropic Claude 3.5 Haiku for multimodal analysis;
• This approach optimises both accuracy and cost-effectiveness.

4. AI Providers

4.1 Current AI Providers

We currently engage the following AI Providers to deliver AI Features:

4.2 Data Handling by AI Providers

Our agreements with AI Providers require them to:

• Process AI Input only as necessary to provide the AI functionality requested;
• Not use AI Input to train, improve, or develop their general-purpose AI models;
• Not retain AI Input longer than necessary for processing (typically deleted within 30 days);
• Implement appropriate security measures to protect AI Input;
• Not share AI Input with third parties except as necessary for service delivery.

4.3 Changes to AI Providers

We may change AI Providers from time to time to improve service quality or reduce costs. We will notify Customers of material changes to AI Providers through our website or by email. Continued use of AI Features after such notification constitutes acceptance of the change.

5. Your Responsibilities

5.1 Appropriate Use

When using AI Features, you agree to:

• Use AI Features only for their intended purpose of constituency management;
• Not attempt to manipulate or circumvent AI Features;
• Not use AI Features to process data that violates our Acceptable Use Policy;
• Not use AI Features to generate harmful, discriminatory, or unlawful content;
• Review AI Output before taking action, especially for sensitive matters.

5.2 Human Oversight

You acknowledge and agree that:

• AI Output is advisory only and does not replace human judgement;
• You are responsible for reviewing and verifying AI Output;
• Final decisions regarding citizen issues must be made by authorised human personnel;
• You should not rely solely on AI Output for decisions that may significantly affect individuals.

5.3 Data Quality

You are responsible for ensuring that AI Input:

• Is accurate, complete, and lawfully obtained;
• Does not contain malicious content designed to manipulate AI systems;
• Complies with applicable data protection laws, including obtaining necessary consents.

6. AI Limitations and Disclaimers

6.1 Nature of AI

You acknowledge that AI Features:

• Use statistical and probabilistic models that may produce errors;
• May not perform equally well across all types of content or use cases;
• May reflect biases present in training data;
• Are not capable of understanding context in the same way humans do;
• May produce different outputs for similar inputs;
• Are continuously evolving and may change over time.

6.2 No Guarantee of Accuracy

WE DO NOT GUARANTEE THE ACCURACY, COMPLETENESS, RELIABILITY, OR SUITABILITY OF AI OUTPUT FOR ANY PARTICULAR PURPOSE. AI OUTPUT MAY CONTAIN ERRORS, INACCURACIES, OR INAPPROPRIATE CONTENT.

6.3 No Professional Advice

AI Output does not constitute legal, medical, financial, or other professional advice. You should consult appropriate professionals before making decisions based on AI Output.

6.4 Evolving Technology

AI technology is rapidly evolving. We may update, modify, or replace AI Features at any time to improve performance, address issues, or comply with legal requirements. Such changes may affect AI Output.

7. Data and Privacy

7.1 Data Processing

When you use AI Features:

• AI Input is transmitted to our AI Providers for processing;
• AI Providers may temporarily store AI Input for processing purposes;
• AI Output is returned to YBServe and stored in your account;
• We retain logs of AI Feature usage for quality assurance and troubleshooting.

7.2 Data Minimisation

We implement data minimisation principles by:

• Sending only necessary data to AI Providers;
• Excluding sensitive metadata where possible;
• Using structured prompts that focus on the classification task.

7.3 Cross-Border Transfers

AI Input may be transferred to AI Providers located outside Malaysia (currently the United States). By using AI Features, you consent to such transfers, subject to the safeguards described in our Privacy Policy and Data Processing Agreement.

7.4 No Training on Your Data

Our AI Providers are contractually prohibited from using AI Input to train their general-purpose AI models. Your data remains your data.

8. Intellectual Property

8.1 Ownership of AI Input

You retain all rights, title, and interest in and to your AI Input. By using AI Features, you grant us a limited licence to process AI Input solely for the purpose of providing AI Features to you.

8.2 Ownership of AI Output

Subject to our intellectual property rights in the underlying AI Features and Service:

• AI Output generated from your AI Input belongs to you;
• You may use AI Output for your internal business purposes;
• We retain no ownership claims over AI Output specific to your data.

8.3 AI Features IP

The AI Features, including all algorithms, models, and related technology, are owned by us or our licensors. Nothing in these AI Terms transfers any ownership rights in the AI Features to you.

9. Liability

9.1 Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, WE SHALL NOT BE LIABLE FOR ANY LOSS OR DAMAGE ARISING FROM:

• Inaccuracies, errors, or omissions in AI Output;
• Decisions made based on AI Output;
• Unavailability or interruption of AI Features;
• Changes to AI Features or AI Providers;
• Actions or omissions of AI Providers.

9.2 Exclusion of Consequential Damages

IN NO EVENT SHALL WE BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES ARISING FROM YOUR USE OF AI FEATURES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS, DATA, OR GOODWILL.

9.3 Your Responsibility

You are solely responsible for:

• Verifying and validating AI Output before use;
• Decisions made based on AI Output;
• Ensuring appropriate human oversight;
• Compliance with applicable laws in your use of AI Features.

10. Compliance and Ethics

10.1 Our Commitment

We are committed to the responsible development and deployment of AI. We endeavour to:

• Use AI Features that are designed to be fair and unbiased;
• Monitor AI Output for potential issues;
• Address reported concerns about AI behaviour;
• Be transparent about AI capabilities and limitations;
• Comply with applicable laws and regulations regarding AI.

10.2 Reporting Issues

If you encounter AI Output that appears to be inaccurate, biased, or inappropriate, please report it to us at ai-feedback@ybserve.com. We take all reports seriously and will investigate accordingly.

10.3 Regulatory Compliance

AI Features are designed to comply with applicable Malaysian laws. However, as AI regulation continues to evolve, we may need to modify AI Features to ensure ongoing compliance.

11. Term and Termination

11.1 Term

These AI Terms are effective from the date you first use AI Features and continue until terminated.

11.2 Termination

We may suspend or terminate your access to AI Features if:

• You violate these AI Terms;
• Your subscription to the Service is terminated;
• We are required to do so by law or by an AI Provider;
• We decide to discontinue AI Features.

11.3 Effect of Termination

Upon termination:

• Your right to use AI Features will immediately cease;
• We will retain AI Output in accordance with our data retention policies;
• Provisions that should survive termination will survive.

12. General Provisions

12.1 Updates to AI Terms

We may update these AI Terms from time to time. We will notify you of material changes by posting the updated AI Terms on our website or by email. Continued use of AI Features after such notice constitutes acceptance.

12.2 Severability

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

12.3 Governing Law

These AI Terms shall be governed by and construed in accordance with the laws of Malaysia.

13. Contact Us

If you have any questions about these AI Terms or AI Features, please contact us:

— END OF AI TERMS —