Tech & Sourcing @ Morgan Lewis

Please join us for another Morgan Lewis Technology Marathon event.

As part of our Technology Marathon webinar series, partners Kristin Lee, Mike Pierides, and Steven Stone recently discussed financial regulators’ increasing focus on artificial intelligence (AI).

Worldwide IT spending is forecast to total more than $5 trillion in 2024, with 10% year-on-year growth of spending on data center systems, according to recent analysis from Gartner. The increasing adoption of artificial intelligence (AI) solutions is driving demand for technology infrastructure in order to meet greater data storage and network infrastructure requirements and more compute-intensive workloads.

We recently published a report based on our four-part series on Tech & Sourcing @ Morgan Lewis, in which we consider a number of conundrums facing companies looking to leverage artificial intelligence (AI) as part of their outsourcing arrangements. As outsourcing remains a key tool through which companies can streamline operations, cut costs, and access specialized expertise, the explosive advancements in AI and related technologies have introduced new and exciting opportunities and complexities for companies in implementing and maintaining outsourcing relationships.

The UK Competition and Markets Authority (CMA) recently published an update paper outlining its concerns with artificial intelligence (AI) foundation models (FMs). Market players in this space should remain mindful of the CMA’s growing interest as the regulator continues its dedicated program to consider the impact of FMs on markets throughout 2024, with a further update anticipated in August.

The European Council adopted the EU Data Act (the Act) on November 27, 2023, representing a major regulatory shift in cloud services and data processing. The Act’s objectives include ensuring fairness in the allocation of value from data among actors in the digital environment and making data more accessible to all in order to open opportunities for data-driven innovation.

Artificial intelligence (AI) has been rapidly transforming industries and reshaping our daily lives by ushering in unprecedented opportunities for automation—which naturally has come with some challenges. While AI’s potential is immense, the potential ethical, security, and compliance implications should be carefully examined.

In an age marked by remarkable advancements in artificial intelligence (AI), the question of how to effectively govern this rapidly evolving technology has become increasingly pressing. On August 31, 2023, a significant milestone was achieved with the publication of the Governance of Artificial Intelligence: Interim Report by the Science, Innovation and Technology Committee of the UK government (the Interim Report).

While the regulatory landscape around artificial intelligence (AI) continues to evolve, navigating contractual arrangements and apportioning risk for the use of AI may seem like stepping into the unknown. In this blog post, we consider how a few familiar concepts within commercial contracts may be applied to the provision and use of AI tools as part of services.

The first half of 2023 was one of the most active six months for legislative and regulatory developments around artificial intelligence (AI). Our colleagues recently noted the European Parliament’s adoption of a draft AI Act as well as the significant activity in the United States related to regulating AI, both at the federal and state level. AI is also increasingly giving rise to data privacy concerns.