Tech & Sourcing @ Morgan Lewis

One of the commonly advertised features of AI is that it is beneficial for automation and increasing productivity. When a company considers improving its productivity and employing an AI tool, it will typically go through a contracting process with the service provider and assess the terms of use and associated risks for the business. But what happens if an employee presses on and starts using an AI tool that was not vetted by the company?

As we continue to see AI steadily and increasingly be incorporated into service offerings, businesses should pay special attention to previously “standard” provisions when contracting for the provision and use of services that incorporate AI. This is especially true considering there may be situations where service providers use AI at some point in the workstream without the recipient even realizing.

Please join us for another Morgan Lewis Technology Marathon event. In this webinar, partner Doneld Shelkey and associate Jesse Taylor will explore the legal and technology issues that arise in the sports industry in connection with the use of artificial intelligence, digital sponsorships for events and in stadiums, and data security and personal privacy. They will be joined by Cameron Hammel, counsel at the Boston Red Sox.

A significant number of legacy software solutions are now incorporating generative artificial intelligence (GenAI), and most new software solutions have some form of GenAI capabilities. This is true across the majority of, if not all, industries and, as such, it is not surprising that we are seeing a large increase in GenAI-related queries from businesses that use, or are procuring, software.

Please join us for another Morgan Lewis Technology Marathon event.

Please join us for our upcoming Automotive Hour webinar on Technology Transactions, Outsourcing, and Commercial Contracts in the Automotive Sector.

Please join us on Thursday, May 16, 2024 from 2:00–3:00 pm ET as partners Amanda Robinson and David Plotinsky discuss recent increased US congressional attention on technology companies. This will include discussion of the rise in investigations/interest in artificial intelligence (AI), electric vehicles, green technology, and investments into or from technology companies with China ties, as well as practical tips on responding to a congressional letter or subpoena.

Please join us on Monday, May 13, 2024 at 12:00–1:00 pm ET as partners Steven Stone, Mike Pierides and Kristin Lee cover the latest US, UK, and European financial services regulatory expectations regarding artificial intelligence (AI). The discussion will include AI policies, procedures, third-party risk management, AI technology governance, and risk factor disclosures.

Our Technology Marathon, now in its 14th year, is an annual series of webinars tailored to explore pivotal topics, trends, and developments in the technology sector. These webinars are designed to inform and benefit our clients and colleagues.

This blog is the finale to our Cracking AI and Outsourcing Conundrums series, a series in which we’ve discussed thought-provoking topics and set the stage for dynamic discussions with outsourcing customers and providers on the opportunities and risks of generative AI (GenAI) solutions in the outsourcing space. In this Part 4, we examine certain top-of-mind issues arising in connection with ownership and use rights when leveraging GenAI.