Unlocking AI and Outsourcing: Strategies for Success

In today’s dynamic business landscape, outsourcing has become an indispensable tool for organizations seeking to streamline operations, cut costs, and access specialized expertise. Yet, as technology advances at an exponential pace, the integration of artificial intelligence (AI) into outsourcing arrangements introduces a new dimension of complexity and opportunity. From predictive analytics to virtual assistants, generative AI (GenAI) applications are reshaping traditional outsourcing models, promising unprecedented opportunities but also raising novel legal challenges.

In this roundup of a four-part series from Morgan Lewis’s Tech & Sourcing blog, we take a high-level look at the challenges of requiring outsourcing providers to drive innovation through GenAI while also complying with an outsourcing customer’s AI policies; the conundrum of balancing a company’s need for enhanced quality checks with the desire to realize savings when leveraging GenAI solutions; the complexities of determining where and how GenAI is currently being used by a company’s outsourcing provider and whether there is appropriate disclosure and understanding of such use; and certain top-of-mind issues arising in connection with ownership and use rights when leveraging GenAI.