Tech & Sourcing @ Morgan Lewis

TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
As AI continues to reshape technology transactions, deal lawyers have been compelled to revisit longstanding allocations of risk, revisit boilerplate, and develop new contracting mechanics to address novel uncertainty. While the core goals of technology deals remain the same—facilitating commercial outcomes and protecting the business—AI introduces distinctive pressure points across intellectual property, data, regulatory exposure, and liability frameworks.
As technology transactions continue to evolve rapidly, staying ahead of trends, innovations, and regulatory shifts is crucial. Join our Tech & Sourcing Webinar Series on January 22 at 12:00 pm ET/11:00 am CT for an insightful discussion on Tech Transactions: The Year Ahead. This session, featuring Doneld G. Shelkey, Marina G. Aronchik, and A. Benjamin Klaber, will delve into developments in artificial intelligence, data-driven deals, and new sourcing models, providing key insights to help navigate the changing landscape in 2026.
Kari Krusmark, a partner in our technology transactions, outsourcing, and commercial contracts practice, is a leading advisor in complex technology initiatives, outsourcing arrangements, and digital transformation projects. With deep background guiding global companies through high-value technology deals, evolving regulatory requirements, and vendor ecosystem shifts, Kari has a unique perspective on how organizations should prepare for the rapidly changing technology and outsourcing landscape. Her insights highlight the key trends shaping 2026 and what businesses should be doing now to stay ahead.
The UAE and Saudi Arabia have rapidly transformed into two of the most dynamic technology markets in the world. Driven by ambitious national strategies—Dubai’s digital-first initiatives and Saudi Arabia’s Vision 2030—both countries are positioning themselves as regional leaders in artificial intelligence, cybersecurity, fintech, cloud computing, and smart infrastructure. Despite extraordinary public-sector investment and momentum, the path to sustained innovation and commercialization is shaped by a mix of high-value opportunities and structural challenges.
One of the key concepts in contracting for generative AI (GenAI) is allocating rights to data that the GenAI tool processes and generates, as well as any data used to train, test, and improve the underlying AI model. A new concern in these contracts relates to the use of a GenAI tool (or data generated by this tool) for competitive purposes and corresponding contractual restrictions. This blog post outlines some of the relevant considerations when evaluating and negotiating contractual provisions relating to these data rights and use restrictions.
Our Morgan Lewis colleagues recently wrote on the US administration’s new artificial intelligence action plan, specifically as the plan seeks to foster innovation and expedite the development of AI data centers and the necessary energy infrastructure required for such expansion.
In an era when data is everything, everywhere, all at once and computation has almost no limit, ensuring privacy while leveraging data analytics is paramount. The US Department of Commerce’s National Institute of Standards and Technology (NIST) recently published NIST Special Publication 800-226 (the Guidelines), a comprehensive guide for evaluating and achieving differential privacy, a cutting edge approach to protecting individual privacy when using and relying on large datasets.
A new Insight published by our Morgan Lewis colleagues highlights the complex legal landscape data centers face in the United States, particularly concerning cybersecurity, privacy, and national security. Cybersecurity preparedness and data privacy are now a critical focus for data centers. However, unlike Europe, the US lacks a comprehensive data privacy statute, requiring data centers to navigate a patchwork of federal, state, and industry-specific regulations.
Cyber regulations are crucial for the protection of individuals and businesses and aid in risk minimization; failure to comply with these regulations can result in severe consequences such as financial penalties, legal action, reputational damage, and potential breach of sensitive or confidential information. Analysts have identified some key cyber regulations to watch in the coming months.
During the Biden administration, there was a push to prioritize and modernize cybersecurity responses, and the National Institute of Standards and Technology (NIST) agreed to work with the technology industry to develop a new cybersecurity framework. Now, those promises have come to fruition as NIST has provided updated industry-leading guidance in the cybersecurity field.