Most services agreements for vendor-provided technology services contain standard provisions allowing vendors to use customer data and data generated through the provision of services to improve and enhance service offerings. Vendors are increasingly seeking express rights to use such data to not only improve their services but also train their AI models. While these provisions seem to be a natural extension of traditional service-improvement rights, they can have significantly broader implications. Before agreeing to such language, organizations should carefully evaluate how customer data will be used, the extent of the rights being granted, and whether the potential benefits outweigh the risks.
Tech & Sourcing @ Morgan Lewis
TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
As artificial intelligence (AI) becomes increasingly embedded in outsourced services, companies are facing a new and growing challenge: digital dependency on their vendors. Modern outsourcing relationships are no longer limited to staffing support or standardized technology platforms.
In the first post in our AI & Outsourcing series, we observed how artificial intelligence (AI) is transforming the outsourcing industry in ways that extend far beyond operational efficiency. This second post in the series discusses the need to rethink legal and commercial terms that govern outsourcing relationships, as companies increasingly incorporate AI-enabled tools and automation into outsourced services.
Digital transformation initiatives across Europe, the Middle East, and the United States are accelerating at a remarkable pace. As multinational companies expand cloud adoption, AI deployment, data-sharing ecosystems, and managed technology services across jurisdictions, technology transactions are increasingly becoming instruments of geopolitical strategy, regulatory compliance, and regional market access—not simply procurement exercises.
Welcome to the first blog in our AI and Outsourcing series, where we explore the disruptive and transformative impact of artificial intelligence (AI) on outsourcing and managed services transactions.
Join partner Ben Klaber and of counsels Ariel Seeley and Eric Pennesi on Thursday, April 9, 2026 from 12:00 to 1:00 pm ET for a discussion on innovations and trends in digital health. Topics will include artificial intelligence and connected devices, as well as data governance and regulatory developments.
We are currently witnessing a fundamental shift in the role that AI plays in enterprise operations, transitioning from a system that responds when prompted to one that plans, decides, and acts on its own. This shift has a name: agentic AI. And for business leaders and counsel advising on technology strategy, it deserves serious attention right now.
Two years ago, many technology agreements addressed artificial intelligence (AI), if at all, through a generic disclaimer or a brief acknowledgment that AI features might be included in the offering. Today, that approach is inadequate. The integration of AI into commercial products, outsourcing arrangements, and enterprise software agreements has forced a rethinking of longstanding contract frameworks.
Sports sponsorship agreements were once relatively straightforward: brand visibility in exchange for fees. This is no longer the case. Today, most meaningful sponsorships involve significant data components, whether fan engagement platforms, digital activations, or, increasingly, AI-driven analytics. As a result, these agreements are starting to look much more like technology and data contracts.
With the pace of new product releases and market buzz, artificial intelligence (AI) has crossed a line in many organizations from an experimental tool to an embedded business function. Companies are increasingly relying on third-party AI offerings to support core processes, streamline operations, automate customer support, and perform other back-office and customer-facing tasks.