Tech & Sourcing @ Morgan Lewis

Saudi Arabia’s cloud and data protection framework is substantive, cross-sectoral, and still maturing, creating a dynamic environment for technology companies entering the region. The threshold challenge is not merely identifying the applicable rules but truly understanding how multiple overlapping frameworks interact and where regulatory gaps require considered judgment in the absence of published guidance.

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.

Legal departments and contract teams are now often under pressure to move faster, provide value, and streamline processes all while contracts increase in length and complexity to address changes in technology (e.g., artificial intelligence) and laws (e.g., various privacy and regulatory requirements). The good news is that meaningful contract streamlining does not require a full rewrite or oversimplification of existing templates. Small, targeted changes can improve speed to contract, clarity of the agreement, and usability for both the legal/contract team and business team stakeholders.

ISG’s latest index highlights a technology services and software market that is increasingly defined by cloud momentum and AI-driven investment shifts. While headline growth remains strong, the underlying dynamics point to a more selective and strategic buying environment as enterprises head into 2026.

As demand for data-intensive and AI-driven workloads continues to grow, customers are increasingly encountering constraints on cloud compute resources—particularly specialized processors and region-specific capacity. These market dynamics raise a fundamental question for customers and their advisors: will the promised compute capacity actually be available when it is needed?

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 the use of generative artificial intelligence (GenAI) proliferates, customers and vendors face unique challenges in contract negotiations. This post discusses these challenges, offering viewpoints from both perspectives.

We invite you to join us for the next presentation of the Tech & Sourcing webinar series Navigating the Global Landscape Through Innovation on Thursday, December 4, 2025 at 12:00 pm ET.

The European Parliament recently published a report (the Report) on the interplay between several key EU digital regulations to assess overlap and gaps and highlight the regulatory complexity that these different regimes have collectively imposed on businesses.