Tech & Sourcing @ Morgan Lewis

Artificial intelligence (AI) presents big opportunities and potential risks for countries around the globe, and India is no exception. India has a vast, burgeoning high-tech labor force. The country also attracts millions of dollars in foreign direct investments, putting it on pace to become a major player in the global technology supply chain. With this growth, AI technologies are, and will, make their way into numerous Indian industries, such as healthcare, technology, the workforce, and education, forcing the Indian government to take steps toward regulating AI.
As a follow-up to our previous post on contracting pointers for services incorporating the use of artificial intelligence (AI), we discuss below some of the key questions to ask vendors that may be using AI in the provision of their services.
Join Pittsburgh partner Peter Watt-Morse and Philadelphia partner Barbara Melby and associate Katherine O’Keefe at 12:00 pm ET on Wednesday, January 24, 2024 as they highlight considerations for companies in the financial services and insurance industries that contract for technology and outsourcing services.
Contract Corner
An indemnification provision serves as a contractual remedy to redress a party’s (or third party’s) financial loss suffered as a result of a claim, breach, or some other event or condition set forth in the provision. Indemnification serves as a risk allocation mechanism derived originally from insurance law. Each term—“indemnify,” “defend,” and “hold harmless”—has a distinct and important role in an indemnity clause, so it is important to understand the nuances and differences among the three terms.
Contract Corner
It is no secret that usage of artificial intelligence (AI) technologies continues to expand at a rapid pace. In fact, Flexera’s 2023 Tech Spend Pulse, which is based on a survey of 506 information technology executives across the world, found that investments in AI technologies are surging to a 68% planned increase in use. That figure was the highest of all technologies in the survey.
The Federal Trade Commission (FTC) recently adopted a final rule amending its Standards for Safeguarding Customer Information (commonly referred to as the “Safeguards Rule”) to require financial institutions to report certain data breaches and other security events to the FTC.
In addition to US President Joseph Biden’s recent executive order on artificial intelligence (AI), Vice President Kamala Harris recently announced a series of new US initiatives that will build on the executive order. Following the vice president’s announcement at the Global Summit on AI Safety in the United Kingdom, the administration issued a Fact Sheet outlining the initiatives.
President Joseph Biden issued an executive order (Order) on October 30 addressing the challenges and opportunities posed by artificial intelligence (AI). The Order’s scope is extensive and includes new standards for AI safety, security, and innovation in a number of industries, including, but not limited to, technology, immigration, privacy, intellectual property, healthcare, and the workplace. The overarching goal of the Order is to promote responsible innovation, competition, and collaboration in AI via government oversight and regulation.
Technology transactions, outsourcing, and commercial contracts (TOC) group member Don Shelkey, together with Morgan Lewis lawyers Stephanie Sweitzer, Levi McAllister, Jason Mills, and Samantha Ojo, will present a continuing legal education (CLE) webinar on planning for the 2026 Men’s World Cup on October 11, 2023 from 1:00–2:00 pm ET, as part of the Morgan Lewis World Cup Strategic Initiative.
Given the sharp rise in usefulness of and attention to generative AI–powered applications, the US Copyright Office issued a notice of inquiry and request for comments in order to conduct a deep dive on how this technology could impact fundamental aspects of copyright law, including some issues we have recently discussed, such as potential infringement based on model training content and copyright protection of generative AI outputs.