Tech & Sourcing @ Morgan Lewis

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.

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.

Morgan Lewis’s technology, outsourcing, and commercial contract team, along with Boston Consulting Group, recently hosted a roundtable dinner in London, during which senior stakeholders from technology suppliers and large businesses discussed how the rapid evolution of artificial intelligence (AI) is impacting offshoring and outsourcing.

The European Supervisory Authorities (ESAs) published on November 18, 2025 a list of 19 critical information and communications technology (ICT) third-party providers (CTPP) that will be subject to direct oversight under the EU Digital Operational Resilience Act (DORA). The list includes hyperscale cloud providers, data center providers, infrastructure and network providers, and providers of financial services-specific technology.

Please join us for a webinar co-hosted with local Indian counsel examining the key issues impacting deployment and use of technology in India.

Artificial intelligence tools designed to perform a specific autonomous function with limited human interaction (commonly referred to as “agentic AI”) are changing the operation of myriad business processes, accelerating the rate at which organizations can handle data workflows and complex decision making. As AI agents transform into full-fledged virtual assistants, organizations are finding new ways to drive value by redesigning their enterprise’s digital landscape to accommodate and augment agentic AI. However, consumers and customers have increasingly been employing agentic AI to interact with companies of all sizes, highlighting that the use of agentic AI may no longer be a one-way road from businesses to customers.

From routine commercial contracts to complex technology transactions and global outsourcing arrangements, terms relating to artificial intelligence remain a key point of negotiation in agreements of all sizes and across the full spectrum of subject matter.

In Part 1 of this series, we discussed why artificial intelligence (AI) agents present unique challenges for technology and outsourcing contracts. As businesses move from development to deploying them in real-world operations, contracts must grapple with governance and accountability issues, such as how these tools are monitored, managed, and held accountable.

As companies expand their use of artificial intelligence, copyright law has become a central area of risk and uncertainty. Building on a recent Tech Marathon webinar presented by Morgan Lewis, we highlight key takeaways from recent court decisions testing fair use in AI training as well as legislative proposals on copyright disclosure and digital replicas. The landscape is shifting quickly, and technology lawyers should be prepared to help clients evaluate AI-related rights and manage risks in transactions.

As businesses move quickly to adopt artificial intelligence agents, contracts for their development and implementation raise novel questions around ownership, accountability, and risk. In this first post of a two-part series, we explore why these issues matter and what technology and sourcing lawyers should be considering as clients engage vendors in this emerging space.