Tech & Sourcing @ Morgan Lewis

Throughout this AI & Outsourcing Services series, we have explored how artificial intelligence is transforming the outsourcing industry, reshaping contract terms, creating new forms of vendor dependency, and redefining how value is measured and priced. As organizations increasingly deploy AI-enabled technologies within outsourced environments, another critical issue is emerging: governance.

Direct-to-device (D2D) satellite technology is launching traditional mobile communications out of this world. By enabling standard mobile devices to connect directly to satellites, D2D promises expanded coverage and connectivity in areas where terrestrial networks are unavailable.

The use of robotics in warehouses has become prevalent in the last few years. With improved software and the rise of artificial intelligence (AI), warehouse automation can handle inventory, shipping, and orders. Robotics can improve accuracy, be cost-effective, and optimize space, which can benefit both the warehouse operator and the customer. While the rise of robotics has changed the way warehousing services are performed, the terms and conditions of warehousing agreements have not always kept pace with the significant changes resulting from these developments.

The fourth blog in our AI and Outsourcing series examines another significant consequence of AI-enabled outsourcing: the fundamental shift in how parties define, measure, and price value. As artificial intelligence (AI) becomes embedded in service delivery, traditional pricing models based on labor inputs, headcount, and transaction volumes are increasingly being challenged. Customers and service providers alike are reevaluating how outsourcing arrangements should be structured when automation and AI-driven efficiencies can dramatically alter the economics of service delivery.

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.

Join partners Michele Buenafe and Michael J. Madderra on Wednesday, June 17, 2026 at 12:00 pm ET for the Technology Marathon session Always On and Watching: Smart Devices and Their Intersection With Privacy, Health Law, and Regulation, which will explore smart devices as data collectors. As wearables and smart devices increasingly collect and process health-related information, they are playing a growing role in regulated health information and clinical decision-making.

Join partners Alexander Hastings, Amanda Robinson, and Jaclyn Whittaker, on Tuesday, June 16, 2026 at 12:00 pm ET for a webinar discussing key considerations for startups and established companies when contracting with the government.

Open-source software (OSS) is widely used throughout the software industry and can generally be incorporated into commercial products or used internally as development tools. OSS is made available under licenses permitting users to access, use, modify, and distribute publicly available source code subject to specific license terms. Some OSS license rights are more permissive than others.

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.