Tech & Sourcing @ Morgan Lewis

When an M&A transaction closes, the buyer will typically be unable to stand up its own IT environment on day one. In this scenario, the seller often continues operating existing IT systems, provides access to employees who understand them, and delivers data needed for the transition for a period after closing to assist the buyer in eventually operating a standalone IT environment of its own.

As artificial intelligence (AI) becomes increasingly embedded in development services, outsourcing arrangements, and other commercial and technology transactions, customers and vendors are confronting a deceptively simple question: How should risk be allocated when a deliverable is created using AI?

Modern brand partnerships raise contract questions around exclusivity, reputational risk, how influencer and celebrity content can be used after it is posted, and how the parties will measure performance. Part 2 of this Contract Corner series examines how parties can address those issues in their agreements.

Brand partnerships are expanding beyond traditional sponsorships and celebrity endorsements into arrangements that can combine licensing, content creation, product development, distribution, and data sharing. As those relationships become more complex, contracts need to clearly define the partnership, control of brand assets, and what happens to jointly created materials when the relationship ends.

Cyber insurance traditionally assumes a familiar sequence: an attacker gains access to a system, data is stolen or operations are disrupted, and a claim follows. Autonomous systems may complicate every step, including whether the event qualifies as a cyber incident at all.

Signing up for a streaming service might be faster than choosing what to watch, with only a few taps unlocking a month of movies, a season of sports, or enough airline Wi-Fi to make a long flight feel shorter. That convenience, however, rests on a recurring contract that may continue after the vacation ends, change price while it remains in effect, and provide less control over content than the word “subscription” suggests.

A February 2026 IT disruption illustrates how technology dependencies can affect cruise operations. Carnival Cruise Line said the issue arose during planned maintenance and affected embarkation, disembarkation, and other technology tools. Reports of the disruption also identified impacts to Wi-Fi and the Carnival HUB app, while navigation and safety systems remained operational.

A traveler asks an AI concierge to book a quiet oceanfront hotel in Naples for the weekend. Only after the confirmations arrive does the traveler discover that the bot selected Naples, Florida, while the flight is headed to Rome. The hotel is nonrefundable. As AI concierge services move beyond suggesting restaurants and into booking flights, hotels, rental cars, and activities, errors can quickly result in actual charges and disputes over responsibility. When a bot selects the wrong dates, overlooks a cancellation restriction, or books a hotel it was intended merely to recommend, the question becomes who is responsible for the error and the resulting costs.

After a day of flight delays, crowded airports, and rental-car lines, the corporate traveler finally reaches the hotel, drops a bag in the room, and opens a laptop. The hotel Wi-Fi portal requests a room number, last name, and perhaps an email address. At the bottom sits a familiar checkbox: “I Agree.” Click. Congratulations, you may have just entered into the least-negotiated contract of your trip. Hotel Wi-Fi terms vary, and their enforceability may depend on applicable law and how the terms are presented. But publicly available terms reveal that the complimentary connection can come with a substantial set of conditions covering liability, data collection, dispute resolution, and acceptable use. Although most travelers will never have a dispute over hotel Wi-Fi, corporate travelers should understand what may be included before using the connection to access sensitive business information.

As a follow-up to Part 1, in which we discussed increased reliability on sourcing teams’ input for commercial negotiations, this Part 2 discusses additional common provisions sourcing teams should consider in their oversight and management of the contracting process.