On October 3, 2025, California Governor Gavin Newsom signed Assembly Bill 940 into law, with the announcement of new funding in an effort to establish a unified strategy in the state to help continue growing the quantum technology industry. AB 940 seeks to build on the state’s established presence in the sector: California is home to both National Science Foundation and US Department of Energy quantum federal research centers. Faster-than-expected innovation could see a surge in the quantum technology economy not just in California but the global economy overall.
Tech & Sourcing @ Morgan Lewis
TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
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.
According to a 2025 report on cyber insurance trends published by Munich Re, the global cyber insurance market totaled $15.3 billion in 2024, and is expected to reach $16.3 billion by the end of 2025. Although these amounts are substantial in an absolute sense, the 2024 market valuation represents less than 1% of the global premium volume for property and casualty insurance in 2024. Cybersecurity’s comparative lack of representation in the global insurance premium market may stem from slower growth in the cybersecurity insurance market in the past few years. However, likely as a result of continued increases in digitization, cyber events occurring more frequently, and the regulatory framework evolving, cybersecurity insurance appears poised to grow at a more sustained pace, with Munich Re predicting the global premium volume for cybersecurity to average an annual growth rate of 10% per year through 2030.
In a recent LawFlash, a team of Morgan Lewis lawyers discussed new regulations concerning automated decision-making technology (ADMT), cybersecurity audits, and risk assessments that were finalized by the board of the California Privacy Protection Agency (CPPA). While the CPPA also revised existing regulations, the new regulations impose additional requirements on businesses operating in California, particularly with respect to those using ADMT to make significant decisions without human involvement.
In a recent LawFlash, a team of Morgan Lewis lawyers discussed President Donald Trump’s July 24, 2025 executive order titled Saving College Sports. This order, which follows recent significant changes to compensation rules and limitations in the collegiate sports landscape, introduces certain guardrails intended to maintain competition and parity within intercollegiate athletics.
Our Morgan Lewis colleagues recently wrote on the US administration’s new artificial intelligence action plan, specifically as the plan seeks to foster innovation and expedite the development of AI data centers and the necessary energy infrastructure required for such expansion.
In an era when data is everything, everywhere, all at once and computation has almost no limit, ensuring privacy while leveraging data analytics is paramount. The US Department of Commerce’s National Institute of Standards and Technology (NIST) recently published NIST Special Publication 800-226 (the Guidelines), a comprehensive guide for evaluating and achieving differential privacy, a cutting edge approach to protecting individual privacy when using and relying on large datasets.
In a recent LawFlash, a team of Morgan Lewis lawyers wrote on the enactment of the Texas Responsible Artificial Intelligence Governance Act (TRAIGA), which will enter into force on January 1, 2026. This legislation marks a significant step in regulating artificial intelligence (AI) technologies within the state of Texas. TRAIGA is broad in scope: applicable to any individual or entity, including government agencies, developing AI systems in Texas, offering a product or service used by Texas residents, or promoting, advertising, or conducting business in the state.
A new Insight published by our Morgan Lewis colleagues highlights the complex legal landscape data centers face in the United States, particularly concerning cybersecurity, privacy, and national security. Cybersecurity preparedness and data privacy are now a critical focus for data centers. However, unlike Europe, the US lacks a comprehensive data privacy statute, requiring data centers to navigate a patchwork of federal, state, and industry-specific regulations.
New York state lawmakers on June 12, 2025 passed the Responsible AI Safety and Education Act (the RAISE Act), which aims to safeguard against artificial intelligence (AI)-driven disaster scenarios by focusing on the largest AI model developers; the bill now heads to the governor’s desk for final approval. The RAISE Act is the latest legislative movement at the state level seeking to regulate AI, a movement that may continue to gain momentum after a 10-year moratorium on AI regulation was removed from the recently passed One Big Beautiful Bill.