Tech & Sourcing @ Morgan Lewis

TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
Beginning January 17, 2025, the European Union’s Digital Operational Resilience Act (DORA) will require financial entities to maintain and submit to EU regulators a comprehensive register of their contractual arrangements with third-party information and communication technology (ICT) service providers. Financial entities are being given the opportunity to sign up for a voluntary reporting exercise by May 31, 2024, running between July and August 2024, to help them prepare for one of the most challenging aspects of implementing DORA.
The Federal Trade Commission (FTC) approved a Final Rule on April 23, 2024 banning almost all worker noncompetes. Questions abound regarding the authority of the FTC to create such a rule and the potential implications of its implementation. To help create some clarity, Morgan Lewis lawyers have prepared answers to frequently asked questions (FAQs) related to the Final Rule’s applicability and anticipated impact as well as what businesses can do to prepare.
This blog is the finale to our Cracking AI and Outsourcing Conundrums series, a series in which we’ve discussed thought-provoking topics and set the stage for dynamic discussions with outsourcing customers and providers on the opportunities and risks of generative AI (GenAI) solutions in the outsourcing space. In this Part 4, we examine certain top-of-mind issues arising in connection with ownership and use rights when leveraging GenAI.
Welcome to Part 3 of our Cracking AI and Outsourcing Conundrums series. In Part 1, we discussed at a high level the challenges of requiring outsourcing providers to drive innovation through the use of generative AI (GenAI) while at the same time complying with an outsourcing customer’s AI policies. In Part 2, we dove into the conundrum of balancing a company’s need for enhanced quality checks with the desire (by the company and the outsourcing provider) to drive productivity and realize savings.
In Part 1 of our Cracking AI and Outsourcing Conundrums series, we discussed at a high level the challenges of requiring outsourcing providers to drive generative AI (GenAI) innovation while at the same time complying with companies’ AI policies. One of the challenges we identified was that many outsourcing agreements impose aggressive savings commitments, to be realized through the implementation of technology solutions that enable headcount or other cost reductions.
Innovation: all companies want their outsourcing providers to be at the forefront, whether accomplished by proposing ideas, implementing solutions as part of their business-as-usual services, or offering savings based on productivity commitments or other demonstrable business impact. Some outsourcing providers may even use innovation as a key differentiator during the sales cycle, putting real dollars at risk if innovation projects don’t realize promised savings. And what innovation is more top of mind presently than the use of artificial intelligence?
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 landscape of public procurement in the United Kingdom is primed for a significant shift in 2024 following the introduction of the Procurement Act 2023, which received Royal Assent earlier in 2023. The act, which comes into force in October 2024 and replaces the Public Contracts Regulations 2015 and Concessions Contracts Regulations 2016, is set to revolutionize how the UK government engages with suppliers, with a view toward ensuring a more transparent, competitive, and inclusive procurement process.
Morgan Lewis partners Christopher C. Archer, Anastasia Dergacheva, and J. Daniel Skees as well as associate Arjun Prasad Ramadevanahalli will discuss developments and trends in cybersecurity and digital transformation for the energy industry on Wednesday, November 29.
Deloitte has issued a biennial report that identifies trends that are impacting customer/client contact center operations. The respondents surveyed by Deloitte represented both internal- and external-facing contact centers. This blog post summarizes some key trends outlined in the report.