Tech & Sourcing @ Morgan Lewis

TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
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.
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.
Welcome to the first blog in our AI and Outsourcing series, where we explore the disruptive and transformative impact of artificial intelligence (AI) on outsourcing and managed services transactions.
We are currently witnessing a fundamental shift in the role that AI plays in enterprise operations, transitioning from a system that responds when prompted to one that plans, decides, and acts on its own. This shift has a name: agentic AI. And for business leaders and counsel advising on technology strategy, it deserves serious attention right now.
Please join us for our fifth annual Artificial Intelligence (AI) Boot Camp. Throughout the series, Morgan Lewis lawyers will explore the latest in AI developments, insights, usage, and integration, as they may impact companies of all sizes and across industries. Discussions will examine key challenges and opportunities presented by AI from a business and legal perspective.
Get ahead of the game by joining partner Don Shelkey and associates Charlotte Cavendish and Jesse Taylor on March 4, 2026, from 12:00 pm to 1:00 pm ET, for a discussion on emerging trends in sports business transactions. From artificial intelligence–driven fan engagement to innovative sponsorship models shaping the future of sports transactions, the Morgan Lewis team will explore the trends, opportunities, and challenges shaping these transactions.
In Part 1 of this Contract Corner, we discussed the renewed focus on resilience in outsourcing agreements for 2026 and how resilience is increasingly becoming a design requirement, not just an untested BCP. In Part 2 we look at how geopolitical pressures can quickly become delivery constraints and how many organizations are leveraging global capability centers as an anchor for critical knowledge and continuity, and provide a practical 90-day action plan and high-level contract checklist that deal teams can leverage during strategy planning.
Outsourcing strategies in 2026 are being shaped by persistent disruption. Geopolitical uncertainty, major service outages, talent disruption, and post COVID-19 consolidation initiatives are driving a renewed focus on resilience in outsourcing operations and contracts.
Please join us on Thursday, February 5, 2026, from 12:00–1:00 pm ET as Morgan Lewis partners Don Shelkey and Heather Egan explore how artificial intelligence (AI) is transforming how business operate, innovate, and deliver value. The Tech & Sourcing team will dive into legal, commercial, and other strategic issues shaping AI adoption with topics ranging from contracting to compliance.