https://www.morganlewis.com/rss/blogsBlogs RSS Feed25https://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/09/ai-deliverables-and-liability-a-balanced-approach-to-risk-allocationAs artificial intelligence becomes increasingly embedded in development services, outsourcing arrangements, and other commercial and technology transactions, customers and vendors are confronting a deceptively simple question: who should bear the risk when something goes wrong with a deliverable created using AI?Tue, 01 Sep 2026 00:00:00 -0500e08436ab-4eab-409c-80e7-5ff8bf866eabTechnology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesArtificial IntelligenceTechnologyOUTCBTEmily R. LoweFredrick T. Philantropehttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/08/when-a-cyber-loss-has-no-conventional-hackerCyber 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.Mon, 31 Aug 2026 00:00:00 -05008e4ce306-a981-4dd9-b0ee-5ed1ec7a2a9cTechnology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesArtificial IntelligenceTechnologyOUTCBTAnastasia DergachevaMichael R. Pfeufferhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/08/buying-a-summer-streaming-subscription-read-the-fine-printSigning 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.Fri, 21 Aug 2026 00:00:00 -0500b05d90ab-74d6-45e0-b7c5-d0ca62c15961Technology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesOUTCBTAnastasia DergachevaMichael R. Pfeufferhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/08/contract-corner-the-contracts-behind-cruise-ship-technologyA 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.Thu, 20 Aug 2026 00:00:00 -0500f6efd0bb-e4fb-4e9d-9f0b-0936bf1a49b6Technology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesOUTCBTAnastasia DergachevaMichael R. Pfeufferhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/08/ai-concierge-services-who-is-liable-when-a-bot-books-the-wrong-vacationA 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.Thu, 13 Aug 2026 00:00:00 -050035b61140-2ec6-4f5d-81ab-5520669a44ffTechnology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesTechnologyArtificial IntelligenceOUTCBTAnastasia DergachevaMichael R. Pfeufferhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/08/eu-ai-acts-transparency-rules-what-went-into-effect-on-2-augustOn 2 August 2026, the transparency obligations in Article 50 of the EU AI Act began to apply. Relative to Article 50, the EU Digital Omnibus (which amended the EU AI Act) only deferred certain specific obligations. As such, the bulk of the Article 50 obligations are already applicable to organizations subject to the EU AI Act. Below is a high-level overview. An upcoming accompanying LawFlash will examine the obligations and exceptions contained in Article 50, the Commission’s Guidelines, and the Code of Practice referenced below in more detail.Wed, 12 Aug 2026 00:00:00 -0500dfa0b420-6e1c-4869-b480-21f211246063Corporate, Finance & Investment ManagementTechnology Transactions, Outsourcing & Commercial ContractsLabor, Employment & BenefitsUS Labor/​Management RelationsLitigation, Regulation & InvestigationsCybersecurity, Incident Response & PrivacyEuropeTechnologyArtificial IntelligenceCBTOUTEBLBRLMRLITACCPKatherine (Kat) GibsonVishnu ShankarAnastasia DergachevaMichael R. Pfeufferhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/08/hotel-wi-fi-terms-conditions-the-contract-you-accept-without-readingAfter 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.Wed, 05 Aug 2026 00:00:00 -05003f08e5b8-3f5b-4d77-b40a-bd89fb2be302Technology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesOUTCBTAnastasia DergachevaMichael R. Pfeufferhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/a-pro-curated-list-of-contractual-provisions-sourcing-teams-should-not-ignore---part-2As 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.Fri, 31 Jul 2026 00:00:00 -0500c7b55723-049f-47ac-ab80-f769583991a2Technology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesOUTCBTAaron J. RogersA. Benjamin Klaberhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/a-pro-curated-list-of-contractual-provisions-sourcing-teams-should-not-ignore-part-1Sourcing teams are assuming increasing responsibilities in the contracting process, playing a central role in managing an array of issues, including legal, operational, financial, and information security risks. In an effort to streamline contracting lifecycles and reduce legal costs, companies often prefer legal counsel to focus on complex issues around intellectual property rights, indemnification, or regulatory compliance. This often leaves important unresolved issues to be negotiated by the sourcing team. Fortunately, by focusing on certain terms of outsized impact that arise across deals, sourcing departments can contribute significantly to managing their companies’ risk profiles.Wed, 22 Jul 2026 00:00:00 -0500c175167d-c488-4776-ad87-d752f430a614Technology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementUnited StatesOUTCBTA. Benjamin KlaberAaron J. Rogershttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/contractual-freedom-to-operate-a-surgical-approachWhile a freedom-to-operate (FTO) analysis often centers on patent or trademark searches, contractual commitments can establish the practical boundaries—or maze—of a company’s degrees of freedom. Organizations with a checklist of high-level issues to be addressed during contract discussion and negotiation (such as liability, compliance, and data protection) should consider adding FTO to that list. With a more holistic perspective of the FTO landscape and with business and technical teams’ input, commercial counsel can find creative ways to complete the puzzle.Tue, 14 Jul 2026 00:00:00 -050055593f66-bafd-4439-9a85-711f4ebc7c0dTechnology Transactions, Outsourcing & Commercial ContractsTelecommunications, Media & TechnologyCorporate, Finance & Investment ManagementUnited StatesOUTTMTCBTA. Benjamin KlaberAaron J. Rogershttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/spotlight-on-kat-gibson-navigating-labor-and-employment-issues-in-global-outsourcingGlobal outsourcing transactions often require companies to navigate not only complex commercial issues, but also employment-related regulations and local practices that can vary significantly across jurisdictions. As organizations continue to transform their operations through outsourcing, managed services, and digital and AI transformation initiatives, labor and employment considerations have become an increasingly important part of transaction planning. Partner Kat Gibson advises multinational companies on the employment issues that arise in outsourcing transactions, including employee transfers, workforce restructurings, reductions in force, consultation obligations, and cross-border employment compliance. We recently sat down with Kat to discuss some key labor issues companies should be thinking about when planning global outsourcing transactions.Tue, 14 Jul 2026 00:00:00 -05007b3a5551-1353-4ca9-888b-b7147c2a6e8aTechnology Transactions, Outsourcing & Commercial ContractsGlobal OutsourcingLabor, Employment & BenefitsCorporate, Finance & Investment ManagementUnited StatesOUTEBLBRCBTDoneld G. ShelkeyBarbara Murphy MelbyKatherine (Kat) Gibsonhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/termination-for-convenience-the-battle-over-free-willFlexibility versus certainty is an important and often challenging tradeoff throughout commercial contract negotiations, particularly regarding termination for convenience. Customers, mindful of shifting budgets, technological changes, and evolving business needs, want the freedom to walk away at their discretion. Vendors, mindful of upfront infrastructure investments, staffing needs, and revenue volatility, want a committed income stream. Reconciling these competing needs can become a significant sticking point, often arising later in the negotiation cycle after other issues have been settled.Wed, 08 Jul 2026 00:00:00 -05003bb5ed18-5e53-4a2f-a5d6-49b0a116ca88Telecommunications, Media & TechnologyTechnology Transactions, Outsourcing & Commercial ContractsCorporate, Finance & Investment ManagementTechnologyTMTOUTCBTAaron J. RogersA. Benjamin Klaberhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/key-considerations-for-service-providers-when-allowing-service-provider-personnel-to-work-remotelyRemote and hybrid work arrangements are becoming increasingly common across industries, and service providers are more frequently allowing personnel to perform services from remote locations. While these arrangements can, in certain cases, offer operational benefits, they also introduce security, compliance, and oversight risks that must be accounted for. Accordingly, organizations engaging service providers with remote workforces should consider contractual requirements to address these concerns. When drafting and implementing these requirements, customers should consider the following issues.Mon, 06 Jul 2026 00:00:00 -0500f447a62f-3012-4ec3-9c7c-a39c86391ab7Technology Transactions, Outsourcing & Commercial ContractsUnited StatesOUTKatrina Slack Vito Petrettihttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/ai-outsourcing-series-rethinking-outsourcing-governance-compliance-and-control-in-the-ai-eraThroughout 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.Thu, 02 Jul 2026 00:00:00 -05005c7440cd-5e44-48e6-a6e7-bfc59d5a188bCorporate, Finance & Investment ManagementCommercial ContractsTechnology Transactions, Outsourcing & Commercial ContractsIntellectual PropertyTechnology TransactionsGlobal OutsourcingUnited StatesTechnologyArtificial IntelligenceCBTOUTIPMarina G. AronchikC. ("Kari") KrusmarkBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/07/upcoming-webinar-on-investing-with-purpose-and-innovating-with-impactJoin of counsel Casey Oetgen for an insightful program exploring investment approaches that can help organizations align investment capital with organizational purpose, such as mission-related investments and program-related investments, with practical guidance on legal and strategic frameworks.Thu, 02 Jul 2026 00:00:00 -05008d6cb734-e289-4299-a2bc-16aed9f60535Telecommunications, Media & TechnologyCorporate, Finance & Investment ManagementCybersecurity, Incident Response & PrivacyLitigation, Regulation & InvestigationsUnited StatesTechnologyHealthcareTMTCBTACCPLIThttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/connecting-the-dots-and-the-satellites-legal-considerations-for-direct-to-device-servicesDirect-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.Fri, 26 Jun 2026 00:00:00 -05008602113f-c212-4a34-b289-1ca4c0461494Telecommunications, Media & TechnologyCorporate, Finance & Investment ManagementAerospace & DefenseSpace & SatelliteTMTCBTVito PetrettiKatrina Slack https://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/top-considerations-of-robotic-use-in-warehouse-agreementsThe 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.Thu, 18 Jun 2026 00:00:00 -0500aed94e39-4923-476e-8d07-cf6e86209553Telecommunications, Media & TechnologyTechnology Transactions, Outsourcing & Commercial ContractsCybersecurity, Incident Response & PrivacyCorporate, Finance & Investment ManagementLitigation, Regulation & InvestigationsUnited StatesEuropeTechnologyArtificial IntelligenceTMTOUTACCPLITCBTVito PetrettiKatrina Slack https://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/ai-and-outsourcing-series-the-new-outsourcing-equationThe 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.Wed, 17 Jun 2026 00:00:00 -05005a3de9ef-3c89-4421-9905-a19d8d217699Corporate, Finance & Investment ManagementCommercial ContractsTechnology Transactions, Outsourcing & Commercial ContractsIntellectual PropertyTechnology TransactionsGlobal OutsourcingUnited StatesTechnologyArtificial IntelligenceCBTOUTIPMarina G. AronchikC. ("Kari") KrusmarkBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/key-considerations-when-allowing-a-vendor-to-train-its-ai-models-on-customer-dataMost 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.Fri, 12 Jun 2026 00:00:00 -0500d6ccec9d-2db5-4d26-92eb-d04c15531f01Technology Transactions, Outsourcing & Commercial ContractsTelecommunications, Media & TechnologyCybersecurity, Incident Response & PrivacyLitigation, Regulation & InvestigationsUnited StatesTechnologyArtificial IntelligenceOUTTMTACCPLITKatrina Slack Vito Petrettihttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/technology-marathon-webinar-smart-devices-privacy-health-law-and-regulationJoin 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.Thu, 11 Jun 2026 00:00:00 -05001641977d-ffe8-4ea5-a194-98c7850946c1Telecommunications, Media & TechnologyCybersecurity, Incident Response & PrivacyUnited StatesTechnologyHealthcareTMTACCPLITKatrina Slack Vito Petrettihttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/upcoming-webinar-on-government-contracting-in-the-technology-industryJoin 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.Thu, 11 Jun 2026 00:00:00 -0500b8ecc3a6-4619-404f-af5f-285b1b15b190Government ContractsWhite Collar Litigation & Government InvestigationsFalse Claims Act & Qui Tam LitigationCybersecurity, Incident Response & PrivacyLitigation, Regulation & InvestigationsIntellectual PropertyUnited StatesAerospace & DefenseTechnologyLITFDAACCPIPKatrina Slack Vito Petrettihttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/open-source-software-common-areas-of-inquiry-in-m-and-a-due-diligenceOpen-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.Fri, 05 Jun 2026 00:00:00 -05002380faee-33d8-4fdc-a0c0-f5c86aab9b81Telecommunications, Media & TechnologyCybersecurity, Incident Response & PrivacyTechnology Transactions, Outsourcing & Commercial ContractsMergers & AcquisitionsCorporate, Finance & Investment ManagementLitigation, Regulation & InvestigationsUnited StatesEuropeTechnologyTMTACCPLITOUTCBTMAKatrina Slack Vito Petrettihttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/06/ai-and-outsourcing-series-digital-dependency-and-key-considerations-in-outsourcing-dealsAs 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.Wed, 03 Jun 2026 00:00:00 -0500d5a2392f-76ab-40e6-9946-6f93466fd0caCorporate, Finance & Investment ManagementCommercial ContractsTechnology Transactions, Outsourcing & Commercial ContractsIntellectual PropertyTechnology TransactionsUnited StatesTechnologyArtificial IntelligenceCBTOUTIPMarina G. AronchikC. ("Kari") KrusmarkBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/05/ai-and-outsourcing-series-ai-changes-the-terms-rethinking-outsourcing-dealsIn 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.Thu, 28 May 2026 00:00:00 -0500531fad29-0bf0-4a2d-9818-5ea0077ec28dCorporate, Finance & Investment ManagementTechnology Transactions, Outsourcing & Commercial ContractsCommercial ContractsIntellectual PropertyTechnology TransactionsUnited StatesTechnologyArtificial IntelligenceCBTOUTIPMarina G. AronchikC. ("Kari") KrusmarkBarbara Murphy Melbyhttps://www.morganlewis.com/blogs/sourcingatmorganlewis/2026/05/technology-transactions-across-europe-the-middle-east-and-the-united-statesDigital transformation initiatives across Europe, the Middle East, and the United States are accelerating at a remarkable pace. As multinational companies expand cloud adoption, AI deployment, data-sharing ecosystems, and managed technology services across jurisdictions, technology transactions are increasingly becoming instruments of geopolitical strategy, regulatory compliance, and regional market access—not simply procurement exercises.Tue, 26 May 2026 00:00:00 -0500408dab18-2621-4265-8a68-ca2753e12675Technology Transactions, Outsourcing & Commercial ContractsTechnology TransactionsTelecommunications, Media & TechnologyCybersecurity, Incident Response & PrivacyCorporate, Finance & Investment ManagementIntellectual PropertyLitigation, Regulation & InvestigationsEuropeMiddle EastUnited StatesTechnologyArtificial IntelligenceOUTIPTMTACCPLITCBTKsenia AndreevaAnastasia DergachevaMarie DavyBarbara Murphy Melby