Tech & Sourcing @ Morgan Lewis

TECHNOLOGY TRANSACTIONS, OUTSOURCING, AND COMMERCIAL CONTRACTS NEWS FOR LAWYERS AND SOURCING PROFESSIONALS
How are intellectual property (IP) and data rights allocated when a particular dataset is a key to unlocking a powerful new artificial intelligence/machine learning (AI/ML) model or use case? To find a balance, contracting parties may end up trading a black box for Pandora’s box.
As we continue to see AI steadily and increasingly be incorporated into service offerings, businesses should pay special attention to previously “standard” provisions when contracting for the provision and use of services that incorporate AI. This is especially true considering there may be situations where service providers use AI at some point in the workstream without the recipient even realizing.
The widespread technology outage on July 19, 2024 highlighted major potential issues that can arise when service providers rely on technology to provide critical services. The effects of the outage were felt by critical service providers across numerous industries, including airlines, banks, public transit, healthcare, and media. Because we live in a world that is increasingly reliant on technology, if a critical piece of technology fails or introduces a flaw to a system that relies on that particular technology, it can have extreme consequences, as many experienced on July 19.
Telemarketing has long been a favored method for businesses to reach potential clients. However, with the significant evolution of data privacy and consumer protection laws, telemarketing is now intertwined with numerous legal challenges and concerns.
As part of our Technology Marathon webinar series, partners Kristin Lee, Mike Pierides, and Steven Stone recently discussed financial regulators’ increasing focus on artificial intelligence (AI).
We recently published a report based on our four-part series on Tech & Sourcing @ Morgan Lewis, in which we consider a number of conundrums facing companies looking to leverage artificial intelligence (AI) as part of their outsourcing arrangements. As outsourcing remains a key tool through which companies can streamline operations, cut costs, and access specialized expertise, the explosive advancements in AI and related technologies have introduced new and exciting opportunities and complexities for companies in implementing and maintaining outsourcing relationships.
The UK Competition and Markets Authority (CMA) recently published an update paper outlining its concerns with artificial intelligence (AI) foundation models (FMs). Market players in this space should remain mindful of the CMA’s growing interest as the regulator continues its dedicated program to consider the impact of FMs on markets throughout 2024, with a further update anticipated in August.
In our January 2023 blog post, Study Finds Average Cost of Data Breaches Reaches All-Time High in 2022, we highlighted the key findings of the Ponemon Institute’s Cost of a Data Breach Report 2022. Each year, the report sets forth a vast dataset analyzing data breaches at hundreds of organizations to spot trends and developments in security risks and best practices. Recently, Ponemon Institute published its Cost of a Data Breach Report 2023, showing an increase in data breach costs in many areas of business.
In October, California enacted its newest privacy legislation, commonly referred to as the “Delete Act” (California Senate Bill No. 362). The Delete Act will allow consumers to request that any data broker that maintains any personal information related to that consumer delete such personal information.
The UK government has announced the UK extension to the EU-US Data Privacy Framework, known as the UK-US data bridge. The new framework will allow businesses to transfer personal data between the United Kingdom and the United States. This blog post  explores the significance of the UK-US Data Bridge and what it means for businesses on both sides of the Atlantic.