AI Shaping Commercial and Technology Contract Negotiations in 2024

What Happened

Legal and business professionals are increasingly including AI-specific provisions in commercial and technology contracts. Driven by accelerated adoption of AI tools and services, these updated agreements seek to clarify risk allocation, data privacy, compliance obligations, and intellectual property rights. Law firm Morgan Lewis highlights a growing interest from clients in proactively negotiating AI-related terms due to regulatory uncertainties, potential misuse of AI outputs, and evolving industry standards. Companies are also addressing vendor transparency and liability to minimize disputes and future-proof their agreements as AI deployments become more central to operations.

Why It Matters

This trend underscores the critical need for organizations to anticipate AI risks and legal implications within contracts. As regulatory landscapes shift and AI integration deepens, these agreements help balance innovation with compliance, shaping how businesses harness artificial intelligence. Read more in our AI News Hub