GlobalAItrendsreport

Keylegalissuesfor2025

ThelegalissuesinAIyouneedto

knowaboutfortheyearahead

2Globalartificialintelligence(AI)solutions

Introduction

Editors

SimonElliott

Partner,HeadofDataPrivacy,

CybersecurityandAIforUK,IrelandandMiddleEast,London

D+442072467423

simon.elliott@

Asweenter2025,wereflectonaperiodmarkingaparadigmshiftintheadoptionofartificialintelligence(AI).MajortechcompanieshavepouredmorethanUS$150billionintoAI

capitalexpenditure,1theoverallAImarkethaspushedpastUS$184billion2andtherearereportsacknowledgingnear300AIusecasesacrossvariousindustries.3Some

organizationshaveevidentlyreapedthesebenefits,asvaluationssoaralongsidetheAImarket’sexpansion.4

2024unequivocallyevidencedtheabilityofAIandits

transformativepotentialtocapturethefocusofthemarket.Themarketisalreadycrystallizingintoitsnextphase.

Now,deploymentofAIisnolongeraconceptortrial.It

hasthepotentialtocontributeUS$15.7trilliontotheglobaleconomyby2030,5andmajortechcompaniesarealreadypredictedtospenduptoUS$250billiononAIinfrastructurein2025alone.6

GiangiacomoOlivi

Partner,EuropeCo-HeadofIntellectualProperty,DataandTechnology,MilanD+390272626800

giangiacomo.olivi@

Intheupcomingyears,weexpecttoseebusinessmodels

increasinglyshifttobeingAI-drivenatthesametimeas

newglobalregulationsemerge,suchasthosedeveloping

morerobustprotectionsensuringsafeandresponsibleAI

development.AndtherewillbestrongemphasisonbusinessleadershavingsufficientknowledgeofAItoeffectively

navigatethisshiftinglandscape.

Itisapparentthatthegreenlightisonfororganizations

tounlockAI’spotential,anditisformingcentralpillarsin

businessstrategyandinvestmentdecisionsaroundtheglobe.

However,itisimperativeforbusinessestobepreparedbeforeunlockingAI’spotential.Thisinvolvesstayinginformedaboutthedevelopingissuesandtrendsimpactingtheadoptionofthetechnology,aswellaspreparingorganizations’internal

riskandoperatingstructures.

1.

/sites/bethkindig/2024/11/14/ai-spending-to-exceed-a-quarter-trillion-next-year

2.

/forecasts/1474143/global-ai-market-size

3.

/gx/en/issues/artificial-intelligence/publications/artificial-intelligence-study.htm

4.

/technology/artificial-intelligence/openai-closes-66-billion-funding-haul-valuation-157-billion-with-investment-2024-10-02

5.

/gx/en/issues/artificial-intelligence/publications/artificial-intelligence-study.html

6.

/sites/bethkindig/2024/11/14/ai-spending-to-exceed-a-quarter-trillion-next-year

DeploymentofAIisnolongeraconceptortrial.

Ithasthepotentialtocontribute

US$15.7trillion

totheglobaleconomyby2030,

andmajortechcompaniesare

alreadypredictedtospendupto

US$250billion

onAIinfrastructurein2025alone.

Therewillbestrong emphasisonbusinessleadershavingsufficient knowledgeofAItoeffectivelynavigatethisshiftinglandscape.

Werecently

surveyed450businessleadersandgeneral

counsel

toassesswherelargeorganizationsareintheirAI

adoptionjourneyanditwasclearthat,despitetheAIhype,manyarenotatthestageoffullyunderstandingwherethetechnologycanbetransformativeandexecutingontargetedstrategicdeployment.

63%

Forinstance,AI’sinteractionwithintellectualproperty

rightsisoneofthemostchallengingissuesneedingnear-

termresolutionandhighlightsemergingtrends,suchas

growingattentiononcopyrightconcernsregardingpotentialinfringementarisingfromtheoutputfromgenerativeAI

andwhatappropriatelicensingpartnershipmodelsshould

take.Consideringthis,organizationswillneedtoconsider

safeguardsandevaluateoptimizedprotectionstrategies.

Thisincludesdevelopingclearstrategiesonwherelicensingarrangementscanprotectormonetizecontentandlookingtoprotectself-developedAItechnologiesbyexploringspecialistpatentapplications.

TheapproachtoprocurementorlicensingofAItechnologyfromexternalvendorsisanareathatisbecomingincreasingly“frontofmind”.Thisisakeystrategicdecisionforcompaniesfocusingtheirgrowthandtransformationplansaround

enhancedAIcapabilities.AccordingtoourLawsofAITractionReport,sevenin10businessleadersviewAIadoptionand

implementationasthekeygrowthdriverfortheirorganization.Asthismarketevolves,organizationsinterestedincontractingforexternalAItechnologymustconsiderend-to-end

procurementstrategiesandensurecompliancewithcurrentAIregulationswhileanticipatingpotentialchanges.

2025issettobeanotherimportantyearfororganizationsandleadersintermsofAIregulationandgovernance,whichwillseetheinitialprovisionsoftheEUAIActtakeeffect–aglobalbenchmarkonAIregulation.Ourglobalteamhasleveragedtheirunderstandingofcurrenttrendsandclientchallenges

toprovideinsightsonhowtheregulatoryenvironmentisinfluencingapproacheshere.

Anyonewithresponsibilityfortheirorganization’slegalor

riskagendawillbenefitfromreviewingthisreportwhichalsocoversemergingissuessuchas:

?anemergingglobalconsensusaroundminimizingtherisksofAIuse;

?theincreasingfocusonprivacyandsecuritybydesign;

?howAIispushingbusinessestowardsself-governanceframeworksfoundedonethicalconsiderations;and

?howcourtsareexpectedtotackletheissueofalgorithmicbias.

Wehopeyoufindthisreporthelpfulandwouldbe

interestedtohearhowyouandyourlegalteamsare

addressingtheseissues,aswellasothersnotincludedinthereport.Ifyouwouldwelcomeatailoreddiscussion

regardingyourorganization’sapproachtoAI,please

contactanappropriatepersonlistedinthereportoremailbrendan.graves@to

arrangeameeting.

Notably,63%of

businessleaderscurrentlydonothaveaformalizedAIroadmap.

FormoredetailedinsightsonhowbusinessesareenteringthisneweraofworkingwithAI,

pleaseexploreour

LawsofAITractionReport

availableat.

Notably,63%ofbusinessleaderscurrentlydonothavea

formalizedAIroadmapforhigh-impactAIintegration.Ina

landscapewhere74%ofbusinessleadersbelievethatAI

isanimportantmechanismtoprotecttheirorganization’s

revenueandbottomline,establishingrobustbuildingblocksfromagovernanceperspectiveisessentialtoturbochargeAIstrategy.Whilethisvariesbysector,thespeedofAIadoptionwilldependonthesebuildingblockstoanticipaterisksandhelporganizationsclosethegapbetweenAIambitionsandtheactionstheytake.

ThegrowthofAIunderscorestheimportanceforbusinessestopositionthemselvestomanagetheassociatedrisksofthisevolvinglandscape.ThisreporthighlightswhatweatDentonsseeaskeylegalandrisktrendsforAIin2025.

Establishingrobustbuildingblocksfromagovernance

perspectiveisessentialtoturbochargeAIstrategy.

凸

Theapproachto

procurementorlicensing

ofAItechnologyfrom

externalvendorsisan

areathatisbecoming

increasingly“frontofmind”.

3Globalartificialintelligence(AI)solutions

DocumenttitleorD?3

Contents

AIregulation,governance

andethics

5

IPprotectionand

enforcement

16

Data

privacyand

cybersecurity

10

Disputesandmanaging

liability

18

AIprojectsandprocurement

12

M&Aand

investments

20

Employmentandtalent

management

14

Competitionandantitrust

22

4Globalartificialintelligence(AI)solutions

AIregulation,governanceandethics

Editor

ChantalBernier

OfCounsel,Co-chairGlobalPrivacy&CybersecurityGroup,Ottawa

D+16137839684

chantal.bernier@

TheglobalAIregulationlandscapeis

fragmentedandrapidlyevolving.Earlier

optimismthatglobalpolicymakerswould

enhancecooperationandinteroperabilitywithintheregulatorylandscapenowseemsdistant.

Instead,wecontinuetoseethepolicyprocesstoregulateAIprogressthroughouttheworldatdifferentstagesandadoptingdifferentmodels,frompolicystatementstosoftlaw,totabledoradoptedlegislation.

However,throughoursupportofglobalbusinesses,weseethebeginningsofacommonglobaldirectionemerging

onhowtominimizetherisksofAIuseandcreatethe

structurestoaddressthecoreprinciplesofsafeandethicalAIdevelopmentandusethatarebecomingthecornerstonesofglobalAIregulations.InordertodeveloptheseAI

governancestructures,businessesneedtoanticipateevolvinglegalrequirementsandregulatoryapproaches.

Drivenbythisincreasingcohesion,newgovernance

modelsandstrategiesforAIhaveemergedinboththe

publicandprivatesectors,offeringvaluableframeworks

forotherorganizationstofollow.Forexample,theEuropeanCommission’sAIgovernanceinitiativesoffermodelsfrom

whichcompaniescandrawinspirationtoavoidreinventing

thewheel.Leadingglobaltechnologycompaniesincreasinglyprovideabenchmarkintheirpubliclyavailablestandards

andprinciples.Globally,whilethereisaconvergencearoundfundamentalethicalprinciplesandvalues,thereremains

aneedtobecognizantofregionalapproachestoAI

regulationandadoptingorganizations’ownframeworkaccordingly.Understandingthesediversestrategiesiscrucialforcompaniesoperatinginmultiplejurisdictions.

Inordertodevelop theseAIgovernancestructures,businesses needtoanticipate evolvinglegal requirementsandregulatoryapproaches.

5Globalartificialintelligence(AI)solutions

Regulatorycohesionstartstoshowthe

wayforward

Canada

Contributor

ChantalBernier

OfCounsel,Co-chairGlobalPrivacy&CybersecurityGroup,Ottawa

D+16137839684

chantal.bernier@

Canada’sdirectionemergesfromthe

proposed

ArtificialIntelligenceandDataAct

(AIDA)andthe

VoluntaryCodeofConduct

ontheResponsibleDevelopmentand

ManagementofAdvancedGenerativeAI

Systems

.Withanelectionlooming,AIDA

hasanuncertainfuture.TheVoluntaryCodecommitsthesignatoriestoAccountability,Safety,FairnessandEquity,Transparency,

HumanOversightandMonitoring,andValidityandRobustness.

UnitedStates

Contributors

ToddD.Daubert

Partner,WashingtonD+12024086458

todd.daubert@

PeterZ.Stockburger

OfficeManagingPartner,SanDiegoD+16195958018

peter.stockburger@

TheTrumpadministrationlikelywillreduce

regulation,minimizeinternationalcooperationandeliminatecurrentExecutiveOrderswith

thegoaloffosteringinnovationandUS

competitiveness.Plansmayinvolveappointingan“AIczar”tocoordinatefederalefforts,

focusingoninfrastructuredevelopment

likedatacentersandsemiconductor

manufacturing.Thisderegulatoryapproachmayberesistedbyskeptics,includingkey

advisors.Stateswilllikelycontinueadoptingsector-specificAIregulationstoaddress

concernsaboutsafetyandethics,andcourtswilllikelyaddresskeyissuesinpendingcases.Afragmentedandpatchworklandscapewilllikelyneedtobenavigatedinthenear-term.

6Globalartificialintelligence(AI)solutions

LatinAmerica

Contributor

JuanitaAcosta

Partner,Bogota

D+576017439326

juanita.acosta@

InLatinAmerica,mostcountries

onlyhavesoftlaworequivalent

instrumentsregardingtheuse

ofAI,exceptfor

Peru

,whichhasimplementedaregulationfocusedonprinciplesandthepromotionofAIusage.

Furtherdetailsmaybeexpectedshortly,asseveralcountries,suchasChile,Colombia,Brazil,Mexico,Panama,PeruandCostaRica,aresubmittingbillsandlegalinitiativestoregulateAI,particularlyto

protectpersonaldataandintellectualproperty.

LatinAmericawillcontinuetobeakeyregiontowatchin2025.

Africa

Contributors

ShahidSulaiman

SeniorPartner,CapeTownD+27216860740

shahid.sulaiman@

DavinOlen

Associate,JohannesburgD+27113266257

davin.olen@

EffortstoregulateAIareemergingacrossAfrica.Leadersacrossthecontinent

includeMauritius,whichhasreleased

an

AIstrategy,

alongwithKenyaand

Nigeria,whicharebothconsultingwithstakeholderstodevelopnationalAI

strategies.InSouthAfrica,stakeholder

engagementhasincreasedsincethe

releaseofadraft

AIpolicyframework

fordiscussion.Further,SouthAfrica’s

PatentOfficehasrecentlyregistered

anAIasapatentinventor,contrasting

withrejectionsofthesameapplicationelsewhere.ThisdecisionisbasedontheformativeprocessforpatentregistrationsinSouthAfricaandprovidesan

importantincentiveforAIdevelopmentintheregion.

7Globalartificialintelligence(AI)solutions

UnitedKingdom

Contributor

SimonElliott

Partner,HeadofDataPrivacy,

CybersecurityandAIforUK,

IrelandandMiddleEast,LondonD+442072467423

simon.elliott@

AIregulationintheUnitedKingdomfindsitselfinachallengingposition.

BasedonaclearvisionintheUKNationalAIStrategytocontinueasagloballeaderinsupportingthedevelopmentand

adoptionofAI(andaimingtounlocktheeconomicbenefitsinthedigitaleconomyandproductivity),todatetheUKhas

focusedona‘pro-innovation’,light-touchapproach.Thisapproachiscenteredon

responsibilitybeingplacedonsectoral

regulatorstodevelopappropriate

guidanceandcodesofpracticeand

avoidingAI-specificlegislation.”Guardrails”hadpreviouslybeenthewatchword.

TheUKhasalsoseenitsopportunitytobeabalanceorbridgebetweenthesafety-focusedapproachoftheEU

andthelessregulatedapproachoftheUS.

However,thereisafocusontheneed

toacknowledgeanincreasingconsensusofthepotentialharmsandrisks

thatcanarisefrominsufficiently

regulatedAIandtolegislateaccordingly.

Thedirectionoftravelappearstobeanintentiontodoso,ina

proportionatemanner.

Detailsofaproposedlegislative

approachfocusingspecificallyonthe

“mostpowerful”AImodelsareexpectedtobepublishedforconsultationshortly.Proposedlegislationislikelytoalso

involvecodifyingrequirementsfor

leadingAIlabstomakemodels

availablefortesting.

Thissupportsanotherkeyaspectof

theUK’scontributiontotheglobal

developmentandregulationofAI,

positioningtheUKAISafetyInstitute

asthegloballeaderinundertakingandcoordinatingglobalresearchonthemostimportantrisksthatAIpresentstosocietytoenablethebest-informedpolicy

decisionstobemade.Thiswilllikely

continuetobeakeyfocus,particularlyconsideringananticipated

scalingbackofitsUScounterpart.

EuropeanUnion

Contributors

GiangiacomoOlivi

Partner,EuropeCo-HeadofIntellectualProperty,DataandTechnology,MilanD+390272626800

giangiacomo.olivi@

of“AISystem”,andcategorizingAIsystemsbasedontheirpotentialriskforindividualsandfundamentalrights,focusingon

theuseoftechnology,ratherthanthetechnologyperse.

ComplementingtheAIAct,theEUis

advancingadditionalmeasurestoaddresslegalandliabilitychallengesassociated

withAI.Theproposed

AILiabilityDirective

seekstomodernizenon-contractualcivilliabilityrules,ensuringtheyareequippedtohandletheuniquecomplexitiesofAI

systems.Furthermore,therecent

Revised

ProductLiabilityDirective

extendsliabilitytoencompasssoftware,AIsystemsanddigitalservicesthatinfluenceproduct

performance–suchasnavigationtoolsinautonomousvehicles–bridgingcriticalgapsinconsumerprotection.

Drivenbythisimmediateand

comprehensivelegislation,newAI

governancemodelsarebeingdeployedthroughouttheEUandwilllikelygain

furthertractionfromthenewly

establishedEUAIOffice,fostering

thepromotionoftheEUapproachalsobeyonditsborders.Manybusinesses

–butnotall-areturningtogovernancemodelsdesignedfortheEUAIAct

astheirbenchmarkmodelformanagingcompliancewithdevelopingglobalregulation.

ChiaraBocchi

Counsel,Milan

D+390272626942

chiara.bocchi@

Europe’sregulatorystrategyreflectsits

commitmenttosafeguardingfundamentalrights,promotingtrustinAIandshapingaglobalregulatorystandard.

TheEuropeanUnionisindeedattheforefrontofglobaleffortstoregulateartificialintelligence,withitslandmark

AIAct

.

TheAIActhasbeenwelcomedasthe

world’sfirstcomprehensiveAI-specific

legalframework,providingalegaldefinition

8Globalartificialintelligence(AI)solutions

Asia-Pacific

Contributors

MichaelPark

Partner,MelbourneD+61391948313

michael.park@

MattHennessy

Partner,MelbourneD+61391948389

matthew.hennessy@

InSeptember2024,theAustralian

governmentreleaseda

Voluntary

AISafetyStandard

comprisinga

numberofAIguardrailstocreate

bestpracticeguidancefortheuseofAI.Thegovernmentalsoproposed

mandatoryguardrailsforAIinhigh-

risksettings

,whichweresubjectto

publicconsultation.Itispossible

Australiacouldenactlegislation

drawinguponsomeoftheconceptsintheEUAIAct,butitcurrently

remainsunclearhowthegovernmentwillproceed.InMay2024,the

Singaporegovernmentintroduced

the

ModelAIGovernanceFramework

forGenerativeAI

,whichdetails

bestpracticeguidanceonresponsibledevelopment,deploymentanduse

ofAI.China’s

InterimMeasuresfor

theManagementofGenerativeAI

Services

commencedin2023andshouldcontinuetobeobserved

astheregion’sfirstcomprehensivebindingregulationongenerativeAI.

ToddD.Daubert

Partner,WashingtonD+12024086458

todd.daubert@

AconvergenceofrapidlyevolvingtechnologicaldevelopmentsisleadingtoanincreasedfocusonprivacyandsecuritybydesignandeffectiveAIanddatagovernancebycompaniesand

regulatorsaroundtheworldasthepracticalimpactofAIondataprivacyandsecurity

becomesclearer.Thedynamiclandscape

ofdataprivacyandsecurityisdemanding

continuousadaptationfromorganizations

andregulators,whichprivacyandsecuritybydesigncombinedwithstronggovernance

helptoachieve.

PeterZ.Stockburger

OfficeManagingPartner,SanDiegoD+16195958018

peter.stockburger@

Thepastyearwasmarkedbyanincreasedscrutinyof

AI’simpactonprivacy,aheightenedfocusonprotecting

children’sdata,aneedforbusinessestoadapttheirmodelstocomplywithstricterdataprivacylawsandagrowing

practicalriskarisingfromAI-enabledcyberthreats.

Governmentsgloballyareenactingstricterdataprivacy

regulationstoprotectpersonalinformation.Regulators

arealsoscrutinizingtheethicalimplicationsofAIsystems,promptingbusinessestoadoptprivacy-preserving

techniqueslikefederatedlearninganddifferentialprivacy.RecentexamplesofAI-poweredchatbotsurgingminors

toengageinself-harm,suicideandviolenceagainstparentshaveledtointensescrutinyofwhethertheseundesirable

outcomesaretheresultofpoordesignchoicesorfailuresofgovernance.

ThepastyearwasmarkedbyanincreasedscrutinyofAI’simpact onprivacy,aheightenedfocus onprotectingchildren’sdata, aneedforbusinessestoadapt theirmodelstocomplywith stricterdataprivacylawsand agrowingpracticalriskarisingfromAI-enabledcyberthreats.

Engaginginprivacybydesigncanhelptoreducethelikelihood thatpersonalinformationused fortrainingofAImodelsisdisclosedintheresultsproduced bythemodelsorthatpersonaldataisincorporatedintotraining datawithoutappropriateconsiderationandmitigations.

Dataprivacyandcybersecurity

Editors

Privacyand

securitybydesignbecomingthekeycornerstonesforeffectiveAIrisk

managementanddigitalresilience

10Globalartificialintelligence(AI)solutions

Manyorganizationsaremoreeffectivelyintegratingsecurity

intothedesignoftheirsystems,adoptingzerotrust

architecturetomoreeffectivelycontrolandverifyaccesstoresources,usingAItodetectthreatsinrealtime,automateresponsesandpreventattacks,movingmoredatato

Asprivacylawsbecomemorecomplexandintertwined

withAI-specificregulations,andaslitigationrisksincrease,businessesfacegreaterchallengesincomplyingwith

Cyberattacks,oftensupportedbyAI-powered tools,aremorefrequent andsophisticated, creatingsignificantrisks fororganizationsandgovernmentsworldwide.

inconsistentrequirementswithoutunnecessarilyhinderingtechnologicalinnovation.

thecloudtotakeadvantageofthird-partyexpertise,and

implementingextendeddetectionandresponsetointegratedatafrommultiplesecurityproductsintoasinglesystemtoprovideamoreholisticviewofpotentialthreats.Robustandpragmaticgovernancestructuresandpracticesarecriticalforensuringthatthesecuritymeasuresimplementedbydesign

–securitybydesign–continuetofunctionasintendedandremainupdatedwiththelatestintelligenceandtechnologypatches,andhelpingorganizationsthathavesuffereda

securityincidentdemonstratethattheyhadtakenreasonablesecuritymeasurestoregulatorsandplaintiffs.

Collaborationamongstakeholdersiscriticaltoaddressthesechallenges.Governments,industrygroupsandbusinesses

areincreasinglyworkingmoreeffectivelytogethertoestablishglobalstandardsfordataprivacyandsecurity,harmonize

approachesandpromotecross-bordercooperation.

Increasedharmonizationandcollaborationwouldsimplifycomplianceandenhancecybersecurityresilience.

Inthefaceofrisingcyberrisks,stricterregulationsand

increasinglysophisticatedtechnology,properdesign

andgovernanceisanecessaryfoundationforbalancinginnovationwithresponsibleriskmanagement.Proactive,thoughtfulandintegratedapproachestodataprivacyand

securitywillbecomeincreasinglyimportanttoefficientlynavigatechallengesandcaptureopportunities.

Privacybydesign

Privacybydesign–embeddingprivacyfeaturesinto

products,servicesandprocessesfromtheirinception–hasbecomeacornerstonefororganizationsprioritizingdata

protection,particularlyintheAIage.Byaddressingprivacy

concernsearly,businessescanensurecompliance,reducerisksandbuildconsumertrust.Engaginginprivacybydesigncanhelptoreducethelikelihoodthatpersonalinformation

usedfortrainingofAImodelsisinappropriatelydisclosed

intheresultsproducedbythemodelsorthatpersonal

dataisincorporatedintotrainingdatawithoutappropriate

considerationandmitigations.Thewidespreadadoptionofprivacybydesignsignalsashiftinattitudestowardprivacyfromtreatingprivacyasastrategicassetratherthanamereafterthought.Companiesembracingprivacybydesignarealsobetterabletodemonstrateaproactivecommitmenttotransparencyandresponsibility,meetingtheexpectationsofregulatorsandconsumersforethicaldatahandlingandAIdevelopment.

Cyberattacks

Cyberattacks,oftensupportedbyAI-poweredtools,are

morefrequentandsophisticated,creatingsignificant

risksfororganizationsandgovernmentsworldwide.For

example,Chinesestate-linkedhackers,knownas“Salt

Typhoon”,infiltratedglobaltelecommunicationsnetworks,compromisingsensitivecommunicationsofseniorofficials.Integratingsecuritybydesignisessentialtowithstandingthesecyberattacksandenhancingdigitalresilience.

11Globalartificialintelligence(AI)solutions

MichaelPark

Partner,MelbourneD+61391948313

michael.park@

Asorganizationsaroundtheworld

continuetoexperimentwithAIsolutionsandprogresstowardsimplementing

AIsystemsaspartoftheirinternal

businessprocessesandproducts,manyorganizationsareconfrontedwithastarkchoice:whetherto“build”or“buy”anAIsolutiontomeettheirneeds.

Unfortunately,thereisnoeasyor“one-size-fits-all”

answertothisquestion.Ontheonehand,many

smallerorlesstechnicallysophisticatedorganizationslacktheinternaltechnicalcapabilityorresources

tobuildortraintheirownAIsolutionsfromscratch.Accordingly,theseorganizationsaretypicallyseekingtoprocureAIsolutionsfromthird-partyproviders.

Aspartoftheseprocurementactivities,organizationsneedtograpplewithnewtwistsonarangeoftypicallegalissues–includingownershipofAIoutputs,

re-useofcustomers’inputsanddataastrainingdataforthesupplier’sothercustomers,

andpotentialprivacyandsecurityconcernswherepersonalinformationisusedasaninput–aswellasnovellegalissues,suchasliabilityforso-calledhallucinationsintheoutputofAImodelsandotherpotentialperformanceissues.

Ontheotherhand,largerortechnically

sophisticatedorganizationsmayhavetheinternal

capabilitytobuildtheirowntailoredAIsolutions.In

somecases,the“build”optionmaystartwithusingapubliclyavailableoropen-sourceAImodelthat

theorganizationdeploys,refinesandtrainsitself

usingitsownproprietarydatasets.Increasingly,thedeploymentofcertaintypesofAIsolutionscanalsorequiretheuseofspecializedcomputinghardware

toachievethebestpossibleperformance.Asaresult,organizationsthatareseekingtobuildandtraintheirownAIsolutionsarealsohavingtoconsiderwhethertopurchaseandhostthenecessarycomputing

hardwarethemselvesorwhethertoobtainaccesstosuchhardwareviathird-partyproviders(ina

mannersimilartocloudcomputing).Consequently,mostAIsolution“builds”necessarilyinvolvesomeelementof“buy”aswell.

Formultinationalorganizations,theprocurement

anddeploymentofAIsolutionsonaglobalbasis

presentsadditionalchallenges.Thegovernmentsof

variouscountriesaroundtheworldaretakingdifferingapproachestotheregulationofAI,rangingfroma

moreprescriptiveapproachfoundintheEuropean

Union’sAIActtoamoretargetedorrisk-based

approachadoptedbycountriessuchasAustralia.

Inlightofthisevolvingregulatorylandscapearound

theworld,weareyettoseeanemergingorsettled

consensusonwhata“market”positionisonvarious

contractualtermsforthesupplyofanAIsolution.Thiscouldbeimpactingmultinationals’“corporateagility”i.e.theirabilitytoquicklyadaptandrespondtothe

opportunitiesofferedbyAI.Despitethechallenges,

weareseeingorganizationsendeavortoaddres