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Turning Crisis into Strategy: Contracts, projects and disputes at a global chokepoint
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Chambers USA 2025, Artificial Intelligence
Chambers USA 2025, Artificial Intelligence
Legal 500 Deutschland 2026, Artificial Intelligence
Legal 500 Deutschland
2026
Chambers USA
2025
AI governance is not just about risk mitigation; it is a tool to ensure that AI systems are robust, effective, and aligned with regulatory expectations. AI governance strategies can support innovation by enabling sustainable benefits and ensuring that AI technology and solutions can deliver on their full potential. Key elements of a pro-innovation global AI governance strategy may include fostering confident and trust in the technology, alignment with corporate culture and ethical considerations, and global harmonization with legal and regulatory compliance frameworks. Hogan Lovells can assist companies embed governance practices into their enterprise-wide AI strategy to achieve efficiency, productivity, and transformative outcomes.
Being an innovative business—especially involving AI—comes with its challenges and legal risks. As AI applications continue to advance and become integrated into various business models and industries, businesses’ exposure to AI risk is likely to increase. These disputes can disrupt business, leading to significant financial and reputational damage, both locally and globally. Companies and organizations can safeguard and mitigate against such risk by 1) ensuring that the AI application was programmed correctly; 2) maintaining documentation to show that the AI input was correct, appropriate, and not corrupted; 3) sufficiently supervising the AI application and its output; and 4) establishing guardrails against users misusing the AI application. Hogan Lovells helps companies stay informed on the legal landscape surrounding the development, operation, and use of AI applications, consider risk mitigation practices to maximize safeguards, and monitor and evaluate the output and performance of AI systems.
AI development and use often relies on substantial processing of personal data, meaning AI agents can shift focus to existing global privacy laws and the regulators enforcing those privacy compliance obligations to understand how to address unique compliance challenges—such as fairness, transparency, data minimization, and accuracy—in the AI context. Product teams may consider working with privacy counsel throughout the AI lifecycle, from incorporating privacy by design, to mitigating privacy risks in training, deployment, and ongoing monitoring. Key considerations for any organization include confirming the organization has provided sufficient notice and obtained the necessary rights to use personal data to train AI tools or to process personal data using AI tools. The key to navigating these challenges is to adopt effective practices that support AI innovation, which Hogan Lovells is well-placed to do, all while meeting business objectives and promoting compliant, forward- thinking, and privacy-protective activities.
Businesses using, developing, and deploying generative AI face a complex and evolving legal landscape when it comes to protecting their rights in the output of AI systems. There are several key considerations and strategies that businesses can adopt to safeguard their IP rights under current AI law through 1) establishing ownership and authorship through clear agreements with AI tool providers and internal policies; 2) assessing the training data used by the AI tools they employ to understand the potential risks of derivative work claims; 3) seeking indemnification clauses from AI developers to protect against liability for copyright infringement claims related to the AI's output; 4) understanding if their use of AI-generated outputs constitutes transformative fair use; 5) ensuring compliance with applicable open-source or proprietary license agreements; 6) avoiding disclosing trade secrets; 6) monitoring for trademark infringement; 7) and adopting robust contracts and policies. Hogan Lovells helps businesses position themselves in light of emerging and open issues, counsels rightsholders around evolving policies and requirements, and litigates disputes as they arise.