Outsourcing agreements and Artificial Intelligence: Hints and Tips Part 2 Lexology

In one of our latest blog posts, we went through the first part of our hints and tips on outsourcing agreements and artificial intelligence, covering #1 Technological evolution and benchmarking clauses, #2 Liability and limitations, and #3 Know-how transfer, insourcing and supplier replacement. Below is the second part on: #4 Intellectual Property, #5 Data protection and #6 Cyber risk and Insurance. Where AI systems are employed in the outsourcing of processes there could be a tight interdependency between customer's data and supplier's AI technology processing such data. It follows that customer and supplier must accurately regulate the ownership of the IP rights in the relevant data and technologies within the scope of their relationship. What should be particularly considered by the contracting parties is the ownership of data, databases and of any other protectable item of both parties existing before entering into the contractual relationship (background IP). The parties should also regulate the ownership of IP rights on the customisations of the AI system and on the protectable results thereof generated during the performance of the agreement, if any.