USA Law and Practice Contributed by: Jeffrey Harvey, Randall Parks, Andrew Geyer and Cecilia Oh, Hunton Andrews Kurth LLP
Hunton Andrews Kurth LLP 200 Park Avenue
New York NY 10166 USA
Tel: +1 212 309 1000 Fax: +1 212 309 1100 Email: info@hunton.com Web: www.hunton.com
1. Market Conditions 1.1 IT Outsourcing
• IP ownership in generative AI and agentic AI out - puts and learnings is currently somewhat of a “hot button” issue, as many cases litigating ownership of the various outputs continue to work their way through the courts. • AI models may have been trained on “biased” models or models that are overly reliant on data without additional context, thereby increasing the potential for discriminatory hiring practices. • Privacy concerns are also front-of-mind as con - cerns grow over the potential of AI models to “scrape” personal information and use it in a man - ner not intended by the data subject. • Given the potential for these technologies to remove the “human” element from the workforce, there may be personnel issues for HR to review. • Agentic AI involves the most autonomous form of AI being rolled out by service providers, so identify - ing and adequately describing outside limitations and liability for exceeding those limitations are paramount. 1.2 Business Process Outsourcing (BPO) Key market developments in BPO include: • an increased focus on social media as the primary tool for communicating with customers; • the provision of services and solutions that are supported by robotics and various forms of AI; and • swings in emphasis between value/innovation and cost savings, depending on industry-specific con - ditions and opportunities.
Key market developments in IT outsourcing include: • the continued shift of physical IT assets to cloud environments and from software programs to soft - ware as a service (SaaS) environments; • the provision of services and solutions that are supported by various forms of AI, including primar - ily generative and agentic AI; • the provision of customer-usable tools and tech - nologies that are powered by AI; and • the digital transformation of traditional business data flows into revenue-generating products and analytical tools, as buyers of services continue to focus increasingly on the internet of things (IoT) and the transformation of their businesses into digital offerings. From a legal perspective, these new technologies and approaches further break up traditional sole-source agreements into a multitude of different agreements. More providers are competing for and providing smaller chunks of services, with more demands being placed on client procurement departments. Of the above-mentioned factors, generative AI and agentic AI are currently the trendiest and are also likely to have the most significant near-term impact on pro - viders and customers. The following are among the other issues arising in this context.
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