CMS: AI will bring increased risk of litigation

Nearly seven in ten corporate counsel and risk managers (69%) say their organization will make greater use of new technologies such as artificial intelligence (AI) in the coming years. This is one of the main findings of a survey of more than 500 corporate legal advisers and risk managers from several sectors around the world which was published in Technological transformation: managing risks in a changing environment, a new technology report from international law firm CMS.

However, the use of new technologies also involves risks. More than half (56%) of respondents expect an increase in AI-related litigation, while half (50%) believe that the use of AI technologies will lead to risks and litigation that cannot currently be predicted.

“The study shows that most companies expect intellectual property, trade secrets, business intelligence and smart contracts to be a key source of litigation over the next three years. With the exception of intellectual property, these are new realities that only a few years ago did not even exist in the form in which we see them.
New technologies have become the most relevant and valuable asset of companies, beyond the tangible assets that appear on the balance sheet, and therefore must be protected, and they will be a key source of litigation,” says Javier Torre de Silvaresponsible for CMS’s global telecommunications group and CMS’s TMC department in Spain.

The next three years will see new types of litigation

The sources of litigation expected over the next three years are different from the past three years and reflect the evolution of technology and the legal world.

Respondents highlight compliance and regulatory issues (65%); performance or service levels of IT vendors and outsourcing partners (61%); and intellectual property (IP) and trade secrets (52%) as top sources of litigation over the past three years.

However, over the next three years, respondents expect litigation to be driven by intellectual property and trade secret issues (62%); issues related to the use of AI (56%), smart contracts (55%) and cryptocurrencies (52%); and cloud services (51%).

“As the adoption of new technologies is a fundamental vector of business competitiveness, our experience shows us that the role of legal teams (both internal and external) is crucial both to minimize the risks of their implementation and to deal with to legal uncertainty. (and possible litigation) of these risks which, although minimized, cannot be totally eliminated. a In this regard, the new challenges posed by the implementation of new technologies will require unique approaches and solutions,” says Jorge Sanchez, Partner in the TMC and Litigation departments in Barcelona.

New forms of dispute resolution are needed

More than half (57%) of respondents agree that new forms of dispute resolution should be used to resolve disputes arising from new technologies, while only a third (34%) expect disputes arising AI technologies follow the same principles as non-AI. disputes. This highlights potential dissatisfaction with current methods of dispute resolution and whether they are “suitable” for future technology disputes, where multi-vendor, cloud and platform transactions are likely to become more where an ‘on-platform’ method of dispute resolution, possibly powered by AI, might be preferred.

CMS: AI will bring increased risk of litigation

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