In today’s globalized economy, companies frequently engage in cross-border transactions, necessitating contracts that are not only legally compliant but also aligned with international best practices and standards. The European Union (EU) Parliament’s adoption of the “AI Act” on March 13 and the expansion of international trade laws and regulations underscores the importance of ensuring that contracts with overseas entities remain up to date and precise. This article provides a nonexhaustive overview of key terms that should be considered to enable businesses to effectively integrate international standards into their contractual agreements when managing AI or international trade to minimize risk, enhance transparency and build trust among the involved parties.
Artificial Intelligence
In an era of heightened focus on artificial intelligence (AI), regulations are emerging across various jurisdictions and industries. The EU AI Act will come into effect in the coming months, which will impact many businesses that use AI in the EU or who offer their AI products in the EU. In addition to U.S. state and federal laws that have passed or that are under consideration, other countries are working on legislation, and regulatory agencies around the world have indicated that they will use their current authority to regulate AI. Ensuring compliance with diverse AI-related laws and regulations while contracting across different jurisdictions requires careful attention to regulatory requirements and proactive risk management strategies.
