Dr. Barbara Grunfeld, MBA, is a founding partner ofThe Shift Co.uy, a consulting firm specializing in strategy, board management, and leadership. She is the executive director ofHorizon.IA, a company focused on using artificial intelligence to identify inefficiencies and optimize workflows to achieve faster and smarter results. In addition, she teaches Law and Technology in theComplex Technology Contracts program. She is also a faculty member in the Technology Management Program,theMaster’s in Digital Business, and the Master of Business Administration (MBA).
Regulations in the technology sector face constant challenges due to the rapid pace of digital innovation. When negotiating technology contracts, Grunfeld identifies three major regulatory challenges:
-
Outdated regulations
Regulation tends to lag behind innovation, creating legal uncertainty. In the case of artificial intelligence (AI), there is still no uniform framework governing legal liability when a generative model produces erroneous or biased content. “Companies must act with professional ethics in this new field and set standards for self-regulation in this highly topical, sensitive, and relevant issue,” the expert recommended.
-
Multi-jurisdictional regulation
Technology companies that operate globally must comply with various regulations (GDPR, CCPA, LGPD), which complicates contract drafting and increases costs and legal risks.
-
New business models
Models such as open-source SaaS and the use of AI present challenges regarding contractual liability, transparency, and data rights, requiring well-drafted contracts.
To mitigate these risks, Grunfeld recommends designing agreements with a “compliance-first” approach and including legal flexibility clauses that allow for adaptation to future regulations. This approach would not only minimize risks but also “ensure that the technology can scale without unexpected legal restrictions.”
The Impact of Disruptive Technologies on Contracts
Artificial intelligence and smart contracts are redefining the lifecycle of technology agreements, from their creation to their fulfillment.
Grunfeld emphasized that the use of generative AI models in contract analysis requires specialized tools to ensure accurate interpretations.
The adoption of these technologies will depend both on regulatory developments and on their integration with traditional contractual systems.
To minimize risks, he recommended:
- Include algorithmic audit clauses in contracts involving AI.
- Develop hybrid mechanisms that balance technology with traditional contracts.
- Ensure regulatory compliance across multiple jurisdictions.
Changes in Marketing Models and Their Legal Impact
The digitization and scalability of cloud services have transformed business models, giving rise to new contractual and regulatory requirements. Grunfeld highlights the shift from perpetual licenses to subscription and pay-per-use models, which has necessitated changes to service level agreements (SLAs) and regulations governing data storage and processing.
Furthermore, the global expansion of technology companies has driven the inclusion of flexible jurisdiction clauses and international dispute resolution mechanisms. To ensure legal certainty, Grunfeld recommends designing agreements with adaptable provisions and establishing clear performance metrics in variable-rate contracts.
The Future of Technology Regulation
Regulation is evolving to address the challenges posed by new technologies, but the pace of technological change continues to outstrip the ability of regulatory frameworks to adapt. “Regulation alone is not enough to ensure a balanced technological ecosystem. It must be accompanied by a deep understanding of technology and an equitable distribution of responsibilities among all stakeholders,” Grunfeld noted.
Looking ahead, regulation could move in three directions:
- Government-imposed regulation, including mandatory regulatory frameworks such as the AI Act—a regulation on artificial intelligence adopted by the European Parliament in March 2024—.
- Corporate self-regulation, in which technology companies themselves establish principles of ethics and transparency.
- Adoption of international standards aligned with organizations such as the OECD and ISO in the field of AI.
Regardless of the approach, Grunfeld emphasizes the importance of flexible frameworks that allow for technological development without compromising legal certainty. In conclusion, “technology must be integrated into society without compromising fundamental rights such as security, identity, and equal opportunity.”