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. Here are some of the key terms that businesses should consider to enable effective integration of international standards into their contractual agreements when managing artificial intelligence (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 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 that offer their AI products in the EU. In addition, numerous U.S. state and federal laws have passed or 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.