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General counsel face growing pressure to support aggressive AI adoption. At the same time, they must protect their organization’s legal and governance posture.This video directly addresses that tension.Employee resistance to AI rarely stems from a dislike of technology. It stems from unmanaged uncertainty about job security, performance evaluation, and data use. That uncertainty can lead to shadow AI use and even employee sabotage.Watch to learn how to:

  • Spot early warning signs of AI-related behavior risk among employees.
  • Understand how those behaviors threaten data integrity, privilege, and compliance.
  • Reframe AI risk management as a legal function, not an IT problem.

The…
Continue Reading When Employees Don’t Trust AI: Sabotage, Shadow AI, and What In-House Counsel Should Know

Artificial intelligence is moving into government contract performance.

  • AI now supports scheduling, logistics, and production planning on federal contracts.

Defense contractors are asking a critical question.

  • Does using AI on a Navy or other government contract give the government rights to your proprietary systems, methods, or data?
  • The short answer is no. The real risk lies elsewhere.

Vague AI transparency and explainability clauses can quietly expand disclosure obligations.

  • This contract language can erode trade secret protections that have existed for decades.

This video explains how government IP rights apply to AI-assisted performance and identifies the exposure points that general counsel…
Continue Reading Does Using AI on a Government Contract Put Your Trade Secrets at Risk? What Defense Contractors Need to Know

Artificial intelligence is reshaping how lawyers research, draft, and advise.But AI has introduced two legal risks that users cannot ignore.

  • Courts are sanctioning attorneys for AI-generated errors in court filings.
  • And a February 2026 federal decision held that a client’s independent use of a public AI chatbot was not protected by attorney-client privilege.

This video explains both risks, outlines the decisions behind them, and identifies steps in-house counsel can take now, including AI-use policies and guidance for legal departments.

#ArtificialIntelligence #LegalEthics #AttorneyClientPrivilege #AILaw #LegalTechnology #industriallawyer #insurancelawyer #commericallitigation #privacylaw #datasecuritylaw #whitecollardefense #defenselaw #classactionlawsuits #AIlawsuits #AIdatabreach

Continue Reading When AI Becomes a Liability: Hallucinated Case Law, Sanctions, and the Privilege Waiver Risk

If you are a Navy contractor, ship repair company, or defense supplier wondering whether using AI puts trade secrets at risk, you are asking exactly the right question. I see why this concern is growing. Federal agencies now operate under formal AI governance and acquisition guidance, which means contractors should expect more questions about oversight, documentation, and how AI-assisted decisions are made.My short answer is this: AI itself does not automatically hand your trade secrets to the government. The real risk usually comes from contract language, deliverable definitions, disclosure obligations, vendor terms, data handling, and how your team responds when…
Continue Reading Does Using AI Put Trade Secrets at Risk?

Coding
Christopher Gower, Unsplash

Introduction and Background

In Feb. 2026, a public-private partnership headed by the U.S. Department of the Treasury concluded an investigative process aimed at strengthening cybersecurity and risk mitigation for AI in the financial services sector. The partnership consisted of executives from over 100 financial institutions, U.S. and international agencies, federal and state financial regulators, and other key stakeholders. One of the partnership’s key deliverables announced at the conclusion of the investigation is the Financial Services AI Risk Management Framework (“Financial Services AI RMF”), which adopts and expands the AI Risk Management Framework provided by the National Institute of Standards and…
Continue Reading Financial Services AI Risk Management Framework: Expanded Controls for the Financial Services Industry

SAP is under formal EU antitrust investigation.

  • SAP is well known for using aggressive tactics to limit customers’ support options and creating questionable revenue-generating events.
  • What does this mean for you?

That’s what I discuss in this clip from my upcoming video.

#erpcommunity #erpfailure #saps4hana #oraclecontracts #softwarelawyer #sapservices #saphanacloudplatform #saas #erpcloud #teamtaft #sapcontracts #oraclelawsuit #oraclefailure #oracletermination #saptermination

Continue Reading SAP Under EU Investigation

If you are moving fast with generative tools, the best legal practices when you use AI are not optional. They are what keep a promising brand from turning into a trademark dispute, a false advertising claim, or a costly rebrand.What are the best legal practices when you use AI for branding?The best legal practices when you use AI for branding are to keep meaningful human control, clear names and slogans before launch, verify every marketing claim, review vendor terms, document creative decisions, avoid lookalike prompts, and require legal signoff before a campaign goes live. That answer matters because the…
Continue Reading AI Efficiency Does Not Equal Legal Protection for Your Brand

Follow @alesnesetril on Instagram for more dope photos! Wallpaper by @jdiegoph (https://unsplash.com/photos/-xa9XSA7K9k)
Ales Nesetril, Unsplash

The Financial Industry Regulatory Authority (“FINRA”) and the U.S. Department of the Treasury (“Treasury”) (as part of a public-private partnership) have recently issued guidance regarding the use of AI by the financial services industry. This alert summarizes certain AI-related updates from the 2026 FINRA Annual Regulatory Oversight Report (the “Report”), and the Treasury partnership’s recently published AI Lexicon and Financial Services AI Risk Management Framework.

FINRA

FINRA’s 2026 Report contains a new section specifically devoted to generative AI (“GenAI”). The Report clarifies that “FINRA’s rules… and the securities laws more generally, continue to apply when firms use GenAI…
Continue Reading AI in the Crosshairs: New Guidance From FINRA and Treasury

AI lawsuits are increasing as businesses use AI-generated logos and brand names without trademark clearance. Learn how the Lanham Act applies and how Taft can help mitigate risk.Artificial intelligence is transforming modern branding. Companies now use AI to generate product names, logos, taglines, social media campaigns, and even full-scale brand launches in minutes.The efficiency is undeniable. The legal exposure, however, is often overlooked.As discussed in recent legal commentary, businesses increasingly face AI lawsuits tied to trademark infringement, false designation of origin, and intellectual property disputes stemming from AI-generated branding.At Taft, attorneys working at the intersection of intellectual property, emerging…
Continue Reading AI Lawsuits: The Legal Risks of AI-Generated Branding

Insurance coverage for trademark infringement lawsuits is far narrower than most executives realize. In this video, Bill Wagner, a partner in Taft’s Indianapolis office, explains what CGL policies may cover, why willfulness allegations destroy coverage, and how insurer-appointed defense counsel can put companies at risk.

Continue Reading Trademark Lawsuit Coverage Gap Most Executives Miss

Under new regulations effective January 1, 2026, California regulators now expect businesses to conduct an annual “cybersecurity audit” that assesses “how the business’s cybersecurity program protects personal information from unauthorized access, destruction, use, modification, or disclosure; and protects against unauthorized activity resulting in the loss of availability of personal information.”Now is the time to prepare for these requirements.As explained below, these requirements are detailed and contemplate a rigorous, professional, independent, evidence-based audit. Audit results must be shared with the California regulator under penalty of perjury.Applicability & Distinction from Risk AssessmentsCalifornia cybersecurity audit requirements apply generally to businesses which process the…
Continue Reading Understanding California Cyber Audit Requirements

Under newly implemented regulations of the California Consumer Privacy Act (CCPA), California now requires a formal risk assessment “before initiating any processing activity” of certain (sensitive) sorts. The regulation explicitly contemplates that businesses will complete risk assessments now, in 2026.Eventually, such risk assessments – including those completed this year – must be signed by an executive and submitted to the California regulator under penalty of perjury.Businesses and executives subject to the CCPA must prepare now to address these requirements. In particular, the regulation may impact businesses and services including SaaS/technology firms, payments or financial technology solutions, services, consumer services, employment…
Continue Reading New CCPA Risk Assessment Requirements Now In Effect

Warranties and representations, ownership of intellectual property, limitations of liability, and indemnity are among the most important issues when negotiating a software contract with an AI Vendor.

  • What’s reasonable?
  • What should you ask for?

That’s what I talk about in my latest video.

#erplawyer #erpcommunity #erpfailure #saps4hana #oraclecontracts #softwarelawyer #sapservices #saphanacloudplatform #saas #erpcloud #teamtaft #sapcontracts #oraclelawsuit #oraclefailure #oracletermination #saptermination

Continue Reading Negotiating An AI Contract? Here’s What You Need To Know

Artificial Intelligence (AI) is rapidly transforming the business world, moving from a niche technology to an integral part of operations across nearly every industry. Whether you are acquiring a technology company or simply using AI services such as customer chatbots or data analysis programs, businesses are being exposed to a new class of legal risks. To address these unique challenges, businesses and investors are increasingly including AI-specific representations and warranties in contracts and agreements. These clauses are becoming a crucial method for effectively allocating and mitigating AI-related uncertainty.Risks, Benefits, and Key ConsiderationsWhile the benefits of AI in terms of efficiency…
Continue Reading The Expanding Prevalence of AI Clauses in Contracts

Protecting trade secrets starts with preparation. Building strong systems and habits helps keep valuable information secure and limits the risk of leaks.

  • Inventory Trade Secrets: List what information is confidential and record its value. Keeping good records helps if you ever need to prove your rights.
  • Regular Employee Training: Teach employees how to recognize and handle trade secrets. Refresh this training regularly so protocols stay top of mind.
  • Implement Strong Agreements: Have anyone with access sign clear contracts that set expectations during and after their time with your business. Written agreements make enforcement easier if there’s ever a problem.
  • Control

    • …
    Continue Reading Six Practical Steps for Protecting Trade Secrets

    ERP vendors are notorious for creating a false sense of urgency with arbitrary support deadlines, promises of expanded functionality, and artificial intelligence to force customers to the Cloud.

    • Vendors are not pushing you to the Cloud for your benefit.
    • Just because a vendor is sunsetting support doesn’t mean you don’t have options.
    • One of the worst options is paying the vendor a premium for extended support beyond the drop-dead date.

    The reality is that the Cloud is not always better; it can be detrimental.

    • If you have a highly customized system that incorporates your business processes and provides you with

    …
    Continue Reading The Truth About ERP Upgrades And Migrating To The Cloud