Introduction and BackgroundIn 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 Technology
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Taft Technology Insights
Latest from Taft Technology Insights
SAP Under EU Investigation
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.
AI Efficiency Does Not Equal Legal Protection for Your Brand
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…
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AI in the Crosshairs: New Guidance From FINRA and Treasury
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…
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AI Lawsuits: The Legal Risks of AI-Generated Branding
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…
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Trademark Lawsuit Coverage Gap Most Executives Miss
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.
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Understanding California Cyber Audit Requirements
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…
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New CCPA Risk Assessment Requirements Now In Effect
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…
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Negotiating An AI Contract? Here’s What You Need To Know
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.
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The Expanding Prevalence of AI Clauses in Contracts
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…
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Six Practical Steps for Protecting Trade Secrets
Protecting trade secrets starts with preparation. Building strong systems and habits helps keep valuable information secure and limits the risk of leaks.
…
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The Truth About ERP Upgrades And Migrating To The Cloud
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
…
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U.S. Trade Secrets In An AI-Driven World
Your company’s most valuable assets may not appear on your balance sheet. They’re in your systems, your processes, your technology, and your people. Trade secrets don’t require registration and don’t expire, but they only remain protected if you actively safeguard them.
This video explains what qualifies as a trade secret under U.S. law and how to know if your company is doing enough to protect its most valuable information.
The Hidden Costs of Cloud Software
Vendors tout cloud software as a cheaper alternative to traditional on-premise solutions.
- While cloud solutions can often be implemented at a lower cost, the cost of accessing and using the cloud solution over the life-cycle of the product is often more expensive than an on-premise solution.
I discuss these issues in my latest video.
Stop ERP Failures: Critical Mistakes to Avoid in Your Digital Transformation
The likelihood that your ERP project will take longer than expected, be more challenging than anticipated, and cost more than initially estimated is exceptionally high.
- Common causes of ERP project failure include inadequate requirements gathering, unrealistic timelines, insufficient testing, and resistance to change.
- What can you do to maximize success?
I talk about this in my latest video.
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Don’t Let a Lawsuit Stop Your Business
When a lawsuit hits your manufacturing business, the last thing you want is uncertainty about your insurance coverage.
In this video, I’ll walk you through how to position your company to recover fast and fully when facing legal trouble. If your operations are evolving, your insurance plan should be too.
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