From a legal standpoint: Commercial contracts in the era of digital regulation

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Do existing contract templates still reflect business reality?

Contract templates in the 21st century

In recent years, economic activity in the digital space has been subject to a new wave of EU regulation. The Digital Services Act (DSA), the Digital Markets Act (DMA), and the Artificial Intelligence Act (AI Act) are no longer issues reserved exclusively for the largest technology companies. Increasingly, they also affect the day-to-day contractual practice of businesses, particularly those using digital tools, online platforms, automation systems, customer data, or AI-based solutions.

Commercial contracts drafted several years ago may no longer reflect the current business model. Many templates still lack provisions regarding the use of AI, liability for automatically generated content, principles of data processing in external tools, information obligations, cybersecurity, transparency of digital services, or allocation of risk between the parties.

Not every company will be directly subject to all obligations arising from the DSA, DMA, or AI Act. Nevertheless, these regulations increasingly shape counterparty expectations, compliance standards, procurement processes, and the content of concluded agreements.

Why it matters – KR Group case study:

  • A technology company providing data analytics services to corporate clients used a framework agreement drafted in 2021, which was correct from a traditional civil law perspective.
  • The agreement did not anticipate that the company would begin using artificial intelligence-based tools during service delivery.
  • The client requested information on how the tool operates, data usage principles, compliance documentation, the level of human oversight over outputs, and liability for potential analytical errors.
  • The existing agreement did not specify whether data could be processed using external technological tools, who is responsible for outputs generated with AI support, what information the company should provide to the client, or whether the client may object to the method of service delivery.
  • As a result, the next phase of the project was put on hold, and the parties had to begin negotiations on an amendment, which only later regulated issues essential for cooperation.

The most important step – verification

It is therefore necessary to verify whether the commercial contracts used within your organisation reflect the current cooperation model, particularly in relation to data use, AI, external systems, technology subcontractors, and information obligations. A well-structured contract not only organises the business relationship with a counterparty but also protects the company when technology begins to play a significant role in service delivery.

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