Husch Blackwell Webinar Highlights AI Gaps in Enterprise Contracts
Husch Blackwell will present a May 19 webinar on new AI-related risks in enterprise contracts.
Why it matters: Legal teams face mounting exposure as AI integrates into business systems, but most contracts lack up-to-date AI terms. Weak governance and unclear accountability can trigger compliance failures, contractual disputes, and privacy breaches.
- Husch Blackwell’s May 19 webinar tackles AI contract risks for in-house counsel and legal leaders.
- Only 7% of organizations have comprehensive AI governance while 93% use AI across operations.
- Contracts often miss current AI-specific standards, putting companies at risk for costly regulatory violations.
- Data privacy, unclear vendor obligations, and lack of oversight are top legal concerns as AI adoption climbs.
Artificial intelligence is now standard in corporate platforms, yet most legal teams have not updated contracts to reflect this reality. This gap exposes companies to substantial uncertainty and compliance risk.
- On May 19, Husch Blackwell’s webinar will guide legal professionals on identifying and mitigating new exposures. Speakers Kris Kappel and Maggie Mannebach will focus on how to update contract clauses for AI, allocate liability, and strengthen compliance protocols.
- Most organizations now use AI in daily operations—tools for automation, analytics, or contract review are common. However, a recent Trustmarque survey shows only a small fraction—just 7%—have strong frameworks for AI oversight. Only 8% have embedded oversight throughout development cycles, raising risks of regulatory or contractual failure.
- Contracts that ignore AI can miss vital protections. Common pitfalls include unclear responsibility for AI errors, failing to ensure data privacy, and omitting audit rights. As highlighted by Lex Blog, businesses risk "ticking time bombs" from outdated terms as AI use surges.
- IBM cautions that while AI can automate compliance and improve tracking, it raises challenges with data protection and vendor integration. Effective contract language and clear audit procedures are key.
- Legal teams should review privacy protections and vendor obligations as part of broader AI risk management, drawing on frameworks like the Center for Internet Security’s security protocols for guidance.
As AI adoption climbs, firms must close contractual gaps and build in proper accountability before problems arise. Skipping these updates could leave companies vulnerable to penalties and litigation.
By the numbers:
- 93% — Organizations using AI today (Trustmarque)
- 7% — Organizations with strong AI governance frameworks (Trustmarque)
- 8% — Organizations that have embedded AI oversight in their processes (Trustmarque)
What's next: Webinar registrants will receive follow-up contract templates and an AI provisions checklist after the May 19 session.