On January 29 – 31, 2025, Covington convened authorities from across our practice groups for the Sixth Annual Technology Forum, which explored recent global developments affecting businesses that develop, deploy, and use cutting-edge technologies. Seventeen Covington attorneys discussed global regulatory trends and forecasts relevant to these industries, highlights of which are captured below.  Please click here to access any of the segments from the 2025 Tech Forum.

Day 1: What’s Happening Now in the U.S. & Europe

Early Days of the New U.S. Administration

Covington attorney Holly Fechner and Covington public policy authority Bill Wichterman addressed how the incoming administration has signaled a shift in technology policy, with heightened scrutiny on Big Tech, AI, cryptocurrency, and privacy regulations. A new Executive Order on AI aims to remove barriers to American leadership in AI, while trade controls and outbound investment restrictions seek to strengthen national security in technology-related transactions. Meanwhile, the administration’s approach to decoupling from China is evolving, with stricter protectionist measures replacing prior subsidy-based initiatives.

Cross-Border Investment

Covington attorney Jonathan Wakely discussed the role of ongoing geopolitical tensions in shaping cross-border investment policies, particularly in technology-related transactions. He noted that the Committee on Foreign Investment in the United States (CFIUS) remains aggressive in reviewing deals that could pose China-related risks. The new Outbound Investment Rule introduces restrictions on U.S. persons investing in Chinese companies engaged in certain AI, quantum computing, and semiconductor activities.

Updates on European Tech Regulation

Covington attorneys Sam Choi and Bart Szewczyk explained how, in light of the Draghi Report on European competitiveness and growing geopolitical pressures, the European Commission is planning to focus on “European competitiveness” in this term. The European Commission has announced plans to increase investments into its tech sectors, and find ways to ease the regulatory burden on companies. It is expected that the EU will focus on implementing, and potentially streamlining, its existing tech regulatory regime – rather than adopting new tech regulations that will impose added obligations on companies. The EU already has in place a robust regulatory regime covering privacy, cybersecurity, competition, data sharing, online platforms, and AI. In 2025, the recently adopted AI Act and the Data Act will start to apply, so companies should prepare for their implementation.  

Day 2: So Much Data, So Many Rules

New Paradigms for the Regulation of Data in the EU & U.S.

Covington attorneys Libbie Canter and Fredericka Argent provided insights on the changing approach to the regulation of data. They first discussed the EU’s new Data Act, which introduces a swathe of new rules on businesses, including data-sharing obligations for IoT devices, obligations to facilitate switching between data processing services and interoperability requirements. They further explained how, in the U.S., a fragmented state-level approach persists, with multiple privacy laws creating compliance challenges. The DOJ’s new rules on bulk sensitive personal data introduce additional considerations for companies handling large-scale consumer information.

Data Rights in Transactions

Covington attorneys Lily Hines and Gabrielle Ohlsen outlined the challenges of protecting data rights in the context of transactions, particularly in the context of data rights being an increasingly fundamental component of licensing and commercial transactions. Businesses may need to assess the rights they are relying on to protect data when structuring licensing deals involving data assets. Questions surrounding data ownership—particularly in AI training datasets—have become central to negotiations.

Data Centers, Energy & Infrastructure

Covington attorneys Jayni Hein and Richard Keenan addressed the emergent role of data centers as a major driver of global energy demand, including due to AI workloads. With some studies finding that AI computing consumes up to eight times more power than traditional cloud services, data centers and energy utilities are seeking solutions to meet growing demand. Some challenges associated with this evolving landscape include grid capacity constraints slowing down data center expansion and climate and environmental regulations affecting site selection and operation. But new solutions include on-site renewable energy plus storage, as well as small modular reactors. Companies must plan for energy-intensive AI infrastructure, balancing efficiency, sustainability, and regulatory requirements.

Day 3: AI Transformations in the Real World

Global Trends in EU & U.S. AI Regulation

Covington attorneys Moritz Hüsch and Jayne Ponder explained how AI legislation is moving toward a risk-based approach across the EU and U.S. The EU AI Act, for instance, introduces strict compliance requirements for high-risk AI systems, while the U.S. is taking a state-led approach, with Colorado, Virginia, and Texas passing comprehensive AI laws. Meanwhile, new regulatory concerns emerge around frontier AI models, security of training data, and mandated audit mechanisms.

Ethics, Governance & Managing Risk

Covington attorneys Micaela McMurrough and Josh Gray discussed the growing need for companies to embed AI ethics and governance into their compliance programs to mitigate litigation risks and regulatory scrutiny. They further addressed how AI bias, audit rights, and accountability measures are now at the forefront of corporate governance strategies. Accordingly, businesses must ensure that AI models are trained on diverse datasets, regularly tested for bias, and deployed with monitoring mechanisms that detect discriminatory outcomes. As AI litigation increases, organizations face growing pressure to demonstrate a commitment to ethical AI practices—ensuring that their models are not only compliant, but also aligned with industry best practices and societal expectations.

AI Litigation

Covington attorneys Teena Sankoorikal and Louise Freeman shared insights on the current landscape for AI-related disputes, explaining that the rise of AI litigation signals a new era of legal challenges for tech companies. Recent cases, such as N.Y. Times Co. v. Microsoft Corp., highlight copyright disputes over AI-generated content. Accordingly, companies that are regularly using AI should expect heightened litigation risks, particularly around copyright, bias, and misinformation. With courts still shaping AI liability frameworks, companies should be proactive about addressing potential AI-related risks by deploying such tools as IP protection, contract structuring, and risk assessments.

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The regulatory landscape for AI, data, and tech investment is rapidly shifting, and businesses must stay agile in adapting to these changes. With increasing scrutiny on AI governance, cross-border data flows, and energy-intensive computing, organizations will need to enhance their compliance frameworks while embracing innovation responsibly. Covington’s Inside Global Tech blog will continue to publish insights and updates to help tech companies stay ahead of the curve.

For more insights from the 2025 Technology Forum, connect with our team or explore Covington’s AI Toolkit and Technology Industry Insights pages. We also hope you will join us on May 14 for our Fourth Annual Covington Robotics Forum – a highly concentrated 90-minute exploration of the most pressing legal and regulatory issues facing companies that are developing and deploying robotics and connected devices.