Artificial Intelligence (AI)

In this blog post we set out key practical steps for technology-focused deal-making, having regard to the regulatory, antitrust and foreign investment screening issues identified in our earlier blogs here and here.

Key impacts of technology regulation on deal outcomes

The evolving regulatory landscape is having a significant impact on deal outcomes, including (i) longer timelines due to complex regulatory approval requirements; (ii) higher diligence burden, especially around data, AI and ownership transparency; (iii) greater risk allocation pressure in deal terms; and (iv) increased use of creative structures to mitigate regulatory exposure. Continue Reading Technology Industry Trends and M&A Outlook in the EU and UK, Part 3: Recommendations for Tech M&A and Strategic Transactions

Until the last year, merger control in the UK has been fairly hostile towards tech deals, with a highly interventionist competition authority taking an uncompromising line on global deals; even where those deals had only a limited nexus to the UK. The EU has generally taken a more pragmatic approach, clearing Google’s acquisition of Fitbit in 2020, and Microsoft’s acquisition of Activision in May 2023, following the acceptance of remedies by the tech firms. However, it, too, has taken some more hardline positions, such as prohibiting the Booking.com/etraveli merger based on a novel theory of harm related to the Booking.com travel ecosystem. 

This has all taken place against the backdrop of an explosion of tech regulation (see our prior blog post here). The wave of new rules also introduced new merger filing requirements for those tech firms who have been designated as gatekeepers in the EU (under the Digital Markets Act (DMA) (2022)), or firms with strategic market status in the UK (under the Digital Markets Competition and Consumers Act (DMCCA) (2024)). Just this month the CMA designated Google with strategic market status (SMS) in general search and search advertising services. This comes, almost to the day, two years after the EU’s designation of Google’s parent company and five others as gatekeepers. More tech regulation is on the horizon, for example the remaining parts of the AI Act, on general-purpose AI, are due to enter into force in the EU in August 2026.Continue Reading Technology Industry Trends and M&A Outlook in the EU and UK, Part 2: Antitrust/FDI Environment for Tech

Technology-focused deals are driving many of the largest global M&A and strategic transactions—whether digital infrastructure, artificial intelligence (AI), digital services or gaming. The successful execution of these transactions and ultimate success of the business opportunities promised by them, depends on understanding how emerging technology, regulation and market norms are evolving. In this three-part blog series, from an EU and a UK perspective, we will cover: (1) the new regulatory landscape for tech, (2) the evolving antitrust and foreign investment screening environment and (3) recommendations for planning, structuring and executing technology-focused M&A and other strategic transactions.Continue Reading Technology Industry Trends and M&A Outlook in the EU and UK, Part 1: The New Regulatory Landscape for Tech

The Commerce Department today published a Request for Information (RFI) inviting the public to submit comments on U.S. artificial intelligence exports.  The RFI asks stakeholders to weigh in on aspects of the Department’s new “American AI Exports Program,” an initiative intended to “promot[e] the export of full-stack American AI technology packages.”

The RFI follows from…

Continue Reading Commerce Department Solicits Feedback on AI Exports Program

On 8 October 2025, the European Commission published its Apply AI Strategy (the “Strategy”), a comprehensive policy framework aimed at accelerating the adoption and integration of artificial intelligence (“AI”) across strategic industrial sectors and the public sector in the EU.

The Strategy is structured around three pillars: (1) introducing sectoral flagships to boost AI use in key industrial sectors; (2) addressing cross-cutting challenges; and (3) establishing a single governance mechanism to provide sectoral stakeholders a way to participate in AI policymaking.

The Apply AI Strategy is accompanied by the AI in Science Strategy, and it will be complemented by the Data Union Strategy (which is anticipated later this year).Continue Reading European Commission Publishes Apply AI Strategy to Accelerate Sectoral AI Adoption Across the EU

In a new post by Covington’s Insurance Recovery Group, we discuss the explosive growth of artificial intelligence and cloud computing that has made data centers indispensable to modern business operations, and the complex insurance risks and coverage issues emerging alongside this rapid expansion.

Continue Reading Data Centers: Emerging Risks and Insurance Coverage Considerations

Artificial Intelligence (“AI”) continues to command attention as today’s prominent technological asset, revolutionizing key markets and sectors. Simultaneously, discussions of another advanced technology known as quantum computing have gained traction. Because both technologies expand the universe of problems that can be tackled by computers, one might wonder, if we have AI, do we also need…

Continue Reading Harnessing the complementary power of AI and Quantum Computing

On September 23, 2025, the Italian law on artificial intelligence (hereinafter, “Italian AI Law”) was signed into law, after receiving final approval by the Italian Senate on September 17, 2025. 

The law consists of varied provisions, including general principles and targeted sectoral rules in certain areas not covered by the EU AI Act.  The Italian AI Law will enter into force on October 10, 2025.

We provide below an overview of key aspects of the final text of the Italian AI Law.  For full detail, please see our previous blogpost here.Continue Reading Italy Adopts Artificial Intelligence Law

On September 29, California Governor Gavin Newsom (D) signed into law SB 53, the Transparency in Frontier Artificial Intelligence Act (“TFAIA”), establishing public safety regulations for developers of “frontier models,” or large foundation AI models trained using massive amounts of computing power.  TFAIA is the first frontier model safety legislation in the country to…

Continue Reading California Governor Signs Landmark AI Safety Legislation

The California Civil Rights Council and the California Privacy Protection Agency have recently passed regulations that impose requirements on employers who use “automated-decision systems” or “automated decisionmaking technology,” respectively, in employment decisions or certain HR processes. On the legislative side, the California Legislature passed SB 7, which would impose additional obligations on employers who…

Continue Reading Navigating California’s New and Emerging AI Employment Regulations