Generative AI has quickly become part of the software development workflow. Tools like GitHub Copilot, OpenAI’s ChatGPT, and Anthropic’s Claude can speed up coding, automate documentation, and even suggest architectural solutions. For developers working inside outsourcing companies, however, the use of these tools raises a critical legal and contractual question: What happens to IP created with AI assistance when the ultimate client expects full and unencumbered ownership.

As artificial intelligence becomes increasingly embedded in industries like healthcare, finance, transportation, and law enforcement, a critical question arises: who is responsible when AI systems cause harm? From self-driving vehicles causing accidents to biased facial recognition tools misidentifying individuals, AI-related incidents are no longer theoretical — they are real and growing.