The Impact of Artificial Intelligence on Non-compete Agreements

Artificial intelligence (AI), a rapidly grow- ing field, is transforming business operations and reshaping the dynamics of non-compete agree- ments, particularly in the digital economy.1 The increasing trend of employee ownership of AI investments raises questions about the fate of these investments when a manager who has underwritten a non-compete agreement departs from the firm. The firm’s policies on intellectual property (IP) rights and ownership structures could significantly impact the continuity and utilization of AI assets, underscoring the need for businesses to be vigilant and adapt to these evolving circumstances.