Trends With: Karolina Kjellberg

Innovation continues to be the driving force in tech law, especially in Sweden’s vibrant startup scene, where both entrepreneurs and investors remain keen on new technologies. AI is a major focus, not only in Sweden but across the EU, with regulations like the EU AI Act and the Digital Services Act setting the stage for greater transparency and accountability in tech.

Data privacy is still a central concern, but cybersecurity is increasingly taking centre stage with the NIS2 Directive and, of course, sector-specific regulations like DORA for financial institutions, both pushing for stricter requirements.

As an example, we advised a prominent Swedish industrial company on an agreement concerning an IT solution that utilizes AI for real-time analytics, integral to the client’s strategic investment in IT security.

Meanwhile, sustainability is more than a buzzword—it’s becoming central to tech strategies, with ESG principles driving both regulatory and market shifts. Companies are now turning to tech to help build a greener, more responsible future, which is inspiring new waves of innovation.

Interestingly, the UK, even in its post-Brexit independence, is following suit and aligning with similar regulations and strategies.

One of the biggest challenges that our clients are currently facing is navigating the ever-expanding, complex web of regulations. The tech landscape moves quickly, but the legal frameworks around AI, data privacy, and cybersecurity are becoming increasingly intricate, particularly with new rules coming from the EU. It’s not just about staying compliant; it’s about understanding the details of multiple regulations while still finding ways to innovate within those boundaries. Rather similar to trying to solve a puzzle that keeps changing shape.

For my colleagues and I, this complexity is actually quite exciting—we’re working closely with businesses to help them find that balance between creativity and compliance, and in many cases, turning these challenges into opportunities. For instance, we recently advised a tech company looking to enhance its medical advice through AI. This sparked engaging discussions around AI, data privacy, and cybersecurity, challenging us to navigate the regulatory landscape while enabling innovative solutions.

Despite the challenges, there are plenty of opportunities, particularly for companies willing to embrace (and invest in) responsible innovation. The EU AI Act, while demanding, offers a roadmap for businesses to develop AI technologies that not only comply with the law but also position them as front players in ethical AI.

There’s also significant potential for companies that embed sustainability and ESG principles into their operations, especially in green tech. The businesses that can demonstrate real commitment to sustainability are likely to stand out in an increasingly competitive market. Cybersecurity is another area with great potential, with stricter regulations driving demand for advanced solutions.

Personally, I’m also excited about the rise of legal tech, where we as lawyers can adopt new tools to provide more efficient services to our clients, while staying at the forefront of innovation ourselves.