When Technology Fails: Disputes in the Digital Age
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June 02, 2025
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When Technology Becomes a Source of Disputes
Technology was created to optimize processes, improve efficiency, and simplify tasks in all areas of our lives. Legal processes are no exception. Technology has revolutionized the way contracts are concluded, disputes are resolved, digital evidence is managed, repetitive administrative tasks are automated, and legal research is conducted using artificial intelligence.
However, what happens when technology, instead of being an ally, becomes the cause of the termination of multimillion-dollar contracts, disagreements or even disputes? Is it a problem of the technology itself or the inability to implement it effectively?
While innovation continues to drive industries, processes, and businesses, not all technology solutions are equally effective or appropriate. It is a mistake to assume that standardized technology can meet the needs of all companies, institutions, or individuals. The reality is, that every organization has unique requirements that require customized and tailored solutions.
Why Do So Many Technological Implementations Fail?
Technology companies design solutions to be logical, standardized, and easy to use, making them easier for institutions and their employees to use. However, that doesn’t mean it’s right for all users. If technology is meant to improve efficiency, why do so many implementations result in failures and disputes?
In our experience, there are at least 6 reasons that contribute to these failures:
- Need for tailor-made solutions: Although technology can solve, optimize and automate most processes, there are needs that require specific developments, even customized and new solutions.
- Lack of proper integration: New systems must be aligned with each company or institution’s existing workflows and infrastructures. Otherwise, the system is most likely destined to fail.
- Implementation errors: Poor implementation can be caused by multiple factors, such as improper planning, underestimation of time and resources needed, or rushed execution. This can result in technical errors, compatibility issues, or disruptions to existing processes. A successful implementation requires a clear strategy, rigorous testing and constant support during the first phases of use.
- Inadequate communication: Clear communication between stakeholders (developers, vendors, and users) is essential to ensure smooth implementation and avoid misunderstandings, as well as to reach agreements in case of delays.
- Gaps in training and adaptation: Even the most sophisticated technology can fail if users are not properly trained to manage it effectively. Technology must be acceptable and understandable in order to be used effectively.
- Over-promised capabilities: Some technology vendors over-exaggerate their solutions, leading to disappointment when the system doesn’t work as expected.
A clear example is the case of Hertz vs. Accenture, where the car rental company sued the consulting firm for 32 million dollars after the failed implementation of its new digital platform.1 Accenture promised a functional system, but Hertz claimed that the delivery was riddled with errors, with incomplete modules and no compatibility with mobile devices.2
Another relevant case is the software of the Boeing 737 MAX, where a faulty automated system contributed to fatal accidents. Although the technology itself was not the problem, its implementation without proper training for pilots and the lack of clear communication about their roles led to tragedies and legal disputes.3
These cases reflect a reality: The problem is rarely the technology itself, but the gap between its design and its real-world application.
A solution may look innovative and solve all needs on paper, but if it doesn’t integrate well with existing systems, if it doesn’t align with operational needs, or if human and structural complexities aren’t taken into account, failure is inevitable.
Lack of alignment, poor communication, and unrealistic expectations can turn what should be a technological advantage into a hotbed of conflict, costly disputes, and lawsuits.
When the Dispute Arises…
No organization wants a technology implementation to cause problems, much less lead to disputes, but conflicts are sometimes inevitable. The key is to be well prepared and proactive to minimize risks. When disputes arise, the focus should not be limited to the legal analysis of the contract, but should extend to understanding the root causes of the breach. What went wrong with the implementation of the system? Was it really adapted to the current needs of the company or institution? Were pre-existing structural weaknesses adequately taken into account and addressed to ensure effective integration? Did the parties meet their responsibilities and obligations? Were technical errors made that made the technology useless?
At FTI Consulting, specifically in our Technology Disputes and Advisory Services (“TDAS”) practice, we have observed a notable increase in disputes related to technology implementations.4 This increase is in line with global trends that indicate a growth in conflicts stemming from the adoption of new technologies. For example, the adoption of artificial intelligence (“AI”) has grown significantly in recent years, reaching 72% of companies in 2024, up from 55% in 2023.5 However, this rapid growth has led to legal and regulatory challenges, with cases of data breaches, biased automated decisions, and litigation related to intellectual property.6
Likewise, failed implementations of ERP systems have resulted in million-dollar lawsuits, with 55% of projects experiencing issues that affect their functionality and financial viability. 7 Among the main conflict factors are inadequate management of organizational change, lack of alignment in contractual expectations, and failures in integration with legacy systems. As companies continue to adopt advanced technologies without strategic planning and robust regulatory frameworks, we anticipate that these conflicts will continue to escalate, driving demand for forensic audits, risk assessment, and technology dispute resolution.
In a world where technology is increasingly indispensable, its success depends not only on its sophistication, but on how well it is understood, implemented and adapted. The key to avoiding disputes is not only in better contracts, but in better preparation, the use of industry best practices, transparency in the face of potential complications, cooperation, work between parties, strategic alignment, and realistic expectations.
If we want technology to be a true ally, we need to make sure that those who adopt it really understand how it works, what they can expect from it, and how to integrate it without it becoming another problem. And if disputes arise, success lies in the synergy between strong legal representation and expert witnesses who not only understand the technology, but also have real-world experience in implementing technology and specifically navigating complex disputes, whether in national courts or in arbitration processes.
Additional Authors:
María Camila Ospina, Associate Director
Juliana Paez, Consultant
Footnotes:
1: John Belden, “4 Lessons from the Hertz vs. Accenture IT Disaster,” CIO (February 5, 2020).
2: Henrico Dolfing, “Case Study 8: How Hertz Paid Accenture $32 Million for a Website That Never Went Live,” Henrico Dolfing (October 2019).
3: Mike Spector, Allison Lampert, and David Shepardson, “US Judge Rejects Boeing Plea Deal in Fatal 737 MAX Crashes,” Reuters (December 5, 2024).
4: Precedence Research, “Software Consulting Market,” Precedence Research (Accessed May 19, 2025).
5: CNN Brasil, “Uso de Inteligência Artificial Aumenta e Alcança 72% das Empresas, Diz Pesquisa,” CNN Brasil (Accessed May 19, 2025).
6: El País, “Sentencias Falsas, Leyes Extranjeras y Filtrado de Datos: Los Riesgos de Usar ChatGPT se Cuelan en los Despachos de Abogados,” El País (February 18, 2025).
7: Grandes Pymes, “Implementaciones Fallidas de ERP: 9 Casos de Fracasos y Decepciones,” Grandes Pymes (June 26, 2018).
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June 02, 2025
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