US Law Firm Claims UK AI Vendor Forced Contract Renewal Amid Issues

DK Law alleges forced renewal of AI contract after persistent system failures.

In October 2024, California-based personal injury firm DK Law entered into a contract with UK telecoms and software company ConnexAI for telephone and AI transcription services. According to the Register, DK Law alleges the AI system suffered frequent failures, including dropped calls, unanswered calls, misrouted calls, and inaccurate transcriptions especially for Spanish conversations.

DK Law claims ConnexAI failed to provide the legally required written notice for contract renewal. ConnexAI filed a lawsuit in March 2026 in New York seeking payment for services under an alleged automatic renewal that took effect in October 2025.

In response, DK Law filed a breach of contract suit in California in April 2026, disputing the renewal's validity and citing the system’s poor performance. The California court stayed DK Law's case on August 27, 2026, pending the New York court's resolution of ConnexAI's claims.

However, on September 1, 2026, a federal magistrate in New York denied DK Law’s motion to stay the lawsuit, allowing ConnexAI’s case to proceed simultaneously.

ConnexAI’s North America GM Dan Richardson commented: "This claim is one part of a wider dispute which was initiated by Connex One Inc. The allegations now being made are rejected, and we would note that they were raised only after we issued proceedings which are active."

This case highlights emerging challenges with AI vendor contracts, including enforcing renewal terms and managing performance liabilities, especially across different US state jurisdictions and international contracts.