TechnologyJuly 15, 2026
counterparty
/ˈkaʊntərpɑːrti/
Definition
A party with whom one has entered into a legal, financial, or operational contract or agreement.
Etymology
Derived from the prefix 'counter-' (against or opposite) and the noun 'party' (a person or group involved in an action). It entered English in the late 17th century to denote a person or entity on the opposite side of a legal transaction.
In the news
The article uses the term to describe external partners in a supply chain or service network that could be negatively affected by technical errors in an organization's AI deployment. It highlights the need to manage systemic risks through contractual protections when interconnected firms rely on the same technology.
Only 11% of S&P 500 firms have deeply integrated AI, MIT study finds
Read the full article ↗MarketScale