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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Tuesday, January 9, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will discuss how AI has transformed traditional investment practices and reshaped the way private equity (PE) firms navigate the complex financial landscape. The panelist will explore the competitive advantage AI provides PE firms and the need for firms to consider and manage the risks associated with AI when assessing their own operations and evaluating the risks and value propositions of their current and prospective portfolio companies.

Faculty

Mark Stignani
Partner
Barnes & Thornburg

Leveraging his deep background in and knowledge of artificial intelligence (AI) and machine-learning tools, alongside his decades of corporate, executive and legal experience, Mr. Stignani offers actionable information so that his clients not only know the challenges they are facing, but also can avoid similar problems down the road. Additionally, he practices intellectual property law, and he possesses a unique understanding of the innovation process – considering he has over 36 patent filings himself, in various technologies and across 11 countries.

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Description

As the PE industry continues to grow and become more competitive, more and more PE firms are turning to AI as a means of gaining an advantage over their competitors. PE firms have utilized AI to simplify some traditionally inefficient processes, enhance their due diligence practices, and improve the overall quality of their investment analysis. If implemented effectively, the benefits of AI can be substantial and provide smaller managers and PE sponsors a disruptive edge in what is a highly competitive and consolidating industry.

Although the use of AI in the PE context offers many advantages and efficiencies, there are also risks and legal considerations that PE firms need to be prepared for in implementing this technology. PE firms need to ensure they are protecting their intellectual property rights and trade secrets in connection with their proprietary AI processes. Also, there are currently AI-specific regulations and state privacy laws in place that could be implicated by a PE firm's use of AI. Further, the use of AI has been under increasing scrutiny by the SEC and this trend is expected to continue.

Because of the growing availability of AI technology, it will be important for PE firms to understand how AI is being used both within their organizations and at their portfolio companies. It is imperative that PE firms take action now to implement policies, procedures, and guardrails to allow the firm to take advantage of the benefits of AI without being exposed to undue risk both for current technology and for new tools as they become available.

Listen as Mark Stignani, Partner at Barnes & Thornburg, explores the potential and opportunities for AI in the PE context and provides best practices for mitigating the risks associated with a PE firm's AI implementation.

Outline

  1. Overview: How AI is being used by PE firms
  2. Opportunities and advantages of using AI
  3. Risks and considerations of using AI
    1. Regulatory risks
      1. State AI-specific regulations
      2. Privacy laws
      3. SEC scrutiny
    2. Privacy risks
    3. Disclosure risks
    4. Confidentiality risks
    5. Intellectual property risks
  4. Ensuring quality control and transparency when using AI tools
  5. AI vendor management
  6. Developing AI policies, procedures, and controls
  7. Key takeaways

Benefits

The panelist panel will discuss these and other key issues:

  • What is the potential for AI in PE and how are firms currently using AI?
  • What are the regulatory risks associated with a PE firm's use of AI?
  • What are other risks associated with the use of AI that PE firms should be aware of?
  • How can PE firms harness the potential of AI while also mitigating the risks associated with its use?