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Course Details

This CLE webinar will explore the key areas of inquiry when conducting due diligence on a target company's use of artificial intelligence (AI) in its operations. The panel will highlight the unique challenges inherent to AI and provide guidance for uncovering and assessing risks during the due diligence phase of a deal.

Faculty

Description

As AI becomes a business necessity across industries, companies are leveraging mergers and acquisitions to enhance their AI capabilities and stay competitive in the rapidly evolving technological landscape. Acquiring a target that either develops or incorporates AI technologies in their business operations presents unique legal challenges and risks.

Comprehensive due diligence is imperative in AI deals to accurately assess the value and potential risks associated with an AI target. While some due diligence factors are the same as those in general technology transactions, there are specific AI-related concerns that must be assessed such as data governance, cybersecurity, intellectual property rights and ownership, infrastructure requirements, and compliance with the rapidly changing legal and regulatory environment. 

When identifying AI-related issues during due diligence, buyers' counsel should assess the feasibility of mitigating the risks and determine how they can be addressed with purchase price adjustments or tailored deal terms in transaction agreements.

Listen as our authoritative panel examines the unique legal due diligence issues arising out of a target's use of AI technologies and provides strategies for uncovering, assessing, and mitigating AI-related deal risks.


Outline

I. Overview: M&A market activity in the AI sector

II. Key issues relating to AI-related deals

III. Due diligence strategies to assess and uncover AI-related risks

IV. Addressing and mitigating risks discovered during due diligence

V. Practitioner pointers and key takeaways

Benefits

The panel will address these and other key considerations:

  • What are the unique issues that arise with AI-related transactions and how do these deals differ from general technology deals?
  • What are the key legal due diligence considerations that arise out of a target's development or utilization of AI technology?
  • What due diligence strategies should counsel employ to assess and uncover AI-related deal risks?
  • How should issues discovered during due diligence inform the terms of the transaction documents?