Evaluating AI M&A Opportunities: Due Diligence Efforts and Regulatory Compliance Considerations

This CLE webinar will examine the due diligence and regulatory challenges of M&As involving AI targets or targets that rely heavily on AI. Our faculty will highlight intellectual property, data privacy, regulatory, and valuation risks that must be addressed during a deal's due diligence to help buyers and sellers achieve better deal outcomes.

AI M&A is booming, driven by companies looking to acquire technology, talent, and data. This is especially true in the life sciences, financial services, and technology sectors. But acquiring AI businesses or businesses whose value rests on AI-generated work or data poses unique M&A challenges. This includes AI startups, conventional businesses relying on AI platforms, and companies with attractive competitive advantages stemming from proprietary data or models.

Deal challenges focus on a few key areas, including attributing and valuing AI-based assets; IP and data protection; model provenance (the AI asset's chain of custody, including origin, development, and training); and assessing and assuring commercial-level model performance. Evolving antitrust and national security policies add complexity to deals, and a target asset's compliance protocols should also be evaluated during the diligence phase.

Our faculty will spotlight these very practical and important deal risks and share due diligence strategies that foster healthier AI M&A transactions. Time will also be spent discussing how buyers' and sellers' counsel can structure due diligence practices to help price assets more accurately using tighter valuation frameworks and validation methods. Additional diligence discussion will focus on analyzing ownership of or access rights to proprietary datasets and whether compute costs are commercially sustainable. Our faculty will walk attendees through diligence solutions to address these concerns and more. Finally, our faculty will address when and how to weave third-party due diligence experts into diligence efforts.

Listen as our authoritative panel of experts identifies and addresses the unique due diligence measures required in AI M&A transactions, as well as the regulatory compliance considerations sellers and buyers need to address before moving forward with a deal.