6thWave: AI News Hub

The rapid evolution of generative artificial intelligence (AI) has left many companies scrambling to adjust, particularly in the realm of mergers and acquisitions (M&A). Both acquirers and sellers must now update their M&A playbooks to adequately address legal risks associated with AI in enterprise environments. Buyers increasingly include AI-specific representations in purchase agreements, necessitating sellers to prepare for thorough AI-specific due diligence. Sellers should maintain an up-to-date inventory of AI activities and terms, and implement responsible use policies and governance structures to manage AI risks effectively. Buyers are enhancing traditional intellectual property representations to include considerations like training data, compliance with laws, and confidentiality terms regarding AI. Post-closing, buyers should integrate the acquired business into their broader AI management framework and regularly update their AI risk profiles. Revising customer and supplier terms to reflect new AI uses is also crucial. In summary, AI-related issues permeate the entire M&A lifecycle, and early, detailed attention to these matters can prevent delays and ensure smoother transactions.

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