AI in Corporate Transactions: Key Considerations in AI-Rich Investment

As the adoption of AI technologies increases globally, we are seeing an increase in the volume of transactions involving AI, whether in the form of the sale of a target that uses AI, or the purchase of, or investment in AI-based technology companies. Large technology providers and global hyperscalers are making news with significant ownership investments into AI development companies. We predict this kind of activity will continue, and likely accelerate.

This guide, developed by our Corporate and Technology teams, provides a practical framework for purchasers approaching investments in AI-rich companies. It outlines the key considerations to navigate the evolving AI landscape, helping you assess potential risks, understand their impact on value, and take pre-emptive steps to mitigate them, including:

Assessing AI use cases to understand the target’s systems, applications, and impact on valuation.
Evaluating technical infrastructure, including post-completion requirements and legacy systems.
Understanding transparency and explainability risks, particularly for opaque AI systems.
Reviewing governance frameworks and compliance with global regulatory standards.
Navigating intellectual property ownership, licensing, and data governance issues.
Aligning transaction documentation with AI-specific risks and ensuring accurate valuation.
Preparing for post-transaction integration of AI systems and data.

Read the full report here

Our leading Corporate and Technology teams are uniquely positioned to support you over the entire life cycle of AI-related transactions.
We assist our clients with the identification of issues relating to emerging technologies and ensure maximisation of transaction value
across all industries and sectors.