Firms Must Update M&A Playbooks to Address Generative AI Risks

3 minute read | June.26.2024

In this Bloomberg article, Sarah Schaedler, Zac Padgett, and Daniel Healow provide recommendations for acquirers and sellers to update their M&A playbooks to address AI legal risks in enterprise environments. Generative artificial intelligence has evolved so quickly that many companies haven’t had time to adjust. Buyers now routinely include AI-specific representations in purchase agreements. For sellers, this means preparing for detailed AI-specific diligence, the extent of which may be new to sell-side deal teams. To properly address the new AI workstream in mergers and acquisitions, buyers and sellers must consider appropriate inquiry and risk mitigation measures at each stage of the deal.