AI is changing which takeover deals get done – The Logic AI is changing which takeover deals get done – The Logic

Companies are increasingly pursuing mergers and acquisitions to acquire more artificial intelligence tools. This approach to strengthening their tech resources is changing the deal-making process as lawyers and executives look to protect companies from risky AI agreements. While it is often more cost effective for a company to purchase an AI business rather than build one themselves, firms hoping to sell their business must anticipate scrutiny of their AI systems before the deal is done.

A recent Osler Update, “AI transactions: why traditional approaches fall short and how to adapt,” explores how artificial intelligence has shifted from a consideration to a central focus in the due diligence process of technology transactions.

Osler’s Sam Ip, a partner in the Technology Group, tells The Logic that the due diligence process — when the buyer does a detailed inspection of a potential target — now turns to data licensing much earlier in the process. Both buyers and sellers are increasingly turning to third-party due diligence companies that specialize in kicking the tires on AI.

“I’ve been talking to clients about it. I’ve been talking to the firm about it,” said Sam. “How do you prepare yourself for sale? What are the warts?”

If you have a subscription, you can read the full article by Anita Balakrishnan, “AI is changing which takeover deals get done,” on The Logic website.