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ARTICLE · 25 MAY 2026

AI: The Next Frontier Of PE Deal Risk

Mayer Brown
Mayer Brown
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Private equity transactions increasingly require sophisticated AI diligence as companies struggle to document how artificial intelligence tools are deployed across their operations.

United StatesTechnology
Richard M. Assmus
Richard M. Assmus
Jonathan A. Dhanawade
Jonathan A. Dhanawade
Julian M. Dibbell
Julian M. Dibbell
Frank J. Favia Jr.
Frank J. Favia Jr.
Veronica Glick
Veronica Glick
Lei Shen
Lei Shen
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Cybersecurity diligence was once treated as a specialized issue in private equity transactions; today, it’s part of the standard deal process. Sponsors evaluate security controls, incident history, insurance coverage, vendor exposure, and data practices as a matter of course because operational failures in any of those areas can materially impact enterprise value.

Artificial intelligence (AI) is quickly emerging as a distinct and compounding layer of deal risk. The issue is no longer whether companies are using AI tools; most are. The real questions are whether management teams understand how those tools are being used inside the business, what data is being used and potentially exposed, whether outputs are reliable and auditable, and whether any meaningful governance exists around deployment.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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