Guidelines For Navigating AI Clauses In Contracts: Key Considerations For Modern M&A Deals

Everyone wants simple, clearly written and short contracts. The problem is every clause was forged on the anvil of litigation. Now your contracts must include how to deal with AI, or AI will deal with you as it sees fit, which you may not like.

While changes to contract clauses have been informed on artificial intelligence (AI) for years, many agreements we review at Buckley Law P.C. still lack the basic understanding of the risks. Why? Most clauses specify human actors are involved, non-human contract performers are an afterthought. For example, one transaction needing a fresh look involves merger, asset and debt acquisition (M&A). In the M&A space, companies combining or transferring assets and debts are thinking about business as usual where derivative works are enabled by AI, undermining the asset or making debt collection probabilities lower. This changes the equation as court decisions increasingly show limited liability entities and individuals can