Unlocking The Code To A Successful Acquisition Of AI Technology

As artificial intelligence ("AI") continues to grow and pervade our consciousness, more technology, health care, financial services, and manufacturing businesses are deciding whether a capital investment in or acquisition of AI technology owned by another business is the best path forward. Below are certain legal considerations in contemplating an acquisition of certain AI owned by another company via a stock or an asset purchase.

Conduct AI-Specific Due Diligence

While the concept of AI has been prevalent for decades, M&A attorneys may not be familiar with the underlying components or terminology that creates the AI. A thorough understanding of these aspects is imperative, and the buyer's deal counsel should include subject matter experts to conduct due diligence in order to identify and understand the AI components. This process will also assist the buyer in determining the seller's most valuable assets and allow for the buyer's counsel to appropriately define