Use this button to switch between dark and light mode.

Artificial Intelligence (AI) Investment: Risks, Due Diligence, and Mitigation Strategies

August 29, 2023 (1 min read)

The investment landscape surrounding AI is experiencing remarkable growth with the increasing prevalence of this transformative technology. Given the dynamic, revolutionary nature of AI, AI-related investments present unique cost-benefit and risk considerations. Acquirers must be prepared to address AI-related issues and evaluate companies that own, provide, or use AI technologies. This practice note explores the AI investment landscape and discusses key considerations in mergers and acquisitions involving AI assets, including the importance of due diligence, benefits and risks associated with AI investments, the role of data in AI systems, the legal and regulatory framework surrounding AI, and the role and impact the purchase agreement has with respect to transactions in this field.

Read now »

Related Content

  • Generative Artificial Intelligence (AI) Resource Kit
    Gain a better understanding of AI and generative AI with a collection of resources including guidance and news on IP issues related to AI such as IP protection of AI technology, ownership of IP created with the use of AI, considerations for AI transactions, and the potential for infringement claims arising out of the use of AI.  Set an alert on this document to keep up with new developments.

Practical Guidance Updates  
Featuring the latest updates from your Practical Guidance account      

  • Read the new edition of the Practical Guidance Journal for insights on Generative AI cautions and benefits, new trends in private lending, environmental law considerations, and market intelligence analysis.
  • Listen Up! The Practical Guidance and Law360 Podcasts Resource Kit features interviews with industry-leading attorneys on cutting-edge issues in the law: NFTs, Cannabis, COVID-19, and more.
  • Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page for the latest topics, including breaking legal news and related Practical Guidance content. 
  • Check out our Practical Guidance Author Center! Learn about the 1750+ leading attorney authors contributing to our 24 practice areas, and find out how you can Become a Practical Guidance Author. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.


Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+