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

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.

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  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.

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