A Practice Note highlighting issues to consider when counseling a prospective buyer of an AI company. This Note discusses the primary due diligence issues relating to AI and machine learning (ML) and strategies to mitigate or allocate risks in the context of an M&A transaction. This Note is also helpful for AI company targets that seek to anticipate potential issues. In this Note, the term AI company refers to a company involved in the research, development, or monetization of a product or service that is primarily powered by an ML algorithm or model that creates functionality or utility through the use of AI.

Read the full article on Practical Law, written in collaboration with by Annette Becker, Alex V. Imas, Jake Bernstein, Mark H. Wittow, Melanie Bruneau, Marion Baumann, Kenneth S. Knox, Julie F. Rizzo, Cameron Abbott, Thomas Nietsch, and Nicole H. Buckley.