From productivity tool to core technology: managing AI risk in M&A
As artificial intelligence becomes embedded in more businesses, its role in M&A transactions is becoming increasingly significant. In the article “From Productivity Tool to Core Technology: Managing AI Risk in M&A”, our Raj Mannar, Hong Kah Chon, and Samuel Tay argue that the key question is not simply whether a target company uses AI, but how central AI is to its assets, operations, and value proposition.
They consider the various ways in which AI is used in businesses, and discuss the necessary approaches and safeguards to address such usage. The following areas are explored:
- Employee use of AI and hidden compliance risks.
- Ownership and protectability of AI-assisted IP.
- Third-party dependencies within proprietary AI systems.
- Whether AI products actually perform as claimed.
The more material AI is to the business, the more traditional due diligence and contractual protections may need to be enhanced with AI-specific enquiries, technical assessments, and transaction safeguards. For buyers and sellers alike, understanding the difference between ordinary AI use and AI as a core business asset has never been more important.
The full article, “From Productivity Tool to Core Technology: Managing AI Risk in M&A”, is published by Asian Legal Business.
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For further enquiries, please contact:
Raj Mannar at raj.mannar@helmsmanlaw.com
Hong Kah Chon at kahchon.hong@helmsmanlaw.com
Samuel Tay at samuel.tay@helmsmanlaw.com
For media enquiries:
Marisa Tse at marisa.tse@helmsmanlaw.com
This publication is provided for general information purposes only and does not constitute legal or professional advice. It does not purport to be comprehensive or address every aspect of the matters discussed. While we strive to ensure the accuracy of the information at the time of publication, we make no representations or warranties as to its accuracy, completeness, or suitability for any particular purpose. You should seek specific legal or professional advice before taking any action based on the contents of this publication. We do not accept any liability for any loss or damage arising from any reliance placed on this publication or its contents. No lawyer-client relationship is created by this publication.
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