AI and M&A

The use of AI in various sectors is transforming the landscape of M&A. In addition, the AI Act underscores the need for specialized legal expertise in AI-driven transactions. At CMS, we are experienced in M&A transactions involving companies working with AI such as AI-providers, deployers, importers and distributors of AI systems, with a track record of successful AI-related transactions.

We identify and assess the role of AI in a target-business, are able to assess risks and advise our clients to ensure compliance with applicable legislation. Our team is skilled at managing the unique aspects of AI in M&A, offering a tailored approach at each stage of the transaction and incorporating AI-specific risks into the transaction documentation.

M&A services in respect of companies involved with AI:

• Due Diligence. Conduct due diligence investigations into the target company’s AI technologies, including evaluating intellectual property rights, data privacy practices, and compliance with AI regulations, to identify risks related to the target company’s AI systems.
• Transaction documents. Draft and negotiate transaction documents, including provisions related to AI technology transfers, warranties with respect to the company’s AI, and indemnities for known AI-related liabilities. Tailor transaction documents to address key findings from the due diligence investigation. Include closing deliverables and post-closing actions required in connection with the successful integration of an AI-related company. 
• Post-transaction services. Assist in the planning and execution of integrating the target company within the group structure of the acquiring company, including the alignment of corporate governance systems. Execute post-closing actions as flagged during the due diligence investigation.

These services help ensure a smooth M&A process and post-transaction integration of the target company, when AI technology is involved.