Merger and acquisitions where the target’s value derives from its software or intellectual property commonly have a separate diligence workstream that focuses on open-source compliance, security, or IP. But with the legal and regulatory challenges that come from using generative AI, acquirers should consider a new diligence workstream that focuses on generative AI issues. Acquirers in all industries and sectors also should review their approaches to diligence given the broad potential use cases.
