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Overview
Since the launch of ChatGPT in November 2022, the deployment of artificial intelligence (AI) in the economy has surged. Bloomberg Intelligence recently reported that the generative AI market is poised to grow at a 42% compound annual growth rate from $40 billion in 2022 to $1.3 trillion over the next ten years.
Among the major drivers:
- AI infrastructure as a service ($247 billion by 2032) used for training LLMs
- Digital ads driven by the technology ($192 billion)
- Specialized generative AI assistant software ($89 billion)
Providing AI services is very hardware intensive and Bloomberg estimates the following hardware demand:
- AI servers ($132 billion)
- AI storage ($93 billion)
- Computer vision AI products ($61 billion)
- Conversational AI devices ($108 billion).”
The impact of the AI surge goes beyond the providers of AI Chatbots and related tools, extending to a far larger group of companies that incorporate AI into their workflows. The deployment of AI has raised many novel legal questions, including its impact on the ownership of intellectual property created in whole or in part by AI, infringement concerns, data privacy and data security concerns and more.
This Briefing will identify the major risks posed by AI deployment in the enterprise, address how investors and acquiring companies can identify these risks and propose contractual provisions in M&A and investment documents to address them.
The following topics will be explored:
- Introduction to AI and its enterprises uses (10 minutes)
- Potential Risk Sources in M&A/Investment Transactions (20 minutes)
- IP Ownership
- IP Infringement
- Data Privacy and HIPAA
- Data Security
- Hallucinations and reliance on AI generated data
- How to diligence AI-related concerns in M&A and investment transactions (15 minutes)
- Identifying the scope of AI use
- Reviewing AI policies
- Identifying potential liabilities
- Contractual protections – how to allocate/mitigate AI-related risks in M&A and investment transactions through contractual provisions (15 minutes)
Who Should Attend: In-house counsel, outside attorneys, compliance and other allied professionals participating in M&A transactions
Program Level: Overview
Prerequisites: None
Advanced Preparation: None
Faculty:
Dror Futter
Rimon, P.C.
Peter F. McLaughlin
Rimon, P.C.