In this article, “Acquiring an AI business – Not your typical tech transaction”, we examine why acquisitions of companies with AI-enabled solutions require new thinking as they raise unique risks for purchasers that differ from transactions involving traditional technology and software companies. That re-thinking includes legal due diligence and allocations of risk in purchase agreements. Understanding the different drivers of value for AI companies is critical in the context of M&A transactions as these drivers change the nature of the purchaser’s focus.

This article is authored by Michael Fekete, the National Innovation Leader and a partner in the Technology Group at Osler, and Sam Ip, an associate in the Technology Group, along with Shira Dveris, an articling student at the firm.

Legal Year in Review is brought to you by Osler, Hoskin & Harcourt LLP. Osler is a leading, national law firm with a singular focus – your business. We advise clients on an array of domestic and cross-border legal issues, drawing on the expertise of over 450 lawyers to provide the answers you need, when you need them.

Our Legal Year in Review, published December 7, 2021, provides general information only and does not constitute legal or other professional advice. Specific advice should be sought in connection with your circumstances.

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