DealLawyers.com Blog

Artificial Intelligence is becoming an increasingly important tool for many businesses. But like any emerging technology, the use of AI in a target’s business raises a bunch of issues that buyers need to address during the due diligence process.  This Norton Rose Fulbright blog provides an overview of the data, cybersecurity & privacy, and intellectual property issues associated with AI that buyers should keep in mind.  This excerpt addresses the risks associated with the input data used to train an AI system:

The risks associated with the input data used to train the AI system are a key consideration when conducting due diligence on AI. These risks often vary based on the nature and sensitivity of the data, and raise the following issues, among others. To assist with understanding the AI and gain comfort on the aforementioned risks, a few considerations are as follows:

– Accessibility: Acquirers should confirm that the target obtained their data legally to ensure there will be no issues using the data after acquisition. Problematic data may jeopardize the AI model’s ability to generate predictive solutions, and prevent the AI system from operating as intended.

– Bias: Input data may contain racial, gender, disability and other biases, which could result in an AI system that is susceptible to errors (which, in some instances, could raise ethical concerns). To reduce the risk of acquiring problematic data, buyers should ensure that the target has systems in place to identify and eliminate biases in the AI system, and that the target prioritizes data ethics.

– John Jenkins