Navigating AI M&A 2025: Key legal and regulatory insights for business leaders

The article, “AI M&A: Current Trends and Unique Legal and Regulatory Considerations,” provides a comprehensive overview of the evolving landscape of AI-related transactions, offering essential guidance for business leaders and legal professionals.

The analysis highlights how AI M&A activity is booming across sectors such as financial services, semiconductors, and life sciences, with companies seeking to integrate AI capabilities to maintain a competitive edge. However, acquiring AI businesses presents unique challenges that go beyond traditional dealmaking.

The article delves into critical issues such as:

• intellectual property (IP) rights
• the provenance and licensing of training data
• the complexities of ownership over AI-generated outputs
• the growing risks associated with open-source software, trade secrets, and employee use of third-party AI tools. 

Data privacy and security sit at the heart of every AI deal, as AI companies often handle vast amounts of sensitive personal and confidential information. The article outlines the patchwork of global privacy laws, including the GDPR and emerging U.S. state regulations, and emphasizes the importance of robust due diligence to avoid inheriting compliance gaps or regulatory investigations.

Additionally, the article explores the heightened scrutiny from antitrust and national security regulators, particularly in cross-border deals, and the need for careful risk allocation in deal agreements. Practical strategies for risk mitigation—such as tailored representations and warranties, indemnities, and pre-closing remediation—are discussed to help acquirers navigate this complex environment.

This article is essential reading for anyone planning to be involved in AI M&A, providing actionable insights to harness AI’s potential while managing legal and regulatory risks.

This article was first published in GLI - AI, Machine Learning & Big Data 2025.