The Shift from Competitive Advantage to Governance Imperative
The Shift from Competitive Advantage to Governance Imperative
Publish Date: 2026-03-31 16:08:00
Source Domain: www.morganlewis.com
- AI is increasingly central to M&A strategy and value creation, serving as a key differentiator and driver of deal value.
- Regulatory pressure is growing globally, urging organizations to adopt robust governance, documentation, and compliance practices for AI deployment.
- Transparency regarding AI usage has become mandatory, with organizations expected to clearly explain how AI functions within their operations and agreements.
- New legal risks have emerged, focusing on issues like IP ownership, data privacy, potential bias, system reliability, and liability allocation.
- Diligent evaluation of AI systems is now standard practice, encompassing scrutiny of training data, governance, regulatory exposure, and risk controls.
- Human oversight remains critical, with experts needed to validate, contextualize, and test AI outputs.
- AI is transforming deal execution processes, enhancing efficiency from sourcing to integration with improved speed, scalability, and deeper analytical insights.
- AI applications are delivering tangible efficiency gains, notably in contract analysis, by drastically reducing time and providing additional data-driven insights.
