We are asked frequently, from a variety of perspectives, about artificial intelligence: its impact on the practice of law, its impact on mergers and acquisitions, and its broader impact on business.

The last of those topics is far too broad for a single article. The market is already filled with commentary about how AI is transforming business. Instead, we thought it would be useful to share some observations about the first two questions, particularly as they relate to corporate law and M&A.

AI as a Tool for Corporate Lawyers

When considering AI's impact on the practice of law, we often make a comparison to medicine.

There is no shortage of websites and tools that allow someone to enter symptoms and receive a list of potential diagnoses. Those tools can provide useful information, but most people still ultimately consult a physician. The technology does not replace the experience, judgment, context, and professional responsibility involved in determining what those symptoms actually mean and what should be done about them.

The same general principle applies to legal practice.

AI can help attorneys work more efficiently and, in some circumstances, more accurately. It can assist with routine matters, document review, legal research, identifying potentially relevant forms or precedents, and researching jurisdictional requirements and other legal authorities.

In many respects, these capabilities represent an evolution of tools the legal profession has used for decades. Lawyers have long relied on form files, case research services, legal treatises, and written analyses. AI allows many of these resources to be accessed, organized, and analyzed much more quickly.

What remains essential is knowing what questions to ask, what information matters, what authority applies, and how the law should be applied to the specific circumstances at hand.

A corporate transaction rarely presents a set of facts that fits neatly into a form or search result. Experienced counsel must understand the client's objectives, identify the relevant risks, determine which legal concepts apply, and translate those considerations into practical advice.

AI is an increasingly valuable tool for doing that work. It is not a substitute for legal judgment.

AI Is Already Part of the M&A Process

The role of AI extends well beyond the legal function in an M&A transaction.

AI is increasingly relevant across virtually every aspect of evaluating a business, including:

• Accounting and financial analysis

• Valuation

• Operations

• Human resources and employee benefits

• Intellectual property

• Tax

• Technology and cybersecurity

• Market analysis

For buyers, understanding how a target company uses AI can be part of evaluating its operations, competitive position, efficiency, and future prospects.

For sellers, the same consideration can affect how the business is positioned for a transaction.

AI Readiness Can Affect Business Value

One development that has become increasingly apparent is the importance of a company's AI readiness.

The significance of AI varies considerably by industry, but in many businesses, effective use of technology can contribute to efficiency, productivity, customer service, competitive differentiation, and growth. A company that has thoughtfully incorporated AI into appropriate areas of its business may have advantages over a competitor that has not.

The reverse can also be true. A company that has fallen behind technologically may face additional investment requirements or competitive challenges that a prospective buyer will need to consider.

This makes technology assessment an increasingly relevant component of M&A diligence.

The question is not simply whether a company "uses AI." Buyers and sellers should consider how technology is being used, whether it is appropriate for the business, what infrastructure and expertise support it, and whether the company is positioned to adapt as the technology continues to evolve.

Technology has long been a consideration in determining the strength and value of a business. AI is becoming an increasingly important part of that analysis.

The Broader AI Investment Environment

The impact of AI on M&A also extends beyond individual transactions.

The enormous investment in AI infrastructure is creating significant demand across a wide range of industries. Data centers require construction, real estate, energy, equipment, logistics, chips, networking infrastructure, and numerous other products and services.

As investment continues, these sectors may see opportunities created by the expansion of the AI ecosystem.

There are also legitimate environmental, infrastructure, and community considerations, particularly surrounding data center development and energy consumption. How those competing interests are balanced will continue to influence investment and development decisions.

Keeping Pace With a Changing Environment

The impact of AI on business and transactions is still evolving.

For corporate lawyers, the challenge is to understand where AI can improve the practice while maintaining the professional judgment and client-specific analysis that remain fundamental to legal representation.

For buyers and sellers, the challenge is broader. Technology strategy can increasingly affect operational performance, competitive position, risk, and ultimately the value of a business.

AI is unlikely to be a discrete issue that can simply be addressed once and put aside. It is becoming part of the broader business environment in which companies operate and transactions are evaluated.

For all participants in the M&A and corporate environment, maintaining a competitive edge will require staying informed, asking the right questions, and adapting as the technology develops.

Do you have something to discuss? Contact us today to discuss your particular circumstances.

The foregoing is intended to be marketing material. Information is contained in this article is for general education and knowledge. It is not designed to be and should not be substituted for legal advice. This information is not intended to create an attorney-client relationship.