Navigating The Legal Minefield: AI-Driven Due Diligence In Mergers And Acquisitions In India
- IJLLR Journal
- Apr 9
- 2 min read
Ayush Tiwari, Advocate, High Court of Chhattisgarh
ABSTRACT
Mergers and Acquisitions (hereinafter referred to as “M&A”) have always been an integral part of corporate strategy. Ever since the genesis of the first corporate merger in 1708, when the East India Company agreed to enter into a strategic partnership with an English company to hold on to its trading monopoly, M&As have witnessed huge transformations and have enabled innovation and efficiency and contributed to the creation of multiple avenues for economic growth.
With changing times, the perspectives and motivations behind an M&A have also changed and the onset of globalization brought along with its numerous technological advancements which have greatly impacted myriad sectors, including the deal-making landscape. With the growth of Artificial Intelligence (hereinafter referred to as “AI”), businesses have begun to deploy tools that enable them to identify the avenues or players that would cater to their profitability in the long run. In the process of doing so, businesses also have to swim through an ocean of regulatory complexities and ensure that there are no legal impediments that obstruct their aspirations for effectively utilizing the opportunities in the deal-making landscape.
Through this paper, the author diligently attempts to shed light on the benefits that AI tools may offer in the due diligence process of an M&A, while also bringing attention to the privacy risks that they pose. The author also analyzes the existing legal framework surrounding the deal-making landscape and how it can be strengthened further to cater to the emerging market dynamics in India. The paper concludes with several recommendations including promoting interoperability across AI platforms, broadening the accessibility of computational resources, instituting stringent data-governance protocols to uphold regulatory adherence while permitting controlled utilization of vetted open datasets, and cultivating joint public- private ventures to sustain emerging AI firms.
Keywords: M&A, AI, due diligence, deal-making, data privacy, regulatory compliance
