AI-Driven Mergers Pose Data Risks

Published on 4.14.25

  The integration of artificial intelligence (AI) assets into mergers and acquisitions has become a complex issue for tech companies and private equity firms. According to experts Jennifer Everett and Dorian Simmons from Alston & Bird, businesses must develop strategies to address the significant legal risks associated with AI, including data privacy and cybersecurity concerns. One major concern is the use of AI-powered bots that can collect sensitive customer data without permission. For instance, Baracuda's detection software has found millions of requests from GenAI bots to web applications between December 2024 and February 2025, including one application receiving 9.7 million scraper bot requests in 30 days. The recent security breach at Oracle, where user login data was stolen, highlights the vulnerability of companies to AI-powered attacks. Analysis suggests that AI tools like ChatGPT are increasingly used in breaches, allowing them to rapidly parse through files and extract valuable data such as personally identifiable information (PII). As a result, companies must prioritize developing strategies to mitigate these risks, including implementing robust data privacy measures and investing in cybersecurity solutions. With the increasing use of AI assets in mergers and acquisitions, it is essential for businesses to stay ahead of the curve and address these concerns proactively to avoid potential legal and reputational damage.

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