Leading Corporations Adopt New M&A Due Diligence Criteria to
Assess Value, Risks of Data-, AI-Centric Businesses
“Responsible Data & AI Diligence for M&A” Developed by Data & Trust Alliance
New York, NY – October 20, 2022 – Nineteen of the world’s leading businesses today committed to adopt new due diligence criteria to assess the value and risks of acquisition and investment targets with business models built on data and artificial intelligence (AI). “Responsible Data & AI Diligence for M&A,” a new tool from the Data & Trust Alliance, is designed to supplement existing due diligence criteria and processes, which are insufficient to fully assess data- and AI-centric business models.
The companies adopting the tool are members of the Data & Trust Alliance, a not-for-profit consortium of enterprises and institutions that advance responsible data and AI practices. They recognize that businesses across industries are transforming into data enterprises
—using data and algorithms to create economic and societal value. Many are doing so through joint ventures, acquisitions and mergers with a rapidly growing array of companies that have data- and AI-based capabilities and business models. In 2021 alone, $93.5 billion was invested in AI startups, while AI mergers and acquisitions reached a record 311, up 96% since 2020, according to Statista and CB Insights.
"Data & Trust Alliance is committed to providing tools for business practitioners to learn, develop and adopt responsible data and AI practices. These newly launched criteria help ensure that organizations truly understand what they are acquiring, including corporate culture, how data is sourced, used and governed, and the design and performance of algorithmic models to minimize unintended consequences," said Ken Chenault, Data & Trust Alliance co-chair, General Catalyst chairman and managing director, and former American Express chairman and CEO. "Responsible Data & AI Diligence for M&A is an important framework for both acquirers and data and AI centric businesses—innovators that have the potential to transform industries and impact society, for better or for worse."
“We tapped deep technical, legal and business expertise to create this tool, with particular focus on culture – arguably the most predictive indicator of future value and success” said Craig Glidden, EVP of global public policy, general counsel and corporate secretary of General Motors, and chair of the Responsible Data & AI Diligence for M&A initiative. “This work will help data and AI deals be done right—and help the right deals be done. At GM we believe these tools can increase confidence and reduce friction in acquisition activity.”