AI in Due Diligence: Efficiency Gain or Confidentiality Risk?
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To what extent does the use of third-party AI tools in a due diligence process increase the risk of breaching confidentiality obligations under an NDA, particularly where sensitive information uploaded to the AI platform is processed by a third-party service provider that is not itself bound by the transaction NDA?.
Should transaction NDAs expressly regulate the use of AI tools by the buyer and its advisers, and under what conditions should such use be permitted?
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