With the rapid development of highly complex disruptive technologies, innovative tools such as Artificial Intelligence (AI) and the blockchain protocol are increasingly gaining ground in the legal market, with an emphasis on the M&A sector.
In addition to optimizing operational efficiency, analysing data, automating processes and guaranteeing the integrity of transactions and/or their respective data, the adoption of innovative technologies has the potential to strengthen digital security in the legal market. However, the implementation of such tools faces challenges related to regulation, output reliability and receptivity by market players.
In the context of the mergers and acquisitions sector, the use of trained AIs can revolutionize the business and operations of any company. As the technology, fed by historical data from hundreds of previous transactions, becomes capable of analyzing data and/or information about companies, their respective industries, synergies between businesses and other related information in order to provide relevant insights into possible transactions, major players can use such analysis to make strategic acquisitions in order to remain relevant in their respective markets – including by integrating new technologies into their operations or retaining specialized talent in their respective fields.
Blockchain, on the other hand, can revolutionize the way M&A operations are carried out. As it is a technology for recording and storing information in a decentralized way, it guarantees a reduction in the costs associated with the operation, as well as mitigating the risk of fraud and loss of documents and/or information, in addition to guaranteeing the confidentiality of information in a practical and widely applicable way.
On the other hand, there are legal challenges related to the adoption of regulations for both disruptive technologies and compliance in M&A transactions.
It is true that disruptive technologies often operate and thrive in areas with little or no legislation – and, in fact, it is precisely the absence of state intervention that tends to enable rapid technological development.
However, regulation is vital to reduce risks and uncertainties of a legal nature, especially with regard to succession and indemnity obligations for corporate liabilities, which are widely discussed in mergers and acquisitions. The existence of specific legislation, regulatory bodies, commissions and the like aims to ensure that technological development takes place in a responsible and ethical manner, so as to guarantee legal certainty for the parties involved and for society.
Nevertheless, intelligent contract management systems and other tools are becoming increasingly popular in the legal world. This software enables companies to keep detailed track of contractual rights and duties, compliance with internal policies and applicable legislation and obligations arising from M&A transactions, among others. The use of these intelligent systems can help mitigate the risks inherent in business activity.
Still along these lines, we would like to point out that, when it comes to adapting to new regulations and compliance, it is always advisable to hire a legal consultancy specializing in M&A.
Specialized firms have teams made up of experienced lawyers who are able to provide relevant legal guidance and point out risks and legal implications in the event of non-compliance.
