AI Washing: What Investors Need To Know Before Buying In
How Strategic Review of AI Investments Protect Value, Drive Growth, and Mitigate Risks
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2025年9月24日
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Acquiring or investing in AI technologies is a key strategic lever for corporates and for funds looking to expand their portfolio. However, investing in such assets requires careful diligence to evaluate true commercial, technical, and operational performance of the AI systems and the business and operating model built around it. In a rapidly evolving market, “AI washing” has become increasingly common, where the value of the AI intellectual property, data assets, or technical expertise involved may be overstated. These claims often fail to hold up under close examination, creating risks for investors and financial sponsors.
To protect their investments and mitigate risk, it’s critical for companies to conduct a comprehensive, end-to-end review of the target’s AI ecosystem. This includes benchmarking their system’s technical performance against state-of-the-art AI technologies, running in-depth demos to confirm functional performance, interviewing leadership, reviewing compliance and regulatory requirements, and analyzing the full depth and breadth of the technical infrastructure involved, from AI agents and orchestration systems to third party APIs, foundational AI models, and the underlying datasets involved during training and inferencing. In a recent case, our review provided clarity to the financial sponsors on the nature of the proprietary AI intellectual property (“IP”) in the deal, its commercial performance projections, technical entanglements, dependencies on third party systems, use of open source systems and the data ownership perimeter, which allowed them get a better financial outcome and led to a successful transaction for all parties involved.
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2025年9月24日
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Senior Managing Director, Leader of AI & Digital Transformation