EU AI Act Turns Inherited AI Systems into Major Liability Risks During Corporate Acquisitions
The EU AI Act creates significant new compliance and liability challenges for buyers in M&A transactions by regulating the use of AI systems rather than their development. Many common business tools in HR, biometrics, and production control now fall under high-risk categories, requiring careful due diligence that is often overlooked. The regulation applies staggered deadlines, with general-purpose AI model obligations effective from August 2026 and high-risk system rules phasing in through 2028. Penalties can reach 35 million euros or 7 percent of global annual turnover for prohibited practices. The article highlights the need for updated purchase agreements that address AI risk classification, documentation, registration, and post-closing modifications that may trigger new obligations. Cross-border deals face additional complexity due to differing national enforcement structures between Germany and Italy.
Security-InsiderNov 9, 2026Translated from German