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11 Int'l. In-House Counsel J. 1 (2017-2018)
Artificial Intelligence (AI) Transactions: Thoughts and a Few Tips

handle is hein.journals/iihcj11 and id is 494 raw text is: International In-house Counsel Journal Vol.11, No. 44, Summer 2018, 1 Artificial Intelligence (AI) Transactions: Thoughts and a Few Tips CHRISTINE E. REDDY Vice President and Deputy General Counsel, Fannie Mae, USA & TANGUY DE CARBONNIERES Deputy General Counsel, Fannie Mae, USA Success in creating effective AI, could be the biggest event in the history of our civilization. Or the worst. We just don't know. So we cannot know ifwe will be infinitely helped by Al, or ignored by it and side-lined, or conceivably destroyed by it. Stephen Hawking 1. Introduction Predictive algorithms and computers independently generating output are not new. Some of us remember Deep Blue beating Gary Kasparov. Well, that was in 1997, and there are many antecedents to smart computing, however crude by today's standards. After many years of anticipation, or trepidation for those spooked by 2001: A Space Odyssey, the AI train has left the station - doubtless without a conductor. AI controls your car, selects your favorite songs, second guesses your doctor's diagnosis, assesses your insurance claims, detects fraud on your credit card account, or, soon, may underwrite your loan applications or select stock trades. Now that companies can harness the increasing computational power, almost-limitless cloud systems to process Big Data, and the ubiquity of Internet of Things (IoT), AI has matured towards large scale implementation and AI-based R&D and deployments are spiking. PwC reported from Tractica, a market research firm, that estimates of AI-generated revenues of $644 million in 2016 will grow to $15 billion by 20222, while Gartner predicts that by 2020, 80% of CIOs will be piloting AI programs through a combination of buy, build, and outsourced efforts3. Given the relative novelty of AI R&D and the need for players in the field to rely a combination of innovative analytics, Big Data and computational power, not to mention their need for speed, AI transactions are likely to bring together players who may have not traditionally worked together: larger established corporations with extensive means now partnering with smaller - and nimble - startup ventures4. Citedby Ajun Kharpal, Stephen Hawking WarnsAboutA.I., CNBC TECH TRANSFORMERS (Nov. 6, 2017), https://www.cnbc.com/2017/ 1/06/stephen-hawking-ai-could-be-worst-event-in-civilization.html. 2 Anand Rao, A Strategist's Guide to Artificial Intelligence, PwC STRATEGY + BUS., Summer 2017. s Predicts 2018: Artificial Intelligence, GARTNER, Nov. 13, 2017, at 1, 2. For a detailed analysis of such platforms and new structures, see Tobias Weiblen & Henry W. Chesbrough, Engaging with Startups to Enhance Corporate Innovation, 57 CAL. MGMT. REV., no. 2, Winter 2015. ISSN 1754-0607 print/ISSN 1754-0607 online Internati'onalln-house Counsel Journal

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