Brattle Experts Author Article on Generative AI Valuation Considerations
Published in INSOL International
There are many economic risks related to generative artificial intelligence (Gen AI), especially considering the potential legal challenges Gen AI firms may face regarding ownership, copyright infringement, and biases in generated output. Like disruptive technologies of the past, core Gen AI companies – both startup firms and the internal divisions of some of the world’s largest technology companies – may face a wave of business failures that lead to bankruptcy or insolvency proceedings.
In a new technical paper published in INSOL International, Brattle experts Dr. Shastri Sandy, Rafael Klotz, and Ethan Moore seek to provide insolvency practitioners with an understanding of generative AI, potential industry impacts of gen AI, and an explanation of why insolvency professionals should be thinking about generative AI. The authors detail the challenges in valuing core Gen AI companies in a restructuring and insolvency context, and provide suggestions on how to approach valuations of this emerging technology.
The paper, “A Primer on Generative AI and Valuation Considerations for Insolvency Professionals,” is available below.
