Tom Cockriel, co-leader of the Business Transactions Practice Group at Trenam Law, examines the growing role of cybersecurity and artificial intelligence in mergers and acquisitions in the October 2026 issue of Tampa Bay Business & Wealth.
In his article, “Cyber and AI Diligence in M&A,” Cockriel explains why cybersecurity diligence has become an important part of transactions across industries. He outlines key questions buyers should consider early in the process, including whether a company has experienced a reportable security incident, what sensitive data it maintains, whether that data creates additional regulatory obligations and whether the company has adequate cyber insurance.
Cockriel also highlights several areas of confirmatory diligence, including penetration testing, data collection and retention practices, employee access controls, cybersecurity training and third-party vendor agreements. He emphasizes that buyers should look beyond written policies to determine whether a company’s stated security practices are actually being followed.
The article also addresses the growing need for AI diligence in every transaction. Cockriel recommends evaluating the AI tools a company knowingly uses, identifying potentially undisclosed employee use of AI, and reviewing intellectual property ownership and training-data provenance when a company develops or modifies its own AI models.
Cockriel concludes by encouraging buyers to address diligence findings directly in transaction documents and post-closing integration plans. Depending on the risk, this may include representations, indemnities, escrow holdbacks or closing conditions requiring remediation before a deal closes.
“Each of these questions costs far less to ask before closing than to answer afterward,” Cockriel writes. “A buyer who finds an unlicensed dataset or an unpatched system during diligence still has a negotiating point. A buyer who finds it two years later simply owns it and the costs associated with it.”
Cockriel co-leads Trenam’s Business Transactions Practice Group and focuses his practice on mergers and acquisitions, capital raising, intellectual property and technology agreements, and commercial contracts.
Read “Cyber and AI Diligence in M&A” in the October 2026 issue of Tampa Bay Business & Wealth here.
