If Your AI Vendor Goes Bankrupt: Tackling Privacy And 'Utility'

As artificial intelligence (AI) becomes further embedded in core business operations, bankruptcy proceedings involving AI vendors and their customers are poised to raise increasingly complex issues. In part one, we examined intellectual property considerations that may surface in these cases. In this second installment, we turn to consumer privacy risks and the strategic implications of classifying AI vendors as utilities or critical vendors. These emerging questions will shape how stakeholders protect sensitive data, preserve operations, and navigate restructuring negotiations.