COLOMBIA Trends and Developments Contributed by: Jaime Trujillo, Juan David Velasco, Natalia Ponce de León and Angelica Navarro, Baker McKenzie S.A.S.
Artificial intelligence (AI) in due diligence Identifying how target companies are relating and adapting to AI developments has become a key part of conducting due diligence. It has become important to identify whether the target has incorporated AI tools and applications into its business and whether the AI tools being used comply with intellectual property (IP) regulations and are not misusing IP rights from third parties. Buyers conducting due diligence in IP-related com - panies are also seeking to understand whether the IP rights of the target are properly protected from poten - tial misuses of third parties’ AI developments. Integration of AI The adoption of AI is transforming the M&A landscape by streamlining processes, enhancing decision-mak - ing and improving efficiencies. Advanced AI tools now go beyond traditional data analysis by generat - ing summaries, flagging risks, automating contract review, and supporting valuation through predictive analytics, which is helping legal professionals and investors make more informed decisions. This techno - logical advancement is expected to continue shaping the M&A market in the years to come. In the Colombian legal sector, AI is increasingly being used in due diligence, document preparation and deal execution overall. ESG considerations Environmental, social and governance (ESG) factors are playing an increasingly critical role in M&A and corporate-related processes. Investors now have more sophisticated tools to assess and verify com - pliance with ESG standards, while local regulations increasingly provide companies with clearer guidance on both implementing ESG practices and reporting on their compliance with such ESG standards. Accord - ingly, investors are prioritising thorough due diligence on ESG matters to ensure that potential targets align with their own ESG values, have sustainable business models and are not exposed to significant reputational risks. This focus on ESG integration is becoming a key driver in decision-making processes, as investors seek to mitigate risks and capitalise on opportunities related to sustainability.
The National Artificial Intelligence Policy Following the adoption of the National Artificial Intel - ligence Policy in 2025, Colombia has continued advancing towards a more structured regulatory and institutional framework for AI, with particular emphasis on IP, copyright and digital risks. Colombia has recently proposed multiple bills in the Senate requesting regulatory updates from the Colom - bian Copyright Office, as the current law from 1982 applies only to content created by human beings. However, ongoing discussions are now exploring hybrid authorship models that recognise collabora - tion between humans and AI, which may become part of future reforms. In parallel, administrative authorities, such as the Colombian Trade Mark Office, have begun incorpo - rating AI into IP administration processes, particularly in trade mark examination and similarity searches. At the same time, they are strengthening compliance requirements for technology transfer agreements involving data and AI systems. Guidelines on cybersecurity, privacy and proportionate use, regulating the development and use of AI in Colombia On 20 May 2025, Congress introduced Bill No 422 to regulate AI. The bill draws on international models such as the EU Artificial Intelligence Act and a Brazil - ian bill. It outlines incentives, risk classifications and accountability mechanisms for AI development and deployment in Colombia: • national AI oversight and regulatory authority – the Ministry of Science, Technology and Innovation will be the agency responsible for supervising and regulating the development and use of AI; • adaptation and review – the Ministry will periodi - cally review and update the law to ensure that it remains relevant in light of technological advance - ments; • regulatory sandboxes – these controlled environ - ments will allow for the testing of AI innovations under flexible regulatory conditions, promoting responsible experimentation;
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