- Deal technology procurement now requires sign-off from three groups: the deal team, the CISO, and the compliance officer, each with different criteria the vendor must meet
- Most deal technology vendors have added AI, but few can produce the governance documentation enterprise procurement now requires as a first-round question
- ISO 42001 for AI management has become an advantage for vendors
- For any cross-border deal, compliance coverage is a procurement baseline. Without verification, vendors can’t advance
MINNEAPOLIS, MN, April 23, 2026 (GLOBE NEWSWIRE) -- Starting in April 2026, buying deal technology now involves more than just the deal team. The Chief Information Security Officer (CISO) has to approve the platform’s security, the compliance officer must confirm it meets legal and regulatory requirements, and the deal team has to make sure the platform can handle the entire transaction before signing any contract.Datasite, the global SaaS provider of AI-powered workflow collaboration and automation solutions for mergers and acquisitions (M&A), investment, and strategic projects, represents the standard enterprise teams are now measuring against.
"Today, independent verification of a vendor’s security and compliance standards is essential in procurement,” said Matt Summers, Executive Vice President, Head of Product at Datasite. "This validation builds trust and lays the foundation for smoother, more successful deal outcomes."
KEY FACTS:
- Datasite has ISO 27001, 27017, 27018, 27701, 42001, and SOC 2 Type II certifications
- AI capabilities for Datasite have been developed and managed in-house with client data isolation and no third-party model training on deal content
- Datasite has a 30-day data deletion policy after project termination
- Datasite processes 55,000+ deals annually
The AI Governance Gap
In a survey on the State of Generative AI in the Enterprise, Deloitte found compliance with regulations (38%) and difficulty managing risks (32%) were the top two barriers to developing and deploying generative AI. Many deal technology vendors have added AI to their platforms, yet few can answer the questions that enterprise procurement now asks about how that AI works. The critical questions center on the development approach:
- Is the AI built in-house, or does it rely entirely on third-party models?
- If third-party models are used, what data goes to them?
- Is client deal information ever used to train or improve those models?
- How does the vendor demonstrate that their AI is developed in-house or with properly governed third-party models?
These questions have moved from edge cases to standard procurement requirements. Vendors that can show they have ISO 42001 certification, which independently checks their AI development and deployment practices, have a clear edge over those that only report their own controls.
Verified Security Over Claims
The gap between what deal technology vendors claim about security and what they can independently verify is one of the greatest challenges for procurement teams. Many vendors may claim to offer enterprise-grade security, yet only independent certification can reveal the true picture.
“When security is integrated into a platform’s architecture from the ground up, audit reports can provide answers to critical questions,” Summers said. “This provides confidence that sensitive information is being protected and data handling is trusted, reducing risks during every stage of the transaction.”
For transactions where security is the top priority, platform validation provides a strong defense for regulators.
Cross-Border Deals Require Verified Compliance
Compliance coverage is a requirement for any deal that crosses borders. GDPR in Europe, HIPAA for healthcare-related transactions in the US, ITAR for defense and controlled technology, DPA in the UK, CPRA in California, and APP in Australia each impose specific requirements for how data is handled, stored, and accessed. For example, European regulators require a precise answer regarding the location of deal data storage; simply stating "on our global cloud" is unacceptable.
The same logic applies to support. When a buyer in Tokyo needs platform access at 2 a.m. London time, the platform either handles it or the deal stalls. Ensuring 24/7/365 support across multiple languages rounds out the operational infrastructure, making it work for modern workflows.
What Enterprise Teams Evaluate in 2026
In 2026, enterprise teams looking at deal technology are focusing on five key factors that are now standard in every buying process.
- Security architecture: having recognized certifications, strong encryption, separating each project, and providing audit reports that can be shared.
- AI governance: requires isolated training data, prompt data deletion after projects, and ISO 42001 certification.
- Global compliance: mandates region-specific hosting, coverage across jurisdictions, and 24/7/365 support.
- Deal lifecycle coverage: confirms whether the platform supports all deal stages or just diligence.
- Track record: evaluates deal volume, client quality, and platform uptime.
Vendors meeting all five criteria have built their platforms for the most demanding deal teams in the world.
FAQ:
Q: What certifications should a data room vendor have for enterprise M&A?
A: At minimum, ISO 27001 for information security and SOC 2 Type II for operational controls. Requirements should also include ISO 27017 for cloud security, ISO 27018 for cloud privacy, ISO 27701 for privacy management, and ISO 42001 for AI management. Each should be independently verified with audit reports.
Q: How should CISOs evaluate AI governance in deal technology?
A: Focus on three areas. Development model: does the vendor develop AI in-house or rely on third-party models? Data usage: is client deal data ever used for AI training? Control: what is the data deletion policy, and can AI features be fully disabled? The strongest position is a platform that develops AI internally with strict data isolation and independent AI governance certification.
Q: What data sovereignty features should enterprise teams require?
A: Require region-bound hosting that guarantees data stays within specific geographic boundaries. Compliance coverage should span GDPR, HIPAA, ITAR, DPA, CPRA, LGPD, and APP. Including 30-day data deletion policies and full data lineage with audit trails for regulatory traceability is also essential. These should be standard features, not premium add-ons.
Q: What red flags should procurement teams watch for in deal technology vendors?
A: Four patterns warrant closer evaluation: security certifications cited on the website but audit reports unavailable on request; AI features powered entirely by third-party models with no data isolation guarantees; no region-bound hosting or data sovereignty controls; and a platform that covers only the diligence phase rather than the full deal lifecycle. Any of these warrant further scrutiny before contract signature.
Sarah Evans Partner, Head of PR, Zen Media sarah@zenmedia.com
