Navigating AI Law and IP Strategy: Cynthia Cole on Building Legally Resilient Tech Companies
Cynthia Cole doesn’t just advise on technology law—she shapes how companies architect their legal foundations for scale. As Chair of Baker McKenzie’s Global Commercial, Tech and Transactions Business Unit and a recognized thought leader in AI governance, Cynthia operates at the intersection of innovation and regulation. Named one of California’s “Top IP Lawyers,” she’s guided countless technology companies through the complex landscape of AI compliance, intellectual property protection, data privacy, and cross-border transactions.
For female entrepreneurs building AI-powered businesses or navigating tech M&A, Cynthia brings hard-won insights from the front lines of emerging regulation. With states like Texas and Colorado implementing comprehensive AI governance frameworks and data privacy laws evolving across jurisdictions, the legal landscape has never been more challenging—or more critical to get right from day one.
In this conversation, Cynthia shares practical strategies for balancing innovation with compliance, protecting intellectual property without sacrificing deal leverage, and building the kind of transparent, traceable data governance that makes companies attractive to investors and acquirers. Her advice is direct: understand your data sources, structure for transparency, and never be afraid to hold your ground on what matters most to your vision.
I am not your attorney. Reading this Q&A does not create an attorney-client relationship and the article itself is not legal advice. These are general thoughts and should not be relied upon as a substitute for legal advice tailored to your specific circumstances. For advice about your business, please consult your own attorney, or reach out to me directly if you need an attorney.
AI Governance and Compliance for Emerging Tech Companies
Q: As Chair of Baker McKenzie's Global Commercial, Tech and Transactions Business Unit and a recognized thought leader in AI law, you've been tracking the evolving regulatory landscape where states like Texas and Colorado are leading with comprehensive AI governance frameworks. For female entrepreneurs building AI-powered products or incorporating AI into their businesses, what proactive legal strategies should they implement now to stay ahead of emerging regulations? How can they structure their AI development processes to navigate the complex web of state and federal compliance requirements without stifling innovation?
This is such a great question! There can be a tension in creativity and growth vs process and structure but that is exactly what you need to balance in AI. Many regulations around AI products are focused on transparency and explainability and that starts from the ground up. Make sure that you understand and can trace any data and IP that is used in your product or service and create a process around auditing and updating that allows you to continue to capture that information as you scale. And be careful not to oversell or promise too much in your terms and conditions. Keep it transparent and most of all, keep it about where you see your product going in the future. Don't promise something now that you know you will be doing away with in 6 months.
Strategic IP Protection and Technology Transactions
Q: With your extensive experience in complex cross-border IP and data-driven transactions and recognition as one of California's "Top IP Lawyers," how should female founders approach intellectual property strategy when launching technology companies? What are the key IP considerations they should address before raising funding or entering partnerships? How can they structure technology licensing agreements and joint ventures to protect their innovations while enabling business growth across international markets?
Focus on what you want to achieve in the transaction and let the rest go. So much depends on how much leverage you have and who you have across the table from you. Often, I see people giving away too much in order to bring in capital or strategic partnerships. Think outside the box—maybe you can carve out a future interest for yourself or re-acquire an interest if the other party isn't able to maximize value after a few years. And for any international transactions, get the right counsel. As someone who has worked in multiple jurisdictions, don't expect that the laws or the business habits are the same. Ask and get counsel that can "translate" for you, and help you put the issues in context that aligns with your goals and experience. And don't be afraid to be confident about the value you have created. Hold your ground on what matters to you.
Data Privacy and Cybersecurity in M&A and Fundraising
Q: Given your expertise in data privacy compliance (including CCPA, GDPR, and emerging neural data protections) and your experience advising on tech M&A transactions, what data governance practices should female entrepreneurs establish early to make their companies attractive to investors and acquirers? How can they build privacy-by-design into their products while preparing for due diligence processes? What are the most critical data privacy mistakes you see startups make that hurt their valuation or derail deals?
It's all about the data. Where did you get it and how are you using it. Keep track and don't take on the risk of data from dubious sources. Or if you do, create a mechanism to dump it once you suspect a problem. Keep it traceable and modular. Have a story that makes sense and a defensible position. No one expects 100% compliance but having a strategy as to how and why are an advantage.
