Alternative data and AI are rapidly reshaping investment strategies, creating new compliance pressures around data provenance, licensing and model governance. The results of Lowenstein Sandler’s sixth annual alternative data study reveal that firms now treat alternative data as foundational to research, with AI accelerating its value while heightening legal and operational risk. As firms deepen their reliance on AI-driven insights, they face tighter licensing restrictions, rising costs and increased scrutiny over how data is sourced and used. This article examines how organizations are navigating these trends, including evolving use cases, risk management challenges, and growing investments in AI and alternative data capabilities. See “Survey Finds Investment Managers Increasing Use of Alternative Data” (May 21, 2025).