The official IBM AIX Live Update Best Practices are well documented here:
Best practices for the Live Update function
Please refer to these when planning a Live Update implementation in your environment.
I have written about my experiences with Live Update numerous times.
AIX Live Updates
How to Live Update Your AIX System Without Rebooting the Server
AIX Live Update in a PowerVC Managed Cloud
Ive been testing and working with Live Updates over the last couple of years (since 2015). What follows are some of my best practices, based on my experiences using this tool in the field. They are not official IBM best practices and should be treated as such. These are merely guidelines, based on anecdotal data I have collected whilst using the tool. I hope you find them useful. Ill update this page as I discover new items to add (or remove from) this list.
Chriss AIX Live Update Best Practices for 2020!