Imagine this: 86% of companies are now leveraging AI for an unexpected but crucial business function—mergers and acquisitions (M&A). That's right, artificial intelligence is increasingly becoming a key player in the complex world of corporate deals, according to a recent Deloitte study.
But here’s where it gets controversial: while many organizations are excited about AI’s potential to revolutionize M&A, concerns about data security and ethics loom large. Let’s dive into how this technology is reshaping M&A and what challenges businesses face along the way.
Deloitte surveyed 1,000 senior business executives and discovered that a whopping 86% of their organizations have already adopted generative AI tools in their M&A workflows. Even more striking, 65% of these implementations took place within just the past year, spotlighting a swift and growing reliance on AI to unlock new efficiencies and deeper insights in deal-making.
Why M&A? Because mergers and acquisitions involve a labyrinth of legal documents, financial analyses, strategy development, and human resource coordination—tasks where AI can offer significant support by automating routine work and surfacing valuable patterns.
Yet, there’s no one-size-fits-all AI solution that manages every aspect of M&A completely. The Deloitte study reveals that generative AI is most commonly used during the earlier stages of the M&A process, such as shaping strategy and evaluating markets—each seeing about 40% AI usage. Additionally, nearly half of companies using AI for M&A harness it to draft preliminary legal documents, helping speed up what is often a paperwork-heavy phase.
When it comes to the later stages—like detailed valuation or final deal negotiations—AI’s role diminishes, probably due to the intricate, high-stakes human judgment still required.
But there’s a catch. The study uncovered that 67% of executives worry about data security risks posed by AI, with closely related concerns including data quality (65%), reliability of AI models (64%), and ethical issues such as bias (62%). These challenges highlight that despite AI’s promise, we’re not yet at a stage where it can fully supplant human expertise in M&A.
To address these hurdles, 57% of organizations are investing in upskilling their teams—providing training to ensure employees can responsibly and effectively manage AI technologies. Meanwhile, the need for clearer regulations and stronger data governance practices is becoming more urgent, to safeguard sensitive deal information and build trust in AI systems.
Interestingly, an overwhelming 83% of those surveyed believe generative AI will have a moderate to profound impact on future M&A decision-making. This line of thinking is echoed by Gartner’s recent research pointing to “decision intelligence” as a transformative tech trend that integrates AI-driven analysis into business strategies.
Still, the reality remains: AI tools sometimes generate erroneous or fabricated information—known as “hallucinations” in AI parlance—which makes full reliance on these systems risky. This is not just a technical glitch but a crucial ethical and operational dilemma for companies navigating high-value deals.
So here’s a thought-provoking question: Should companies push harder to embed AI in their M&A processes, accepting certain risks for potentially massive gains? Or should they proceed more cautiously, focusing on human oversight and gradual AI adoption? The debate is wide open.
As AI continues to evolve, improvements in regulatory safeguards and employee training could ease many current concerns, enabling businesses to harness generative AI’s full power confidently. For now, though, the M&A landscape is witnessing a fascinating—and somewhat contentious—transformation.
What’s your take? Is AI the future of mergers and acquisitions, or are its limitations too significant to overlook? Share your thoughts and join the conversation below!
