How embracing AI in M&A can drive exponential value

4 bold predictions and 4 strategic actions

As organizations build toward their brightest future, AI in M&A is a vital component. So is acting early. GenAI’s impact on processes throughout the deal life cycle and the growing use of mergers, acquisitions, and divestitures to improve AI capabilities are among the key trends taking shape. Let’s explore all that we’re seeing in the market and how leaders can seize first-mover advantage.

The transformational potential of AI in M&A

Artificial intelligence (AI) has a powerful new variant, Generative AI (GenAI). GenAI shows promise as game-changing technology given its combination of novel features, accessibility by nontechnical users, and scalability across an enterprise. This combination of traits has the potential to unlock new sources of value across the enterprise. Unsurprisingly, organizations want to know what this all means for dealmaking and, most importantly, how to realize its value to mergers and acquisitions (M&A).

It is easy to see how GenAI in M&A could create a competitive edge for early adopters. Its ability to ingest, interpret, and summarize significant quantities of data; automate manual and labor-intensive processes; and uncover new insights and questions are all potential avenues for enhancing returns during M&A. The opportunities are numerous, but there is a clear risk: Leaders who choose to defer action may lose ground to those who seize first-mover advantage.

Before diving in headfirst, M&A leaders and executives should ask: How will GenAI affect M&A, and how can we capitalize on this opportunity?

Artificial intelligence and mergers and acquisitions

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Where we’re headed: 4 predictions for AI in M&A

4 strategic steps to increasing AI capabilities

Strategy and deal teams that have not yet acted should consider four moves to inform their strategy. We see each move as a “no regrets” decision that can help position a company for effective and sustainable growth in parallel with the AI revolution.

New tools, new rules

AI presents unparalleled capabilities that can supercharge productivity, identify value in novel ways, generate rapid insights, and assist with identifying and mitigating risks. These capabilities are likely to rapidly change the work we do today and reshape how we think about M&A. GenAI not only has the potential to change M&A from a process standpoint, but to also influence the deals we seek, the way we compete, and the sources of value we identify across the enterprise. Lastly, the pace of adoption is increasing, and those who wait face disruption from those who act.

Deloitte has seen these shifts at work as we advise and serve our clients during this technological revolution. As we have observed these trends and forces firsthand, it seems certain that enterprises across all industries will have lessons ahead. They will come from experience, not theory—and those who learn them earliest stand to reap the greatest benefits.

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