AI in M&A: Where art and science meet has been saved
Perspectives
AI in M&A: Where art and science meet
The evolving role of Generative AI
There’s plenty of hard arithmetic in M&A, but it’s not all about numbers. There’s art alongside the science, and parts of the life cycle depend more on heuristic judgment than on quantifiable metrics. Learn why there is a role for Generative AI in M&A, but it may not always be a starring one.
Where AI in M&A needs human help
Organizations should embrace Generative AI as an ally in the M&A life cycle. The challenge in doing so is not to automate as much as possible, but to blend the precision of data-driven insights with the intuitive judgment it takes to navigate the intricacies of M&A and valuation.
Where AI fits into the arrangement
M&A and valuation have evolved from manual analysis to data-driven, tech-supported processes. “Traditional AI,”, like machine learning, already automates risk assessment and sentiment analysis. Generative AI in M&A is set to deepen these capabilities, but technology still has its place. You may look up a pancake recipe on a tablet, but you don’t use the tablet to flip the pancakes. The role of art is persistent—and invaluable. Here is a look at places in the life cycle where Generative AI can further enhance processes:
Key controls and procedures for AI in M&A
Keeping AI within guardrails is a business responsibility. Some of the key controls and procedures we should enable to oversee this process include:
Governance and oversight: A dedicated group should ensure AI operates within ethical and regulatory boundaries, verifying outcomes, maintaining documentation, and setting stakeholder-focused guidelines.
Human oversight: Humans should validate AI results, with all conclusions traceable to original data sources. Regular, comprehensive review is critical.
Data integrity: The data used by Generative AI must be kept accurate and up to date.
Training: Staff should receive training in using AI tools effectively, especially Generative AI, and understand the role of human oversight.
A collaboration that’s greater than the sum of its parts
Technology, process, and people are the cornerstones of effective M&A. Machines enhance our capabilities, but they never make human’s expendable; – rather, they complement us, amplifying our M&A efficiency and value. The seamless integration of technology, processes, and human perception and experience has the potential to unlock new frontiers of value and efficiency in M&A. Generative AI in M&A is ready to significantly enhance the efficiency and effectiveness of M&A processes, from formulating strategies to monitoring post-merger
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