86% of Businesses Use AI for This Unexpected Task

A surprising majority of businesses are now turning to artificial intelligence for assistance with mergers and acquisitions, according to recent industry research. A comprehensive Deloitte study surveying 1,000 senior executives reveals that 86% of organizations have integrated generative AI into their M&A workflows, with nearly two-thirds implementing these tools within the past year alone. This rapid adoption signals a significant shift in how companies approach complex corporate transactions, leveraging AI’s potential to streamline traditionally labor-intensive processes.

Despite this enthusiastic embrace, the survey uncovered substantial concerns about deploying AI in such sensitive contexts. Data security emerged as the primary worry, mentioned by 67% of respondents, followed closely by anxieties about data quality (65%), model reliability (64%), and ethical considerations including potential bias (62%). These concerns highlight the delicate balance organizations must strike between harnessing AI’s capabilities and managing its inherent risks in high-stakes financial operations.

The surge in AI adoption for M&A activities indicates that corporate investment is transitioning from experimental pilots to practical implementation. Business leaders are increasingly seeking tangible returns from their AI expenditures, particularly in domains where the technology can deliver measurable efficiency improvements. Mergers and acquisitions represent an ideal testing ground, given their complexity and the substantial resources typically required to complete them successfully.

Generative AI finds its strongest foothold in the preliminary phases of merger and acquisition activities. Approximately 40% of surveyed organizations employ the technology for strategy development and market assessment, while 48% utilize AI systems to draft initial legal documentation. These early-stage applications allow companies to accelerate their decision-making processes and reduce the manual labor involved in researching potential acquisition targets and preparing foundational documents.

As transactions progress to later stages involving valuation and final deal structuring, however, AI adoption decreases significantly. This pattern suggests that while organizations trust AI with preparatory work, they remain cautious about relying on automated systems for critical financial decisions and final negotiations. The complexity of these later stages, combined with the substantial financial stakes involved, likely contributes to this more conservative approach.

Looking ahead, an overwhelming 83% of business leaders anticipate that generative AI will exert moderate to substantial influence on future M&A decision-making. This expectation aligns with broader industry trends identified by research firms like Gartner, which highlight “decision intelligence” – using AI to analyze economic and commercial patterns – as an emerging force in corporate strategy.

To address both current limitations and future potential, more than half of surveyed companies (57%) report investing in employee training programs specifically designed to build AI competency. These upskilling initiatives aim to equip teams with the knowledge required to implement AI tools effectively while maintaining appropriate safeguards. Additionally, many organizations are looking toward improved data governance frameworks and potential regulatory interventions to create a more secure environment for AI deployment in sensitive business contexts.

The trajectory of AI in mergers and acquisitions will likely depend on how effectively organizations can mitigate risks while maximizing the technology’s analytical capabilities. As security protocols advance and workforce expertise grows, generative AI may assume an increasingly central role in shaping how companies identify, evaluate, and execute corporate combinations.

(Source: ZDNET)