Guide to AI in M&A
Leverage AI to drive value and close deals
Gain a competitive edge with AI-powered tools to automate and accelerate M&A processes.
Explore AI for due diligence as well as the risks and ethical considerations.
Learn about the role of AI governance for businesses undertaking mergers and acquisitions.
Merger and acquisition processes can be streamlined and accelerated with carefully implemented support from artificial intelligence (AI).
According to research from Accenture, executives have ranked ‘Strategy & M&A’ as one of the top three areas they plan to reinvent within the next three years. 64% of M&A executives are confident that generative AI will drive this transformation of the dealmaking process.
From deal sourcing to post-merger integration, AI is poised to enhance efficiency, accuracy, and strategic decision-making at every stage of the deal lifecycle.
Identify targets for M&A with AI
As uncertainty becomes the norm, adapting M&A strategy to a changing global landscape can future-proof businesses and support adaptation. This means casting a wider net when sourcing deals and considering a range of targets locally or internationally.
In a PwC CEO survey published in January 2025, 40% of CEOs say their companies began competing in new sectors in the past five years, and four in ten CEOs believe their company will no longer be viable in ten years if it continues on its current path. As sector boundaries blur under global brands, innovative M&A can help keep companies relevant and profitable.
Broader, faster market scanning
AI can scan vast amounts of market data, financial reports, news articles, and even social media to spot potential acquisition targets, within and outside the current sector. Machine learning algorithms detect patterns and signals that indicate a company is a prime acquisition candidate.
Predictive analytics
With AI's predictive analytics, forecasting market trends and company performance is like having a crystal ball. By analyzing historical data and current market conditions, AI can predict future opportunities, helping investment bankers to make more informed decisions.
AI-powered due diligence
Thorough due diligence is essential to assess an investment for cultural fit, synergy, and, of course, current and future financial performance. Due diligence can be an intense time for both parties to a deal as time must be balanced with attention to detail. Throughout 2024-25 AI has shaped due diligence processes in the Benelux region of Western Europe, improving predictive modelling and enhancing risk assessment.
Automating document review
AI due diligence harnesses natural language processing (NLP) to automate the review of massive volumes of documents. AI extracts relevant information, identifies red flags, and checks compliance with regulatory requirements.
This speeds up the due diligence process and reduces the risk of human error. Research from Thomson Reuters suggests that AI could reduce DD document review time by up to 70%.
Risk assessment
AI systems can evaluate financial, operational, and strategic risks associated with potential deals. By analyzing historical data and identifying patterns, AI provides comprehensive risk assessments, highlighting areas that require further investigation. AI can act as a magnifying glass, bringing hidden details into sharp focus.
AI redaction for faster due diligence preparation
Ansarada’s Bulk AI Redaction tool ensures confidentiality with ease and at speed. Redact up to 500 documents in seconds, with AI picking up common patterns for you instantly.
Real estate AI Due Diligence
Due diligence in real estate M&A often includes investigating the assets of the target company to assess their value and identify any maintenance and ongoing costs. AI can quickly summarize and analyze contracts, source market valuations and identify any risks that may arise, providing a report for a professional to verify and assess.
AI in valuation and negotiation
An initial valuation report created using AI can be verified by M&A teams, providing a quick way to rapidly assess a deal and start negotiations.
Real-time valuation models
AI can enhance the accuracy of company valuations by integrating real-time data and advanced analytical models. These models consider a wide range of variables, including market conditions, competitive landscape, and internal company metrics, providing a more dynamic and precise valuation. This leads to more effective negotiations and fairer deal structures.
Evaluate engagement and deal-readiness
Virtual data rooms with embedded AI functionality can track when documents are accessed and by whom. Using user behavior data from previous deals, AI can predict which companies are ready to negotiate and move toward closing the deal.
Predict which bidders are ready for the next steps
Ansarada’s AI Bidder Engagement Score is trained on thousands of deals. It can predict the winning bidder in your M&A deal with 97 per cent accuracy by day 7 of the deal.
AI personal assistant and smart contracts
Dread sending emails? An AI personal assistant can do it for you, using pre-prepared triggers and pre-approved content. AI can support many of the tedious, time-consuming administrative tasks involved in an M&A transaction.
Streamlined processes
AI can automate administrative tasks such as regulatory filings, compliance checks, and coordination between parties. This reduces the administrative burden, allowing legal and banking professionals to focus on higher-value activities.
Smart contracts
Smart contracts automate the execution of a digital contract stored on distributed ledger technology or a blockchain, where it can be independently verified and checked. Smart contracts such as NDAs can self-execute when predefined ‘if/then’ conditions are met.
Automating standard contracts can reduce the time and cost associated with closing deals and can ensure transparency.
AI in post-merger integration
Post-merger integration is often the trickiest part of an M&A deal. Information and insights surfaced during the due diligence process can inform and benefit post-merger integration, allowing companies to identify and mitigate merger risks.
Cultural and operational alignment
AI can facilitate smoother integration by analyzing and predicting cultural and operational fit between merging companies. By assessing factors such as employee sentiment, communication patterns, and workflows, AI can identify potential conflicts and recommend alignment strategies.
AI insights can be the difference between a potentially rocky merger and a smooth, successful union no matter the type of post-merger integration.
Performance monitoring
AI-driven analytics can monitor the performance of the merged entity in real time, providing insights into the success of the integration process and highlighting areas needing attention. This enables more agile post-merger change management and quicker responses to emerging issues – a dashboard providing real-time health checks of the new entity.
Generative AI in M&A
Seventy percent of M&A decision-makers anticipate that GenAI will boost return on transactions. It’s undeniable that companies must establish processes to integrate this technology into M&A processes to stay competitive.
Since ChatGPT arrived publicly in late 2022, Gen AI has been tested and tried in various business processes, with varying degrees of success. Generative AI was used in M&A processes by just 16% of M&A teams in 2024, this is expected to reach 80% by 2027, according to Bain & Company. Here are a few examples of how Gen AI can support effective and efficient M&A processes and decision-making.
Scenario analysis
Generative AI can simulate various deal scenarios and their potential outcomes, helping dealmakers understand the implications of different strategies and terms. This allows for better preparation and more strategic decision-making during negotiations. Imagine having the ability to run countless "what-if" scenarios in minutes, giving you the upper hand in any outcome.
Identify potential synergies
Generative AI can identify complementary strengths and opportunities for collaboration between merging companies. It can suggest new product ideas, market expansion strategies, or operational efficiencies that neither company could achieve independently. Generative AI is like having an innovation lab at your disposal, constantly generating new ways to create value.
Support creativity and innovation
Gen AI can support creativity and foster innovation when creative prompts are combined with existing data to find untapped innovation possibilities in the merged entity. Potential applications and outcomes include development of new products, services, or business models that may contribute to long-term growth and a competitive advantage.
Lowering human risk with AI
Automating processes can help reduce the tedium of repetitive tasks, allowing roles within the M&A team to focus on strategic and higher-value tasks. AI systems are trained to undertake very specific tasks, and computer programming ensures that all defined processes are accurately completed without error.
Tasks like redaction can be automated, with all programmed personal identifiers removed from documents before sensitive information is shared, Likewise, automating contracts like NDAs ensures that individuals are legally bound before they gain access to sensitive information.
Risks and benefits of AI
The benefits of AI, like automation, virtual assistance, prediction, and rapid data analysis, ensure that businesses are willing to accept a level of risk. However, it is critical that risks are understood and accounted for when creating AI processes for M&A.
Some of the risks include errors in AI, failure to account for human emotion and data privacy. Understanding both the benefits and risks helps deal makers to develop policies and processes that mitigate risk while benefiting and streamlining processes.
See how dealmakers are using our AI insights to win
Ethical implications of AI in deals
Companies ought to consider the ethical implications of AI for M&A, from digital amplification skewing reports and outcomes to algorithmic bias, cybersecurity risks and privacy risks.
Human oversight and direction of AI use is critical to ensure that Ai-informed reports and data are fit for purpose and include human-centric considerations.
AI governance and its business impact
One-third of CEOs interviewed in PwC’s 28th Annual Global CEO Survey, published in January 2025, say that Gen AI increased revenue and profitability over the previous year, however, trust is a hurdle to adoption.
Embedding responsible AI practices into M&A processes can mitigate the risk of negative business impacts and enable companies to benefit from data-driven, AI-supported decision-making. Proactively approaching AI governance enables companies to embrace the benefits of AI and stay competitive.
Embrace AI-powered M&A with Ansarada’s established, secure, and proven tools.
Leveraging AI technologies can lead to more efficient, accurate, and strategic M&A processes and enable companies to reinvent and reimagine M&A strategy. AI can help to streamline tasks, improve relationships, and mitigate human error, enabling stronger and faster best-practice decision-making.
Stay ahead of the competition with a virtual data room powered by AI trained on thousands of deals and redefine M&A processes with Ansarada’s secure, ISO-certified virtual data room and due diligence tools.