Risks of AI to M&A Professionals

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Viewing 8 posts - 1 through 8 (of 8 total)
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  • #94777
    Jamie Morgan
    Member

    I’m interested in gauging the general feedback on this one – what are people’s opinions on some of the risks that AI may pose to both the M&A process and also M&A professionals?

    #94966
    Ilze Skadina
    Member

    I think the AI should not replace a human professional due to risks it can’t foresee, like some bias and fairness issues, ethical concerns etc., at the same time using AI for faster data analysis will differentiate between an efficient M&A professional and just an “average” one. The main risk for M&A professional is to stick to old practices and not follow the development of AI and not learning to use it’s advantages.

    #94974
    Tim Collman
    Member

    I believe that AI will ultimately have a very big impact on the M&A industry (and many others). As the programs get better, you will see it replace most of the diligence processes and many of the target identification processes. Professionals will still be needed to assess the deal beyond “it looks good on paper”.

    #95429
    Mirli
    Member

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    #95947
    Thinus
    Member

    I agree that some of the tasks like data gathering and analysis will be taken over by AI technologies, but there is still a fundamental need for a human element in looking at the information and understanding the impact on the organisation. As organisations are made up of individuals from multiple regions areas etc. the cultural and ways of working elements will still pay a vital role. Secondly, although AI can speed up the search process and possible opportunity identification, there is still many conversations happening outside public knowledge and strategies and synergies that an AI would not necessarily identify as good fit mergers.

    #95975

    Like in other industries the tasks that are candidates for machine learning will be taken over. I feel that a lot of the tasks in due diligence will be taken over by AI e.g. AI will be able to read through legal documents and provide exposure summary. Similarly valuation models / sensitivity analysis and value recommendations will likely be automated and drive by AI too. This means probably the overall cost of the deal making may come down and the speed of analyzing potential deal will increase. Nevertheless M&A professional will remain but only those who are able to use the AI tools 🙂

    #96033
    Sina Rohde
    Member

    To me M&A is Science & Art. Hence from my perspective AI can and will certainly impact the science piece of it, as pointed out in the above comments, basically providing better data faster starting already in the screening phase. However managing the overall project and looking to the aspect of managing sentiments of people I do not see AI taking over that part. Potentially though AI can support by providing insights into the most likely human behavior in various scenarios which then may help navigate.

    #96221
    Chris
    Member

    In my experience, AI will ultimately improve the efficiencies of M&A.
    .
    We have used AI extensively to add “different thinking” to areas like culture, experience bands, geographical mindset considerations, etc.
    .
    AI will enable teams to shorten and improve different phases of the M&A, both directly and indirectly. I’ve provided some direct examples above. Indirectly, think about how AI has improved the efficiecny of developers. In doing so, the cycles to integrate two different platforms will be drastically reduced, and in turn, reduce the overall time for a full integration process.
    .
    Exciting times.

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