#United States #New York #Deloitte #Generative AI #Private Equity

Deloitte's 2025 GenAI in M&A Survey

Deloitte recently published its first-ever "2025 GenAI in M&A Survey", revealing a remarkable trend among corporate and private equity (PE) leaders regarding the increasing utilization of Generative AI (GenAI) in dealmaking. In this survey, conducted amongst 1,000 industry leaders across diverse sectors in the U.S., it was found that a significant 86% of organizations are already integrating GenAI into their M&A workflows.

The Surge of Adoption

The findings of the survey illustrate a rapid development in the adoption of GenAI, with 65% of respondents indicating that they integrated the technology within the past year. This newfound enthusiasm highlights a growing awareness among dealmakers about GenAI's capabilities to reshape traditional M&A processes. According to Erik Dilger, managing director at Deloitte Financial Advisory Services LLP, "dealmaking is poised to be transformed by GenAI, and organizations are aligning their investments to harness these benefits."

Investment Trends

Investment in GenAI is on the rise, with a striking 83% of surveyed entities investing over $1 million specifically for their M&A teams. Among these leaders, 88% were from private equity firms, with 77% representing corporate organizations. Notably, many anticipate further investments in the next 12 months, with 54% of PE and 58% of corporate leaders predicting slight increases, while 24% of PE and 28% of corporate leaders foresee significant boosts in their expenditures.

Expectation of Returns

A crucial finding from the survey indicates that organizations expect tangible returns on their GenAI investments, with many anticipating to see these returns manifest within the next one to three years. This optimism is distinctly pronounced among private equity firms, where 81% express this expectation, closely followed by 80% of corporate entities. This forecast has led to a strategic shift wherein entities are now prioritizing GenAI initiatives that are likely to deliver direct, measurable impacts on their operations.

GenAI's Role in Deal Phases

While GenAI is identified to potentially revolutionize all phases of the deal cycle, its applications have primarily gained traction in the pre-signing stages. The data reveals that 40% of adopters are applying GenAI for M&A strategy and market assessment, while 35% focus on target identification and due diligence. This bifurcation highlights the technology's initial focus on enhancing strategic decision-making and facilitating smoother deal processes before contracts are signed.

Challenges in Adoption

Despite the promising trends, respondents do exhibit caution regarding GenAI implementation. A substantial 67% cited data security concerns as their foremost issue, followed closely by worries over data quality and availability at 65%. These concerns underscore the necessity for organizations to not only adopt innovative technologies but also ensure robust security measures are in place to safeguard sensitive data.

Conclusion

Overall, Deloitte's inaugural GenAI in M&A Survey paints a positive picture of the future of dealmaking, where technology is expected to play an integral role in decision-making and operational strategies. As the adoption of GenAI continues to grow, businesses will need to balance innovation with caution to fully realize its potential benefits in the dynamic world of mergers and acquisitions. For further details and exploration of these findings, read Deloitte's complete survey here.