Artificial intelligence (AI) seems poised to revolutionize the business world. One Forbes survey found that as many as 56% of respondents admitted to using AI for customer service, 51% use the technology for cybersecurity, and 49% use it as “digital personal assistants.” However, in the strategy and dealmaking world, “AI-driven deal technology” has just begun to rise. In the near future, we will see the technology expand its reach and reshape the deal-making world on a strategic level.
While many businesses have already begun implementing artificial intelligence in ways that affect low-level processes like manual labor and data entry, only a few pioneers in the field have started exploring the use of this powerful innovation for higher-level strategic processes and as a supportive tool for strategic decision-making and planning.
Dealmaking, such as investments, acquisitions, and mergers, has become part of the DNA of corporate growth. AI-driven deal technology will advance and accelerate the execution of such transactions at scale. Business leaders could use AI to optimize their strategic decision-making processes in transformative events like mergers and acquisitions, helping them make more informed, data-driven decisions with better outcomes for their business.
Today, most tools are used in the scouting and due diligence phases of deals. However, the potential to transform traditional approaches in the investment and deal-making process is at its inflection point. With the capabilities of LLM and new AI modules, acquisitions and investment processes will change dramatically. New data-driven methodologies, predictive analytics, and automated insights processes will be created to improve the accuracy and speed of evaluating potential deals.
“AI can assist in identifying high-value opportunities, assessing risk profiles, and modeling various financial outcomes; all of these capabilities will create more accurate algorithms for deal-making and strategic planning. The critical element in this transformation is collecting relevant and reliable data sets on which these models can be trained. The decision-making process in each merger or acquisition is different, and each stakeholder has a different perspective on what is a successful outcome. Therefore, AI models will not replace the human factor in the deal-making process; they will become a supportive decision-making tool for the deal-maker to use wisely throughout the execution of the different negotiation stages,” says Richter.
Ayelet Richter has rich experience in leading strategic processes that reshape businesses. She worked closely with VCs and startups as well as in executive leadership positions in global corporations. According to Richter’s observation, AI tools are only in the early stages of implementation in the dealmaking processes.
Richter gained her experience in corporate strategy and M&A at Stratasys, a leading Nasdaq-traded 3D printing company, where she was the company’s VP of Corporate Development & Strategy. She led multiple acquisitions, mergers, and integration processes and is considered an expert in strategic transformations.
In recent years, Richter designed methodologies for AI deployment in the dealmaking process and has worked closely with VCs, start-ups, and corporations to help them find ways to optimize complex investment processes by utilizing artificial intelligence capabilities.
Expanding the reach of AI in strategic processes
Forward-thinking leaders like Richter recognize that harnessing AI can enhance decision-making, improve synergies, and create long-term value for stakeholders in an M&A or investment process.
“A relative paucity of academic literature on the impact of AI on organizations’ strategic deal-making processes has kept me preoccupied,” explains Richter. “While AI implementation is bound to have a tremendous impact on many aspects of how organizations operate in the future, research regarding the deployment processes is still in the early stages.”
For an AI revolution to take place in the business of dealmaking, AI modules require data sets to be gathered and trained on. In order to take a strategic business decision, the data sets need to be reliable and reflective of desired end states.
Ayelet Richter is at the forefront of guiding organizations through complex deals with the power of AI technological advancements.
Looking forward, Richter envisions a future where AI-driven insights increasingly inform M&A strategies and dealmakers. She believes that as organizations continue to embrace digital transformation, the integration of AI will become a cornerstone of successful investment strategies and M&A activities.
“The purpose of using AI is to advance and accelerate the execution of multiple transactions,” Richter says. “However, the human factors and personal relationships will remain the key elements for a successful business transaction.”
