The prospects for investment in artificial intelligence (AI) over the next four years are bright. With Donald Trump returning to the U.S. presidency, companies and dealmakers are preparing for a more business-friendly regulatory environment that could accelerate mergers, acquisitions and private-sector innovation in artificial intelligence.
business friendly landscaping
The Trump administration is expected to prioritize policies to cut red tape, ease antitrust scrutiny and implement business-friendly tax policies. This creates a stable and predictable regulatory environment – a key factor driving M&A activity. In the past, this situation has led to companies making bold deals with confidence, setting the stage for industry transformation.
Although he has not yet taken office, the impact of these anticipated policy shifts is already evident. In the second half of 2024, the number of seller-side transactions in the Americas on Datasite, a platform that facilitates more than 15,000 transactions per year, increased by 9% compared with the same period last year. Notably, in the three weeks following the election, deal initiations on Datasite surged more than 50% year-on-year. Since these deals are new and not announced, it’s a good indication of what’s to come.
Much of this activity is driven by the technology, media and telecommunications (TMT) industry, with artificial intelligence assets taking center stage.
Artificial Intelligence: A Catalyst for Innovation, Growth and M&A
Artificial intelligence will benefit greatly from a pro-business agenda and Trump’s appointment of David Sacks as AI czar and Sriram Krishnan as special adviser. Once considered a niche, generative AI tools are now essential tools across industries. They are transforming nearly every sector—from healthcare and finance, to manufacturing and retail—driving innovation and creating new investment opportunities.
In healthcare, for example, generative AI can improve diagnostic accuracy and speed up treatment planning, while AI tools can streamline production processes, reduce waste and maximize manufacturing yields. These technological advances drive growth and ultimately attract investment. As companies increasingly integrate artificial intelligence into their operations, M&A interest has grown. Acquiring startups or partnering with established technology companies allows companies to stay competitive and capture market share in a rapidly evolving environment without having to create AI tools themselves.
The role of artificial intelligence in the M&A process
However, AI is more than just an investment objective; It is also changing the M&A process itself. Artificial intelligence is already significantly reshaping how transactions are completed, from automating repetitive tasks and supporting data analysis to streamlining the process at all stages of a transaction.
Today’s M&A leaders must consider a wide range of geopolitical, regulatory and financial risks in deal decisions and are required to manage information and data from multiple stakeholders in a high-pressure, time-sensitive environment. Artificial intelligence can help dealmakers manage some of the inherent risks, and due diligence is a key area where the technology is already changing.
Due diligence is resource-intensive and has traditionally relied on tedious manual processing of every piece of information and every document. When faced with tight deadlines and time constraints, the standard of work delivered can suffer. Artificial intelligence can help traders meet this challenge by helping them quickly categorize and summarize content. It can quickly reduce the time involved in processing documents by presenting the core terms and salient associated obligations to all parties involved in the transaction. For example, AI can streamline the organization and classification of documents required for review during due diligence, reducing human error and ensuring compliance with regulatory requirements. At its core, AI is a strategic enabler – helping to provide insights and increase efficiencies during due diligence.
AI can also help buyers identify potential M&A targets by triangulating different market signals such as company description, geographic fit and size criteria. By using private, public and paid data, several AI-driven applications are already helping dealmakers target deals faster.
This approach could mean that, when the deal closes, the companies are better able to integrate new capabilities to achieve the continued growth expected from the partnership.
Additionally, AI can aid the evaluation process by providing objective analysis based on historical data and market factors. By automating repetitive and time-consuming tasks, such as editing, AI can also allow dealmakers to focus on strategic-level decision-making and creative thinking.
Additionally, dealmakers are looking to use AI tools in the M&A process. 66% of global dealmakers say exploring the use of new generative AI tools is their top operational focus area in the next year, while 42% see increased productivity as the main benefit of generative AI to their business. However, there are still some gaps that need to be bridged between knowledge of AI and its applications. A large number of dealmakers say data security and privacy concerns are the biggest obstacles to integrating artificial intelligence into their businesses, and most want the technology to be regulated.
Additionally, while AI can quickly analyze financial data, human expertise remains critical to effectively interpret results and negotiate terms. Generative AI augments these skills, allowing dealmakers to operate with greater precision and efficiency.
The road ahead
The next four years promise to be a transformative period for AI and M&A. With the regulatory environment expected to support bold moves, companies can pursue deals that could redefine industries. Generative AI tools will play a central role, not just as investment targets, but as enablers of smarter, faster trading. For the dealmakers themselves, preparation is critical. Businesses that adopt proactive strategies that include prioritizing deal readiness and leveraging technology to reduce risk and increase efficiency will thrive in the changing environment.
