The impact of AI in M&A negotiations
The AI market is estimated to reach an approximate value of USD100 billion in 2025, with projections which point to this figure potentially doubling towards 2030. This level of growth reflects the increasing adoption and application of AI across many areas, including M&A.
M&A figures speak for themselves: 21% of professionals are already using generative AI in their processes, a 16% increase from last year. During 2025, one in three professionals are expected to incorporate AI into their workflow. Bain & Company estimates that, in the coming months, AI tools will reduce the time needed to prepare integration plans and transition service agreements by over 80%.
AI is also redefining the scale of transactions. In 2024, the number of M&A deals reduced by 17% but their value increased by 5%, indicating a trend towards larger deals. There were 502 transactions exceeding the USD1 billion mark, 72 of which were for over USD5 billion.
This impact is felt across to many sectors: although the Technology sector is ahead, we have also witnessed large transactions in Insurance, Media and Entertainment, Banking and Energy. For example, during 2024 there were more than 400 M&A deals in the Life Sciences sector (pharma, biotech, digital health…) in Europe, with a global volume exceeding EUR120 million.
The future of mega-deals is here
The future of M&A is clearly shaped by technology. We expect activity to focus on acquisitions aimed at accessing new capabilities, entering new markets, and improving operational efficiency.
AI is also drawing attention towards sectors such as data centres, with an expected investment of over USD2 billion in the next five years.
AI-powered data rooms are streamlining every step, from deal sourcing to due diligence and post-merger integration. The automatization of critical processes is enabling faster transactions, reducing risk and improving the identification of synergy opportunities between companies.
The market is also showing optimism. 51% of surveyed professionals anticipate an increase in the number and value of M&A transactions during 2025. This is due to a combination of factors including greater corporate confidence, access to capital and AI´s ability to make processes more predictable and less risky.
Of course, AI in M&A also presents complex challenges. The regulation and ethics of AI have become priorities, especially in the EU market, where stricter regulations are already being implemented. Privacy, data security and algorithm reliability will be critical factors to guarantee that this technology is used responsibly.
We understand the importance of adapting to these trends. At Confianz, our markedly practical approach to these issues sets us apart.
