Artificial intelligence (“AI”) is transforming industries at breakneck speed, reshaping the way organisations operate and how decisions are made. From customer service to supply chain optimisation, AI is creating measurable efficiencies across sectors. Yet, when we look specifically at mergers and acquisitions (“M&A”), the role of AI is both promising and nuanced. Unlike other areas of business, the benefits here are not always immediately obvious, making it critical for leaders to understand where technology creates value and where human expertise remains indispensable. 

The M&A journey is complex and multifaceted, spanning stages from sourcing and screening targets, to initiating contact and negotiating NDAs, to conducting preliminary evaluations, issuing Letters of Intent, performing due diligence, presenting binding offers and finalising contracts. Within this process, AI is proving to be an accelerant in ways that are both powerful and practical. In the early stages, once financial performance and growth potential criteria are defined, AI can map potential targets across vast datasets with unprecedented clarity. 

“AI supports research and analysis for decision-making, helps investors determine what makes a strong investment and builds a solid case for an investment committee,” remarked a sector executive. As deals progress, AI continues to demonstrate its value during the labour-intensive phases of due diligence. Natural Language Processing (“NLP”) allows for the rapid analysis of financial records, contracts and legal documents - tasks that once consumed weeks of analyst time. Tools such as DelaRoom AI can now accomplish in hours what once required entire teams working around the clock. This acceleration not only saves time but also provides executives with more comprehensive visibility into a company’s potential risks and obligations. 

Still, institutions are recognising that the real opportunity lies in targeted, organisation-specific applications rather than generic, one-size-fits-all uses. A large bank in Chile, for instance, recently approved a confidential AI usage plan for one of its divisions at a global level. “Everyone is free to use a specific AI tool - ChatGPT - and all the information entered there is protected from being leaked or published by third parties.” The corporate finance expert continued, “They’ll continue with this setup for a few months and then conduct an internal analysis to identify what was used most, where it added the most value and where it didn’t.”  

“[The bank] will continue with this [ChatGPT] setup for a few months and then conduct an internal analysis to identify what was used most, where it added the most value, and where it didn’t.”

Head of M&A and Corporate Finance, Chile

Indeed, AI is a double-edged sword. On one hand, it helps institutions deal with risks by reviewing memos, analysing proprietary data and giving timely feedback. On the other, it can amplify risks if not properly controlled, whether by overlooking qualitative nuances or by misjudging the credibility of sources. This is especially true in emerging markets like Latin America, where AI cannot easily distinguish between how regulations are written and how they are actually enforced in practice. Nor can it reliably assess the trustworthiness of information sources, often treating all inputs as equally valid. These limitations “highlight the importance of pairing AI-driven efficiency with human discernment,” confirmed an industry consultant. 

While AI can process data with remarkable speed, precision should not be mistaken for truth. In the high-stakes settings where commerce, politics and human motivations intersect, algorithms fall short of the cultural awareness and empathy that only people can bring. This is why strategic advice is indispensable, as it helps organisations look past surface-level outputs, uncover blind spots and connect dealmaking to the wider strategic and market context. Advisors provide the judgment needed to turn AI’s analysis into actionable insight.

“AI affects both the products offered and the client experience, which may change as institutions adopt AI more deeply.” The sector executive continued, “The focus is not on replacing humans but on removing repetitive tasks so staff can concentrate on higher-value activities,” such as stakeholder engagement, cultural assessment and strategic positioning.  

“The focus is not on replacing humans but on removing repetitive tasks so staff can concentrate on higher-value activities.”

Sector executive, LatAm

For decision makers, the lesson is not to view AI as a wholesale substitute for expertise, but as a partner in augmenting it. Institutions that adopt more targeted tools within their organisations will achieve the best results, marrying AI’s ability to process information at scale with the judgment, foresight and credibility that only humans can provide. 

In short, AI is redefining the mechanics of M&A, but human judgment remains the ultimate differentiator. The firms that recognise this (and embed it into their dealmaking strategies) will be the ones that consistently turn transactions into enduring value.