M&A is well known for its complexity, as it involves not just dollar and cent figures but also strategy, relationships, negotiations, judgment, and a thicket of laws and regulations that can sink any deal if ignored. Many of these aspects can involve artificial intelligence-based automation, like data collection, initial analysis, and document review, but guiding a client through a transaction from start to end remains a human endeavor for the foreseeable future. (See our feature story, “
Rebecca Brokmeier, principal and group head of KPMG’s corporate finance practice, said that the M&A advisory world has enthusiastically adopted AI, citing a recent study by the Big Four firm that found 96% of dealmakers reporting that they are either currently using or planning to use AI in their M&A processes, with 77% already using it and 19% planning to adopt it soon. This 77% usage rate represents a significant increase from 54% just 12 months earlier, reflecting the rapid integration and growing reliance on AI in the industry. This rise in AI use also extends to KPMG itself, which has invested considerable resources into bringing new AI and generative AI capabilities into its deal advisory practice, especially the firm’s proprietary data and analytics solutions.
The firm’s AI investment is apparent at every stage of the deal lifecycle. Brokmeier said KPMG professionals are using AI for search and screen, where it can efficiently filter through market data to identify high-potential acquisition targets. Once a suitable target is identified, AI is also used in the due diligence and execution workflows through data-driven insights that enhance the client experience. Once the deal closes, she said, KPMG also uses AI to accelerate “the path to value,” as the process often requires a strong integration process and post-close transformation; artificial intelligence, in addition to supporting these processes, can also examine the client’s data and identify new opportunities for further performance improvements. Finally, KPMG has made it a point to give every professional access to generative AI tools and training, and this includes partners and professionals in the deal advisory practice, so they have access to all the standard tools every firm professional has. All these efforts, she said, have produced real returns both for KPMG and for their clients.
“At KPMG, we believe that organizations must broaden how they define the business case for ROI and instead ‘define the value of investment’ in AI to adequately account for the transformative implications of AI. For now, many are turning to important metrics like productivity gains and revenue growth. We’re working with our clients to measure these outcomes, but we’re also helping them measure and narrate a more comprehensive story, integrating other outcomes such as quality improvements, accelerated product development and better customer experience,” she said.
She described what KPMG calls an “and” strategy when it comes to AI tools, which emphasizes augmenting professionals doing the work with generative AI technology, which allows them to apply their human skills and experiences more effectively. As time goes on, she said, workforces will need to increasingly know how to innovate with and work alongside AI and bring high-value skills that complement it. By necessity, this means humans would need to always be part of the process.
“Clients trust KPMG because of our commitment to quality, accuracy, and integrity; human oversight of AI-enabled delivery and responsible decision-making is required to maintain that trust. AI isn’t replacing the human touch. We build deep relationships with clients that allow us to bring strategic insights and ideas, make nuanced judgments and identify creative solutions fit for their business,” she said.
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Consequently, Brokmeier is not overly concerned that AI will completely disrupt the world of M&A advisory, as there are still so many human factors that need to be considered, which requires emotional intelligence that, for now, machines do not possess.
“We believe that people and companies effectively using AI are outperforming those that don’t, and that’s why we invest in our people. KPMG has long had a culture focused on continuous learning, and today, I believe that curiosity, adaptability, and a culture that allows people the freedom to fail fast and learn is more critical than ever. We’re investing in training our teams on how to use the AI tools available to them, re-skilling and up-skilling to future-proof the way we work, and also developing training on the emotional intelligence, creativity and ethical decision-making that must come from them. Every individual also has a responsibility to adopt the tools, experiment safely, and invest the time to learn new ways of working, or even reimagine their role with AI by their side,” she said.
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