M&A dealmaking is known for its high pressure, long hours, and focus on efficiency and profit. Despite some improvements in work-life balance over the last decade, such as the “Saturday Rule” and “Protecting Friday Night,” the typical workweek still spans 60-70 hours.
AI presents an opportunity to change this dynamic. According to Microsoft research (Cambon et al, 2023), AI can reduce time spent on tasks like information retrieval by 27% when using co-pilot features and up to 53% with LLM-based search.
The impact of AI will vary depending on job seniority. Junior staff (often called ‘Associates’) will likely spend less time on data gathering and more on value-added analyses, while Senior Executives will be able to deliver deeper insights more quickly. Let's examine the impact of AI on M&A careers.
The Impact on Associates
Associates often do the heavy lifting in M&A transactions, spending long hours gathering data, building financial models, and preparing presentations. AI is transforming these roles by automating routine tasks, enhancing analysis, and providing new decision-making tools.
1. Automated Data Collection and AnalysisAI tools can automatically gather data from sources like financial reports, news articles, and market databases, reducing the time associates spend on manual data collection. This allows them to focus on interpreting the data.
2. Enhanced Financial ModelingFinancial modeling is crucial for Associates, involving projections and valuations. AI can automate model creation by populating templates with relevant data, allowing analysts to produce more accurate analyses in less time.
3. Shifting Roles and Skill RequirementsAs AI automates routine tasks, the skills required for Associates are changing. There is increasing demand for people with both financial expertise and technical skills in AI and data analytics. This shift allows Associates to focus on more strategic and analytical roles.
Improved Work-Life Balance
By automating routine tasks, AI helps reduce the pressure on Associates, enabling them to focus on more meaningful work and potentially improving work-life balance. The question remains: will initiatives like "Protecting Friday Night" evolve into broader "Weekend Rules"?
The Impact on Senior Executives
AI also transforms senior M&A roles by providing data-driven insights, enhancing decision-making, and speeding up turnaround times for clients.
1. Enhanced Decision-Making and Strategy Formulation
AI can analyze vast amounts of data to provide insights into market trends, deal synergies, and competitive landscapes, allowing Senior Executives to make informed decisions and offer strategic recommendations to clients.
2. Streamlined Deal ExecutionAI can automate the organization and review of deal-related documents, reducing the time spent on manual paperwork and ensuring accuracy and compliance. It also enables better coordination among team members, resulting in faster turnaround times for clienst.
3. More Personalized Interactions and OfferingsAI-driven insights into client needs allow Senior Executives to tailor their interactions and offerings, fostering closer relationships with clients.
AI leads to dilemmas for Senior Executives
Senior executives will face several choices as AI becomes more prominent. Will they use AI to improve client services, reach more customers, or enhance working conditions for Associates to attract top talent? These dilemmas will likely be key topics in upcoming board meetings.
Conclusion and afterthought
However, a pertinent question remains: how will the AI adoption unfold? Will it lead to a better work-life balance for teams working on the deal? Will it lead to higher profitability for the firm? Or, will it lead to higher demands from its clients? Only the future will tell. One thing is for sure: it is going to have a lasting impact on the industry and those waiting to adopt will fall behind by either not being able to attract the best talent or losing deals to competition.
Want to learn more?
If you’re interested in how AI will transform the due diligence process for Buyers, check out this article: https://www.structize.com/post/m-a-due-diligence-with-ai-from-months-to-weeks
or, book an intro call to learn more about Structize AI:
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