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New Diligence Challenge: Uncovering AI Risks and Opportunities | Bain & Company

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Five questions that financial sponsors and M&A dealmakers ask to evaluate AI’s (sometimes unexpected) impact on a target. By Benjamin Farmer, Gene Rapoport, Richard Lichtenstein, Emmanuel Coque, Amy Wall, and Parker DeRensis Table of Contents Artificial intelligence has surfaced as a major consideration in due diligence as both private equity and corporate M&A buyers are investing more time and effort to uncover the technology’s potential impact on target companies. Most acquirers tell us that an AI diligence has convinced them to walk away from a deal, yet the smartest dealmakers aren’t just turning down deals; they’re using diligence to uncover how AI could unlock new efficiencies, growth levers, and even entirely new business models in a target. It has become a key component for a full potential diligence. When a financial sponsor performed diligence on an AI native healthcare company it hoped to acquire, the diligence team built a prototype rivaling the functionality of the firm’s

New Diligence Challenge: Uncovering AI Risks and Opportunities Five questions that financial sponsors and M&A dealmakers ask to evaluate AI’s (sometimes unexpected) impact on a target. By Benjamin Farmer, Gene Rapoport, Richard Lichtenstein, Emmanuel Coque, Amy Wall, and Parker DeRensis Copy link Email LinkedIn X Facebook '> Progress: en At a Glance Private equity investors and M&A dealmakers now evaluate artificial intelligence's potential impact as a critical step in a full potential diligence. The three categories of AI's impact are revolution, transformation, and augmentation. AI's

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