While it is still early in the timeline of artificial intelligence (AI) adoption for many companies, effective leaders have already adopted new technologies and practices to enhance efficiency, drive value and streamline mergers and acquisitions (M&A) processes. These leaders know that AI will have a substantial impact on the deal process, potentially creating greater value.
With thanks to a recent collaboration with WTW’s Steven Rosenberg and discussion at an M&A roundtable facilitated by WTW and attended by Fortune 500 organizations, effective leaders identified the following actions relative to AI in M&A situations:
Address concerns about the elimination of jobs. Effective leaders counter concerns about job displacement due to AI with research and data, demonstrating that AI enhances collective intelligence and is more likely a productivity enhancer than a job replacer. In many cases, it complements business functions, makes employees more effective and productive and leads to job-role shifts rather than job elimination.
According to a report by Evercore ISI and Professor David Shrier, almost every job will be impacted by AI in some way, but only partially in most cases. As AI replaces repetitive and mundane tasks, effective leaders deploy dealmakers to focus on higher-value activities that require human expertise, such as relationship management, negotiation and strategic decision making.
When it comes to AI in M&A, effective leaders know they don’t need to go first, but they know they shouldn’t go last.
A version of this article originally appeared on Forbes on May 31, 2024.