As we head into summer 2025, mergers and acquisitions (M&A) stands at a crossroads. Geopolitical tensions, economic headwinds, and rapid advances in technology are forcing dealmakers to rethink how they source, structure, and shut transactions. Trade policy is emerging as a serious variable. Unpredictable tariffs, shifting alliances, and growing regulatory scrutiny have pushed global deal activity into more cautious territory. Yet amid the uncertainty, artificial intelligence is coming into focus.
AI is not any longer a futuristic add-on. It’s becoming central to the best way firms approach M&A. In a climate where speed, precision, and risk management matter greater than ever, AI is giving dealmakers a critical edge. It helps surface opportunities faster, pressure-test assumptions, and spot risks early, before they derail a transaction. AI is not just making M&A faster. It’s making it smarter.
Trade Uncertainty Is Reshaping M&A Strategy
Changing US trade policies are stalling cross-border deals and making future revenue streams harder to predict. Consequently, dealmakers face a two-sided challenge: how one can keep deal momentum alive while insulating portfolios from geopolitical shocks.
Among the effects are already evident on Datasite, which handles over 19,000 latest deals a yr. Latest deal kickoffs, especially asset sales and mergers, are up 4% globally in the primary 4 months of this yr in comparison with the identical time a yr ago. Since these are deals at inception before they’re announced, it may well provide a great sense of what’s to return and a number of the momentum that has already occurred.
Yet there’s caution, too. Deal completion rates on Datasite sank to 44% after the primary major US tariff announcement on April 2,  down from 49% year-over-year (YoY). This implies buyers are slowing down. They need more time to judge risks. They’re asking more questions. They’re probing the effective print, and if crucial, they’re walking away.
A key reason is tariffs. When tariffs are imposed on imported goods or raw materials, they will directly impact the associated fee structures and profit margins of goal firms, especially those with global supply chains. This creates volatility in financial projections, which complicates valuation models and discourages dealmaking. Buyers face added risk as they fight to evaluate whether a goal’s current revenue performance will be sustained under changing trade conditions. In lots of cases, tariffs prompt firms to reconsider expansion into or acquisition inside certain countries, shifting M&A activity toward regions with more stable trade relationships.
Moreover, ongoing trade tensions, akin to those between the US and China, have led to increased regulatory scrutiny, which further delays or derails deals. These combined aspects force dealmakers to spend more time conducting due diligence, modeling various tariff scenarios, and adding protective clauses to deal structures. This then makes the M&A process more complex and dear.
Tariffs usually are not just increasing operational expenses, also they are reshaping strategic planning by making it harder to forecast long-term growth, return on investment, and integration outcomes in cross-border transactions.
Risk models now routinely think about tariff exposure. Buyers are looking not only at what a goal company earns today, but how future trade policy could affect that money flow. Some deals, particularly cross-border ones, are being paused or restructured entirely because the investment math shifts.
To remain competitive, dealmakers must adapt. Which means embracing higher tools, faster workflows, and more rigorous diligence. It also means constructing flexibility into the deal process to account for economic swings.
AI Streamlines Diligence and Strengthens Risk Controls
That is where AI is stepping in. It’s helping deal teams process more information in less time and with greater accuracy. Due diligence is a critical but resource-intensive process that traditionally involves manually reviewing large volumes of documents and knowledge. This approach will be time-consuming and laborious, often placing significant strain on professionals, especially when working under tight deadlines. Consequently, the standard and thoroughness of the review could also be compromised. AI offers an answer to this challenge by enabling faster and more efficient evaluation. AI tools can quickly sort, summarize, and highlight key clauses and relevant obligations inside documents, allowing dealmakers to concentrate on crucial information. This not only improves accuracy but additionally significantly reduces the time required to finish the due diligence process. For instance, AI can organize, categorize and flag key data and risks across hundreds of documents in a virtual data room in real time, helping to cut back human error and ensuring compliance with regulatory requirements.
It’s no surprise that one in five dealmakers now use generative AI within the M&A process, while many more say AI adoption is their top operational priority this yr. Why? Since the M&A playbook is changing. Reviews are more intense. Regulators ask more questions. Investors demand deeper insight. AI helps answer the decision.
Virtual data rooms are also evolving. It’s now common for deal teams to make use of AI-powered Q&A tools to interrogate information before making a move. In truth, using Q&A tools on Datasite has climbed because the start of the yr, reflecting an increased need for sellers to be able to respond quickly and thoroughly to buyers who wish to see clean, complete data.
Moreover, AI is increasingly playing a helpful role in identifying potential acquisition targets. By analyzing various market signals, akin to company descriptions, geographic compatibility, and size-related criteria, AI may help buyers pinpoint suitable candidates more efficiently. These insights are sometimes derived from a mix of public, private, and proprietary data sources. Consequently, some AI-powered platforms are already enabling dealmakers to find potential targets more quickly and accurately. This proactive approach can improve strategic alignment, making it easier for firms to integrate latest capabilities post-acquisition and achieve the expansion objectives intended by the deal.
AI also can contribute to the valuation process by offering data-driven analyses based on historical trends and current market conditions. It may well also automate routine and labor-intensive tasks, akin to redacting sensitive information in documents. By streamlining these operational steps, AI allows professionals to focus more on high-level strategy and modern considering, ultimately improving the standard and effectiveness of decision-making throughout the M&A lifecycle.
Dealmakers Must Shift from Reactive to Proactive
In today’s environment, waiting for the proper moment to launch a deal isn’t a technique, it’s a liability. Timing matters, but preparation matters more. Those that reach this market might be those who invest early in deal readiness. That may include cleansing up financials, mapping supply chain dependencies, reviewing IP portfolios, and aligning management on deal terms.
After all, AI alone isn’t the reply. The most effective strategies mix human insight with machine intelligence. Use AI to surface options. Use your team to make the calls. Technology should guide the method, not replace judgment.
The Way forward for M&A Is Here
M&A will all the time carry risk. But how one can manage that risk is changing. AI is raising the bar. It’s giving dealmakers the tools to work faster, smarter, and with more foresight.
In a world where tariffs will likely proceed to evolve, and regulators can shift course mid-review, speed and insight matter. The longer term belongs to dealmakers which can be data-driven, tech-forward, and strategically agile.
