The Impact of AI on the Deals Market

There is palpable excitement, anticipation, and trepidation regarding the potential for AI to transform our world, with much discussion regarding the impact in the deals market. The capabilities for AI to differentiate and drive deal value through operational efficiency, innovation, and new revenue streams have garnered substantial attention from investors.

The technology has already triggered significant interest and adoption, with numerous new ventures emerging in 2024, driven by substantial capital market commitments in this developing sector. The strategic emphasis that AI has evoked in the market can be seen to have reshaped organisational priorities, redirecting significant expenditure to technology. Organisations are investing heavily, in the hope of benefiting from strategic early adoption. However, the key question remains: to what extent will the benefits materialise, and will this investment pay off?

We are seeing our clients transition from initial fascination with AI to a demand for tangible, delivered value.

This report aims to elucidate the current impact of AI, exploring how trailblazing organisations are identifying and claiming market value, whilst explaining ways that we are using the technology to enhance deal value in diligence and post deal services.

Ed Foxwell

Head of Healthcare and Life Sciences, Deal Advisory, Technology CoE

KPMG in the UK

mail
call

The Impact of AI on the Deals Market

Is the hype warranted, and will investments pay off?

Download

The impact of AI on identifying and realising deal value is profound and ever-expanding: it reshapes valuation models, diligence frameworks and deal rationale through digitised operating models, while driving efficiencies in post-deal activities. At KPMG Advisory, we lead in distinguishing genuine AI potential from “AI washing,” leveraging advanced tools to enhance diligence, quantify value-creation in scalable digital business models and accelerate time to value. Looking ahead, AI-driven agents will streamline industry workflows, making sophisticated AI adopters prime acquisition targets. Investors’ next challenge will be accurately measuring AI’s true impact, and KPMG is investing heavily in diligence services to ensure it is both visible and quantifiable.

The rapid advancement of AI is not just a trend but a transformative force that demands immediate attention and strategic action. Business and technology leaders should be focused on the benefits and risks that market adoption of AI could bring to their organisation:

To what extent can integrating AI into your current capabilities improve efficiencies?
Have you already invested in AI, but benefits are being limited by lack of adoption?
Is there evidence in your sector that disruptive AI driven business models are coming to market?
Do you need to look at disrupting your own business model to capture a competitive edge?
Do you need to review your targets and valuation models to consider AI and the potential for value creation?
Could the acquisition of proven strategic assets speed up your transformation?
Finally, can you really afford the risk of doing nothing?