Gen AI is no longer just theoretical in M&A. Leading teams are already using it to find targets, support due diligence and deal making, and improve integration planning and execution. In a McKinsey survey, 40 percent of respondents using gen AI in their M&A activities said it shortened deal cycles by an average of 30 to 50 percent. As next-generation tools grow more capable—linking internal and external data, automating more processes, and learning from each transaction—companies that build AI fluency now, formalize their M&A playbooks, and map out a clear adoption strategy will be best positioned to capture the value ahead, note McKinsey’s Kameron Kordestani, Rui Silva, and Julia Berbel.
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A matrix of circular data markers shows the top benefits observed from using gen AI tools in M&A, segmented by four process phases—target identification, due diligence, dealmaking, and integration and separation—as well as an aggregate “all phases” column. Each row represents a specific benefit, with percentages indicating the share of respondents (from a 200-person survey) who selected that benefit as one of their top three. The most-cited benefit overall is “more or improved insights into deal,” with 66% of respondents selecting it during the dealmaking phase, 65% during integration and separation, 49% during due diligence, and 48% during target identification, for an all-phases value of 57%. “Simplified or streamlined processes” is also prominent, peaking at 63% during target identification, 61% during dealmaking, and 56% across all phases. “Faster deal cycles” (average 30–50% faster) show 46% in due diligence, 40% in integration and separation, and 40% overall. “Reduced costs or head count required” is cited by 42% in both target identification and dealmaking, but by just 33% in due diligence, averaging 39% across all phases. “Enhanced accuracy in analysis” is most notable in due diligence (51%) and integration and separation (44%), with an all-phases value of 39%.
Note: This image description was completed with the assistance of Writer, a gen AI tool.
Source: McKinsey survey on adoption of gen-AI-enabled tools in M&A processes, 200 participants, 2025.
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