This should be the exact type of scenario where AI can unlock significant value. AI could trawl the vast swathes of available data to calculate the correlations between potential buyers and sellers based on what they have said publicly, speculation in the market, and other softer deal drivers (investors reaching the end of their usual investment horizons), to identify likely transactional partners.
Using AI to inform the deal origination environment could radically change the market, by identifying previously unknown opportunities. AI is not (yet) able to judge emotion and so much negotiation, from the initial approach about a potential deal to finalising the terms, comes down to the individual involved and their views, approaches and feelings. How many times are negotiations resolved by someone presenting a solution “the right way”, so that both sides feel that it addresses their needs and wants? The human touch in a room is still, more often than not the critical factor in successfully concluding a transaction.
What AI can offer, however, is a much wider universe of deal opportunities than are available simply by plugging into individual networks, across the spectrum of corporate transactions – joint venturing, M&A, IPOs, divestments, investments. The role of the deal originator may be about to be subject to its biggest change in history.