Briefing at a Glance

  • McKinsey notes that generative AI has transformed the M&A process within just a few years,shortening deal cycles by 10% to 30%, and reducing costs by about 20%.
  • In its 2026 deal outlook report released this month, McKinsey said the technology helps companies identify M&A opportunities faster, including those driven by geopolitical shifts, supply chain disruptions, and regulatory changes.
  • "The many use cases of generative AI continue to evolve and strengthen," McKinsey said. A spokesperson noted that the time and cost savings figures are based on a survey conducted in February 2025.

Deep Insights

In M&A trend reports, AI is increasingly taking center stage, both as a deal-making tool and as an investment driver.

In early 2025, Bain & Company reported that about one-fifth of surveyed companies had alreadyused generative AI in M&A processes, and more than half expect to integrate it into deals by 2027.

"We expect that companies that master generative AI applications in M&A within the next five years will identify targets faster than competitors, assess deal value with greater confidence, complete due diligence and integration with fewer resources, and ultimately achieve higher M&A-driven total shareholder returns," the Bain report said.

Meanwhile, according to a December analysis by PwC, one of the Big Four accounting firms, interest in acquisition targets in the rapidly growing AI sector, despite economic uncertainty,helped fuel a surge in overall M&A activity last year. PwC said that during the 11-month period ending November 2025, more than 20% of large U.S. deals valued at $5 billion or more had an "AI theme."

Overall, McKinsey's report showed that global M&A deal value grew to $4.7 trillion in 2025, up 43% from the same period a year earlier and 20% higher than the 10-year average of $3.9 trillion.

Large deals played a significant role in the surge, with top companies absorbing the impact of geopolitical and trade challenges last year. McKinsey researchers said the number of deals valued at $10 billion or more rose to 60, the highest level since the post-COVID M&A peak in 2021.

"The economic impact was milder than expected, balance sheets remained strong, monetary policy lowered the cost of capital, and the buzz around AI also fueled optimism," they said.