Generative AI reduces M&A costs by 20%, McKinsey says
Generative AI reduces M&A costs by 20%, McKinsey says
Publish Date: 2026-02-18 17:01:00
Source Domain: www.cfodive.com
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Generative AI and M&A efficiency: Generative artificial intelligence has reduced merger-and-acquisition (M&A) timelines by 10%-30% and costs by about 20%, according to McKinsey.
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Rapid identification of opportunities: The technology helps companies quickly identify M&A opportunities influenced by factors like geopolitical shifts and regulatory changes.
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Growing AI adoption: Bain & Company found that one in five surveyed companies used generative AI in 2025, with over half expecting to integrate it into their dealmaking by 2027.
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AI’s role in rising M&A activity: PwC reported that over 20% of U.S. mega-deals in 2025, exceeding $5 billion, had an “AI theme,” driven by a focus on companies in the AI space.
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Global M&A growth: Global M&A deal value grew to $4.7 trillion in 2025, up 43% year-over-year and 20% above the 10-year average, with large deals being particularly notable.
