Having recently attended the IR Global M&A session on Leveraging AI in Global M&A Transactions, alongside internal training on legal AI tools at my firm, I have been reflecting on both the opportunities and limitations that AI presents for legal profession in M&A transactions.
There is no doubt that AI is already reshaping certain aspects of transactional work. There was a shared recognition amongst my IR global colleagues across multiple jurisdictions that AI can add real value, particularly when dealing with high volumes of information. Whether it is summarising lengthy documents, streamlining due diligence outputs, or assisting with the preparation of ancillary documentation, AI can significantly increase efficiency and potentially reduce turnaround times.
However, the IR Global discussion also highlighted a consistent theme: while AI is a powerful tool, it cannot replace the nuanced legal and commercial judgment that an experienced M&A lawyer brings to a transaction.
M&A transactions, especially complex ones, are rarely just about processing information or reviewing transactional documentation. They require careful structuring, strategic thinking, and nuanced negotiation. An experienced M&A lawyer brings more than technical knowledge; they bring an understanding of the commercial drivers behind the deal, the personalities involved, the broader market context and the subtle dynamics that can ultimately determine success or failure of a transaction.
AI, at least in its current form, cannot replicate this depth of insight. It does not “understand” the transaction in a holistic sense, nor can it fully anticipate how different deal terms might interact in practice or impact the parties’ objectives.
There are also important risks to consider. AI-generated outputs can sometimes include inaccuracies or so-called “hallucinations,” and they still require careful review and validation. Crucially, AI cannot assume responsibility for the final output or stand behind negotiated outcomes in the way an experienced transactional lawyer can.
In short, AI is becoming an increasingly valuable assistant in M&A transactions, but it remains just that: an assistant. The core of deal-making still relies on human expertise, judgment, and experience.
The future of M&A is not about AI replacing lawyers, but about lawyers who know how to use AI effectively delivering better, faster, and more informed outcomes for their clients.