Faster deals, deeper diligence: AI is transforming the legal landscape of M&A – new Eversheds Sutherland report finds

The report finds that while technology is making transactions faster and more efficient, it is also increasing complexity around valuation, due diligence, regulation and deal execution, creating greater demand for trusted legal experience and guidance.

Key findings

• AI will drive more M&A, not less, as technology opens up dealmaking to a wider range of buyers
• technology is reshaping deal sourcing, pricing, due diligence and execution
• data, intellectual property, technology and talent are becoming increasingly more important drivers of deal value
• faster, AI-enabled bespoke deals are increasing demand for human legal judgment and strategic advice
• growing use of AI and data is creating new regulatory risks and increasing scrutiny of transactions

Technology is changing the rules of M&A

As businesses increasingly embed AI and other advanced technologies into their operations, new opportunities are emerging to acquire businesses, talent, intellectual property and strategic data assets.

At the same time, technology is reshaping the deal process itself. AI-powered tools are enabling dealmakers to identify, assess and execute transactions more quickly and at greater scale than ever before, while allowing deeper analysis of risks and opportunities.

Antony Walsh, Partner, International Head of Corporate, Eversheds Sutherland, said:

"Technology is lowering barriers to entry and making many aspects of M&A more efficient, but it is also making transactions more complex."

"AI enables deeper due diligence, more sophisticated analysis and greater insight into risk. As a result, buyers are demanding more tailored deal terms, more robust protections and more detailed assessments of value creation."

"Rather than reducing the need for legal expertise, these developments are increasing demand for specialist judgment. Technology can accelerate decisions, but understanding, allocating and mitigating risk remains fundamentally a human exercise."

More technology, more legal complexity

While technology is increasing efficiency throughout the deal lifecycle, the report highlights that it is also creating new legal, regulatory and commercial challenges.

As buyers place greater emphasis on data, technology assets, digital infrastructure and specialist talent, valuation methodologies are becoming more nuanced and contractual protections more bespoke.

At the same time, regulators globally are paying closer attention to AI, data governance, cybersecurity, foreign investment and critical infrastructure, increasing scrutiny of transactions across sectors.

Robert E. Copps, Partner, Co-Head of Global Corporate and Head of M&A (US), Eversheds Sutherland, said:

“Tech-related assets, including data, IP, technology and talent, are the strategic drivers for more and more deals, regardless of industry. Consequently, the legal issues around those assets are taking on greater importance, and the regulatory environment around many of those assets is simultaneously evolving. This is impacting deal diligence, structures and valuations.”

What this means for dealmakers 

The report identifies three key ways technology is reshaping M&A:

1. Assets are changing: Increasingly, buyers are seeking access to data, code, digital infrastructure, proprietary technology and specialist talent alongside traditional financial and strategic drivers of M&A activity. This requires more nuanced approaches to valuation, due diligence and contractual protections.

2. Deal execution is evolving: AI-powered sourcing, diligence and transaction management tools are increasing efficiency and enabling more transactions. However, the same technologies are also supporting more sophisticated risk analysis and more bespoke deal structures.

3. Regulatory and liability risks are increasing: Greater regulatory focus on AI, cybersecurity, data protection, foreign investment and critical technologies mean organizations must navigate an increasingly complex compliance landscape, alongside heightened scrutiny from regulators and stakeholders.

Robert E. Copps added:

"The organizations that succeed will be those that take advantage of the opportunities created by technology with a clear understanding of the legal, regulatory and commercial risk landscape."

Antony Walsh concluded:

"The future of M&A will involve more opportunities, more data, faster execution and greater complexity. That makes experienced legal judgment more important than ever."