UBS Group AG, one of Switzerland’s leading financial institutions, has developed a groundbreaking artificial intelligence tool designed to streamline mergers and acquisitions (M&A) processes. Capable of analyzing a database of more than 300,000 companies in under 20 seconds, the tool is reshaping how UBS supports its clients in identifying M&A opportunities.
Unveiled by Brice Bolinger, UBS head of M&A Switzerland, at the 27th Mergers & Acquisitions conference in Zurich, the AI tool—referred to as an "M&A co-pilot"—has already been in use for a year. It helps generate buy-side ideas and identify potential buyers for companies in sell-side situations. The tool's advanced capabilities extend to detecting potential targets for activist campaigns, with an ability to analyze management tones from presentations and Q&A sessions.
“This AI technology allows us to process vast amounts of data at lightning speed, offering clients more precise and timely M&A solutions,” said Bolinger.
In addition to identifying M&A opportunities, UBS sees the potential for its AI tool to assist with legal tasks and data-room operations in M&A transactions. However, efforts to implement AI for more nuanced tasks like financial analysis and company benchmarking have encountered challenges. Bolinger noted that concerns over compliance, especially related to confidential data and accountability, complicate broader adoption.
Despite these hurdles, UBS continues to lead the way in integrating AI into the M&A sector. As Bolinger explained, "The tool has proven highly effective in certain areas, but we remain cautious about its limitations, particularly in ensuring data security."
UBS is not alone in this trend. Earlier this year, Citigroup Inc. predicted that artificial intelligence would significantly reshape the banking industry, with over half of banking jobs at high risk of automation. Nevertheless, UBS's use of AI demonstrates the growing role of technology in enhancing the efficiency and accuracy of M&A processes.
