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UBS Group AG, one of Switzerland’s leading financial institutions, has launched an AI tool to transform how mergers and acquisitions are conducted.
According to a Bloomberg report on September 10, this innovative tool can sift through a database of more than 300,000 companies in under 20 seconds, allowing UBS to significantly enhance its ability to help clients identify M&A opportunities faster and more effectively.
UBS has developed an artificial intelligence tool to help it offer clients potential M&A deals, able to analyze a database of over 300,000 companies in less than 30 seconds https://t.co/yxByuWQhBh
— Bloomberg Technology (@technology) September 10, 2024
Brice Bolinger, UBS’s head of M&A in Switzerland, introduced the AI-powered tool during the 27th Mergers & Acquisitions conference held in Zurich.
Known as the “M&A co-pilot,” the AI system has already been in use for over a year and has proven very useful.
It efficiently generates buy-side ideas, helping clients discover acquisition targets and identifying potential buyers in sell-side situations. Moreover, it goes beyond basic data analysis by detecting potential targets for activist campaigns.
The AI analyzes the tones used by management during presentations and Q&A sessions, offering insights into vulnerable companies.
In M&A terms, the buy-side focuses on helping clients looking to acquire businesses, while the sell-side assists those aiming to sell their businesses.
In addition to identifying M&A opportunities, UBS sees a broader application for its AI tool in legal tasks and managing data rooms during complex transactions.
However, efforts to expand its use into areas like financial analysis and benchmarking have faced obstacles.
Compliance concerns, especially regarding confidential data and accountability, present significant challenges.
Bolinger stressed that while the tool has proven highly effective in certain areas, UBS remains cautious about broader implementation to ensure data security.
Earlier this year, Citigroup predicted that artificial intelligence could automate more than half of banking jobs, underscoring the industry’s rapid shift toward automation.
