UBS AI Tool Scans 300,000 Companies in Seconds for M&A Opportunities

UBS Group has developed a cutting-edge AI tool to enhance its mergers and acquisitions (M&A) services, allowing the bank to analyze a vast database of over 300,000 companies in less than 20 seconds. This AI-powered “co-pilot” has been designed to generate buy-side ideas and pinpoint potential buyers for sell-side opportunities.

AI Supporting M&A Processes

Brice Bolinger, Head of M&A at UBS Switzerland, shared the details of the AI tool at the 27th Mergers & Acquisitions Conference in Zurich. One of the tool’s standout features is its ability to identify potential targets for activist campaigns by analyzing the difference in management’s tone between prepared presentations and live Q&A sessions. This unique functionality helps the bank spot companies that may become targets for activist investors.

Broader Applications of AI in M&A

In addition to supporting deal-making, UBS envisions broader applications for artificial intelligence in M&A, such as assisting with legal work and managing data-room tasks. However, efforts to leverage AI for company valuations, financial benchmarking, and analysis have encountered challenges. Compliance risks, particularly regarding confidential data, and concerns over responsibility attribution have made the implementation of AI in these areas more complex.

AI’s Role in the Banking Sector

UBS has been utilizing this AI tool for the past year to streamline M&A processes. As artificial intelligence continues to evolve in the financial sector, the impact on jobs is significant. Citigroup recently noted that the banking industry may experience the largest workforce reductions due to automation, with more than half of banking jobs at risk of being automated.