Artificial Intelligence in Transaction Advisory

Artificial intelligence (AI) is fundamentally transforming Transaction Advisory Services (TAS), a field historically characterized by significant financial analysis, strict deadlines, and critical decision-making. The processes once reliant on intense and complex spreadsheets and databooksare now increasingly supported by AI-driven systems.

In due diligence engagements, artificial intelligence streamlines entire datasets, efficiently identifying anomalies, pinpointing financial and business risks, and detecting irregularities in working capital within minutes.

The quality of earnings (QoE) analysisa foundational aspect of TASis also being redefined by AI. Automated solutions can normalize EBITDA, identify non-recurring items, and conduct sensitivity analyses across various scenarios without manual intervention. Advisors are leveraging AI to cut down on turnaround times during competitive deal processes.

This technological evolution has implications for staffing. Many tasks traditionally performed by entry-level associatessuch as data aggregation, account reconciliation, and schedule preparationare now being automated. The value of these professionals will depend more on their ability to interpret results, apply the specifics to the current deal frame and effectively communicate findings to clients all while applying professional skepticism to the AI generated outputs.

Despite these advancements, AI is not positioned to fully replace transaction advisors entirely. The inherently human elements of dealsnegotiation, market judgment, regulatory considerations, and relationship managementremain outside the full scope of automation. The future of TAS is not elimination, but adaptation. The best positioned teams are not being replaced entirely by AI, but rather those leaning in on change and embracing AI while also fully serving their client based through thoughtful application and human interaction.  The most impactful TAS professionals will possess both technical financial expertise and proficiency with AI tools, leveraging automation to provide faster, deeper, and more strategic insights.

Artificial intelligence no longer serves solely as a productivity tool in transaction advisory services; it is rapidly emerging as a critical source of competitive advantage.