Artificial intelligence (AI) is currently dominating headlines. Accelerated by the global pandemic, a company’s ability to lean into digital transformation has become key, and necessary for continued success. This, coupled with a growing remote or hybrid workforce is paving the way for an increased need for more collaborative tools and greater productivity. Here, we’ll explain how cloud and AI can help companies win.
Yet, for many businesses, owning hardware and software, and running data centers involves a lot of capital investment and risk, with virtually no way to properly scale or change the services received. Enter cloud-based platforms and software solutions. As businesses continue to grow, and generate large quantities of data, having the ability to access, and analyze that information is crucial to identifying new revenue streams, new products, or streamlining and optimizing operations. Amidst today’s uncertain market conditions, businesses need to be agile, flexible, and adaptable to changing demands, and cloud-based platforms and solution can help identify where and when changes should be made. This is how AI can help companies.
Leveraging Smarter and More Efficient Solutions
As the base of most emerging technologies, cloud-based platforms and solutions are growing. For example, as interest in AI continues to grow, so will the platform where it runs. Knowing this, it’s no wonder that global cloud operators and vendors brought in $544 billion in revenue in 2022 and expect to reach $1.7 trillion by 2029.
Many industries already benefit from cloud, including the mergers and acquisitions (M&A) industry. As those in M&A know, dealmakers are often stretched thin with heavy workloads and face unprecedented pressure to effectively manage more with less. Using cloud-based platforms and tools can provide multi-team collaboration to handle deal management efficiently and effectively and ultimately leading to increased productivity. Through seamlessly connected applications, cloud-based platforms also help dealmakers to better manage their costs and eliminate compliance risks. This is particularly critical because, as due diligence drags on, the likelihood of a deal falling apart rises by nearly 50% each week. Additionally, with due diligence costs at about $100,000 per week, delays can be expensive.
AI Can Help M&A Close the Gap
With the current prevailing market conditions, it’s also crucial that dealmakers remain fully prepared to engage in deal-making activities, no matter where they are. However, a significant majority of those in the M&A space still rely on disparate and non-specialized systems, such as spreadsheets and emails, to manage their strategic transactions. Consequently, managing deals is frequently a manual process, which can be both laborious and prone to errors. For instance, over 75% of dealmakers use spreadsheets to manage their pipelines, while 55% rely on spreadsheets to handle direct or self-sourced deals. The use of these static documents is cumbersome and can slow the deal-making process. By using more connected cloud-based solutions, dealmakers can experience a more streamlined and efficient approach to managing their transactions. The power of the cloud and AI can help companies win.
Cloud-based solutions can also leverage AI to both access and manage large amounts of data and insights instantaneously, allowing dealmakers to quickly identify trends, make predictions, develop strategies with greater accuracy and precision, and ultimately improve their dealmaking process. For example, AI algorithms can use historical data to make predictions about future trends and outcomes. This can be particularly useful in M&A scenarios where businesses need to forecast market trends, access financial performance, and quickly access other critical metrics. AI predictive analytics tools can also help businesses make better-informed decisions about potential acquisitions or partnerships. And because AI-powered tools can automate data gathering, document review and risk analysis, cloud-based platforms and tools can help businesses conduct due diligence more efficiently and accurately, reducing the time and cost required to complete the process.
Cloud and AI Can Help Companies Win
With the ability to access data from virtually anywhere, businesses can leverage the power of cloud-based solutions to make informed decisions and optimize their M&A performance. And while cloud-based platforms and AI can help companies win, they are making an impact on the M&A industry, it won’t be long before other industries lean into these technologies to remain agile and competitive in a rapidly changing market.