The Outlook for AI M&A Under a New US Administration

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AI M&A shown with people building a tower

With a new administration promoting a pro-business agenda, mergers and acquisitions (M&A) in 2025 are poised for acceleration, especially in technology subsectors like artificial intelligence (AI). A deregulated environment, combined with corporate-friendly tax policies, is reshaping the landscape for AI M&A, creating fertile ground for dealmakers and innovation alike. 

A key factor driving this optimism is the potential for reduced red tape. Businesses thrive when the rules are clear and predictable. This stability encourages bold moves, and M&A activity often follows.  

Early signs of this momentum are already apparent. Deal activity on Datasite, a platform that facilitates up to 15,000 deals annually, shows a 22% global surge in the two weeks following the U.S. election. Notably, new technology, media, and telecommunications (TMT) deals led the charge, jumping 60% year-over-year during the same period. 

How Deregulation Boosts AI Investment

AI stands to benefit significantly from this renewed emphasis on deregulation and innovation. Encouraging private-sector investment will fuel the rapid development of AI technologies, particularly generative AI tools. These tools are no longer niche; they’re becoming essential across industries, transforming everything from healthcare and finance to manufacturing and retail. 

For example, in healthcare, generative AI models assist doctors in diagnosing illnesses faster and more accurately. In finance, AI-driven platforms streamline investment decisions, improving outcomes and efficiency. And, in manufacturing, generative AI tools optimize production processes, reducing waste and maximizing output. The ripple effects are clear: innovation drives growth, and growth attracts investment. 

As businesses look to integrate AI into their operations, the appetite for M&A grows. Acquiring startups or partnering with established tech firms allows companies to stay competitive and capture market share in a rapidly evolving landscape. 

AI’s Dual Role in M&A

AI isn’t just a target for investment—it’s also changing how deals are done. A recent Datasite survey found that exploring generative AI tools is the top operational focus for dealmakers in 2025. These tools streamline due diligence, uncover hidden insights, and predict market trends, making them indispensable for navigating today’s complex deal-making environment. 

Yet, while AI enhances efficiency, traditional skills remain crucial. Successful M&A hinges on sharp valuation analysis, skilled negotiation, and deep local market expertise. Generative AI doesn’t replace these skills—it amplifies them. For instance, AI M&A can quickly analyze financial data, but dealmakers still need to interpret the results and negotiate terms effectively. 

What AI M&A Means for the Innovation Economy

The intersection of deregulation and AI adoption points to a dynamic period of growth. A pro-business approach opens the door for companies to invest in transformative technologies without fear of excessive oversight. Meanwhile, AI’s integration into M&A processes makes it easier for dealmakers to identify value, streamline operations, and close deals faster. 

This combination creates a feedback loop: AI drives innovation, innovation attracts investment, and investment fuels more AI development. The TMT sector, which is already leading the post-election M&A surge, is well-positioned to capitalize on this momentum. Companies investing in AI will not only improve their operational efficiency but also gain a competitive edge, setting the stage for sustained growth. 

The Road Ahead

2025 promises to be a landmark year for M&A and AI. With a potential regulatory environment that supports bold moves, companies can pursue transformative deals that redefine industries. Generative AI tools will play a central role, not just as investment targets but also as enablers of smarter, faster deal-making. For example, Datasite plans to continue to invest in AI.  

To make the most of potential opportunities with AI M&A, dealmakers must be deal ready. Businesses that embrace proactive strategies and leverage technology to mitigate risks and enhance efficiency will be best positioned to thrive. 

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